Cyber Security 1

Mangold updates Cyber Security 1 ("CYBER1") after the first quarter of 2023. CYBER1's revenue increased to EUR 13.4 (9.5) million compared to the same period last year, representing a growth rate of 41 percent. Gross profit grew by 65 percent to EUR 3.1 (1.9) million compared to the same quarter of the previous year. The gross margin increased to 23.3 percent compared with 19.9 percent last year. All subsidiaries reported a positive EBITDA during the quarter, which is seen as a sign that the company has turned its course. EBITDA amounted to EUR 392 thousand during the quarter compared to EUR -564 thousand the previous year, corresponding to an EBITDA margin of 2.9 percent. Mangold chooses to raise the revenue estimate for 2023 to around EUR 60,0 (55,8) million given the favorable trend. We are adjusting up the EBITDA estimate as it was significantly better than expected.

CYBER1’s operational costs grew by far less than its revenue, with an increase of 9 percent. This shows the company's ability to keep costs in check and achieve high growth. The cash amounted to EUR 0.79 million at the end of the quarter, corresponding to approximately SEK 9 million. Mangold traces that the company's capital needs are covered given that the company is expected to continue to deliver a positive result.

Mangold increases the target price to EUR 0,044 (0,040) per share. Mangold still sees that the company is undervalued given higher profitability as well as high growth. The company trades at an EV/S multiple of 0.4 on the 2023 expected sales, which we believe is low.