Detection Technolgy - Cautious outlook
DT sees growth in IBU sales and double-digit growth in MBU sales in H1 of 2021. Demand in the security market is expected to head for growth in Q2 of 2021 at the earliest. SBU sales will decrease in Q1 year-on-year, but will start to grow in Q2, although demand is still subject to uncertainty. Total net sales are expected to decrease in Q1 and grow in H1 of 2021. DT sees predictability of the company's target markets still lower than usual due to the extraordinary uncertainty caused by the pandemic.
- Group level results: Q4 net sales amounted to EUR 19.9m (-20,4% y/y) vs. EUR 22.2m/22.2m Evli/consensus estimates. Q4 EBIT was EUR 2.3m (11,8% margin) vs. EUR 2.7m/2.75m Evli/cons. R&D costs amounted to EUR 2.2m or 11,2% of net sales (Q4’19: 2.6m, 10,6%).
- Security and Industrial Business Unit (SBU) had net sales of EUR 9.0m vs. EUR 11.3m Evli estimate. SBU sales declined -45,5% y/y, mainly due the COVID-19 pandemic affecting security investments. DT does not expect demand in the security market to improve before Q2 2021.
- Medical Business Unit (MBU) delivered net sales of EUR 10.9m which was in line with our estimate of EUR 10.9m. Net sales of MBU increased by 27,7% y/y due continued strong demand in healthcare. DT expects double-digit growth in MBU sales in Q1 and Q2 2021.
- Dividend proposal is 0.28 (0.28/0.25 Evli/cons).
- Number of active customers increased by almost 20% in 2020 to reach 330
- New segment; as of Q1/21, DT will report three business segments; MBU, SBU and new Industrial Solutions Business Unit (IBU), which previously was part of SBU. Industrial sales accounted for over EUR 10m (25%) of SBU sales in 2020.
- No change in medium-term targets; at least 10% net sales growth, EBIT margin at or above 15%.