Company Announcements

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.

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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.: +49 (0)40 41111 37-80
Web: www.montega.de
E-Mail: research@montega.de
LinkedIn: https://www.linkedin.com/company/montega-ag