Detection Technology - Results were better than estimated
DT’s Q4 results were somewhat better than estimated. All three units grew, while fixed costs decreased, and the EUR 4.6m EBITA figure came in above our EUR 4.2m estimate.
- DT Q4 revenue grew by 10.9% y/y to EUR 31.3m vs the EUR 30.4m/30.6m Evli/consensus estimates. Adjusted EBITA amounted to EUR 4.6m, compared to our EUR 4.2m estimate. EBIT was EUR 4.3m vs the EUR 3.7m/3.5m Evli/consensus estimates. Fixed costs decreased due to the measures carried out in Q3, while sales growth supported profitability.
- Medical (MBU) revenue was up by 3.6% y/y to EUR 13.1m, compared to our EUR 13.3m estimate. The Chinese government’s anti-corruption campaign caused demand softness in medical CT applications, however the closing of the Chinese public administration’s annual budgets helped sales to increase.
- Security (SBU) grew by 21.1% y/y to EUR 13.2m vs our EUR 12.4m estimate. The Chinese market remained challenging, but especially Americas and India drove higher demand within other geographies (strong increase in aviation demand as well as in CT and line scan applications).
- Industrial (IBU) revenue increased by 7.1% y/y to EUR 5.0m vs our EUR 4.8m estimate. Growth was driven by TFT flat panel detector sales.
- DT expects Q1 and H1 revenue to remain stable y/y. MBU sales will decrease, while SBU and IBU are to see double-digit growth over the course of H1. In our view DT could achieve roughly 5% y/y growth in H1.
- The BoD proposes a dividend per share of EUR 0.23 to be distributed for FY ’23, compared to the EUR 0.19/0.18 Evli/consensus estimates.