Original-Research: Intellego Technologies AB (von Montega AG): Buy

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Original-Research: Intellego Technologies AB - from Montega AG

28.05.2025 / 17:53 CET/CEST

Dissemination of a Research, transmitted by EQS News - a service of EQS

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The issuer is solely responsible for the content of this research. The

result of this research does not constitute investment advice or an

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Classification of Montega AG to Intellego Technologies AB

Company Name: Intellego Technologies AB

ISIN: SE0016075063

Reason for the research: Update

Recommendation: Buy

from: 28.05.2025

Target price: 125.00 SEK (prior: 120.00 SEK)

Target price on sight of: 12 months

Last rating change: -

Analyst: Tim Kruse, CFA; Ingo Schmidt, CIIA

Strong start to the financial year - improved cash collection on quarterly

basis

Intellego Technologies AB reported its Q1 figures on Tuesday after market

close. While both sales and earnings exceeded expectations, free cash flow

was slightly softer than anticipated due to higher CAPEX. That said, a

sequential improvement in Days Sales Outstanding (DSO) compared to recent

quarters marks an encouraging development in working capital management,

which we view as particularly important. The updated guidance confirms

strong ongoing momentum for 2025 and reinforces our investment case.

Q1 sales came in at SEK 200.9m, up 152.5% yoy and above our forecast of SEK

185m. In addition to strong dosimeter sales, we estimate additional revenues

from YUVIO device sales contributed to the beat and were a significant

contributor to the more than fivefold increase in sales from North America

(SEK 10.0m to SEK 61.2m). The company also reports that major collaborations

with Likang and Henkel are progressing ahead of expectations. This supports

the strong performance in Asia, where sales rose from SEK 10.0m to SEK 54.3m

in the quarter, and in our view highlighting the potential of these

partnerships over the medium term.

Supported by better-than-expected sales and a slightly higher gross margin

of 79.8%, EBIT reached SEK 131.3m, well above our estimate of SEK 109.8m.

This corresponds to a remarkable EBIT margin of 66.2%. Operating cash flow

came in at SEK 28.3m, implying a cash conversion of approximately 30% of net

income-down from SEK 34.1m in the same quarter last year. Receivables rose

to SEK 313.3m, largely reflecting the strong topline, but DSO declined qoq,

indicating gradual progress toward better working capital efficiency in line

with our model assumptions. Cash at quarter-end stood at SEK 3.8m (vs. SEK

11.5m at year-end 2024), following CAPEX of SEK 43m primarily for YUVIO

device investments. However, the company secured more credit-insured

receivables during the quarter, leaving it with SEK 76.6m in unused credit

lines-providing ample liquidity to support further growth.

[Chart]

Raised outlook for 2025: Intellego raised its 2025 outlook to sales of more

than SEK 600m and EBIT of more than SEK 250m, citing sustained business

momentum. Following the Q1 beat and the higher implied margins in the new

guidance, we revise our earnings forecast upward, while maintaining our

revenue estimate to reflect the quarterly volatility in device shipments and

bulk customer orders.

The company also announced it would revisit its 3-5 year sales goal of SEK

2bn, given recent progress and significantly larger market potential

(management now sees >SEK 10bn as theoretically possible). While the current

pace lends credibility to these aspirations, we would need a more detailed

roadmap-including customer ramp-ups, product rollouts, and geographic

breakdowns-before incorporating this upside into our model.

Conclusion: We are encouraged by Intellego's strong operational performance

in Q1 and continued improvement in working capital metrics, although further

progress is needed to reach benchmark levels. The updated mid-term ambition

is promising, but still too high-level for meaningful upward revisions at

this stage. Nevertheless, the current investment case already offers

significant upside: based on our revised 2025 estimates, the stock trades at

an undemanding 8.2x EV/EBIT. We reiterate our Buy rating with a slightly

increased price target of SEK 125.00 (previously: SEK 120.00).

Diese Meldung ist keine Anlageberatung oder Aufforderung zum Abschluss

bestimmter Börsengeschäfte. Bitte lesen Sie unseren RISIKOHINWEIS /

HAFTUNGSAUSSCHLUSS unter http://www.montega.de

Über Montega:

Die Montega AG ist eines der führenden bankenunabhängigen Researchhäuser

mit klarem Fokus auf den deutschen Mittelstand. Das Coverage-Universum

umfasst Titel aus dem MDAX, TecDAX, SDAX sowie ausgewählte Nebenwerte und

wird durch erfolgreiches Stock-Picking stetig erweitert. Montega versteht

sich als ausgelagerter Researchanbieter für institutionelle Investoren und

fokussiert sich auf die Erstellung von Research-Publikationen sowie die

Veranstaltung von Roadshows, Fieldtrips und Konferenzen. Zu den Kunden

zählen langfristig orientierte Value-Investoren, Vermögensverwalter und

Family Offices primär aus Deutschland, der Schweiz und Luxemburg. Die

Analysten von Montega zeichnen sich dabei durch exzellente Kontakte zum

Top-Management, profunde Marktkenntnisse und langjährige Erfahrung in der

Analyse von deutschen Small- und MidCap-Unternehmen aus.

You can download the research here: http://www.more-ir.de/d/32758.pdf

Contact for questions:

Montega AG - Equity Research

Tel.: (0)40 41111 37-80

Web: www.montega.de

E-Mail: research@montega.de

LinkedIn: https://www.linkedin.com/company/montega-ag

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2147186 28.05.2025 CET/CEST

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