Västra Hamnen Corp. Finance

• Net sales in Q3 fell short of our estimates
• High margin business areas continue to thrive
• We maintain our valuation interval SEK 46.60 – 62.80 SEK per share

Magle Chemoswed’s Q3 2022 sales came in below our estimates as manufacturing revenue had a weak quarter. The effects of the sales dip in the CDMO category were mitigated by a strong quarter for royalty sales which resulted in a healthy bottom line. Magle Chemoswed continues to shift towards high-margin business areas such as DSM sales and royalties combined with a solid cost control. During the quarter, the company has initiated an investment program to increase production capacity for proprietary products.

The full report is available here.