CONTX leverte fantastiske tall for Q2, ca. 25% bedre enn hva Norne hadde i sine estimater. Norne er klar på at de nå vil foreta en oppdatering å øke kursmål fra NOK 11.

ContextVision presented an impressive 2Q report this morning with record figures being 20-40% better than our projections. This supports our view of the company to become a solid value case with good dividends in the future.

Record-high 2Q figures
ContextVision released its 2Q22 report this morning. The figures were very strong with record revenues of SEK 32.5m, which was 25% better than we estimated (SEK 25.9m). EBITDA of SEK 15.5m was close to 40% above our SEK 11.3m projection. EBITDA margin ended up at 48% vs 44% in our model. The bottom line was still a bit affected by INIFY spin-off (SEK -1.2m), but was close to 30% above our estimate. Adj. for INIFY net profit came in at SEK 10.8m vs SEK 7.6m in our model.

Amazing P&L figures led to SEK 16.2m increase in cash position QoQ to SEK 35m, which strengthens our case for ContextVision to become a good dividend case hopefully already for 2022.

The new CEO’s comments were also very positive about the 1H but even more importantly about the bright prospects in the future. We share this view and are impressed.

Estimates and TP to be upped
All in all, ContextVision started a new chapter in its history with record figures for 2Q. This should pave the way for the company to become an attractive value case with solid cash flows and growing dividends over the coming years. We are likely to raise our estimates and TP following the report, while the recommendation will depend on the share price reaction to today’s amazing numbers.