• SEK 40m Intercom order from existing EU customer
• Strong order intake, ATH backlog & margin expansion ahead
• 63x EV/EBIT 2023e, 39x 2024e for +20% sales CAGR

Order momentum takes off strongly in 2023

Invisio continues its steady stream of order announcements with today's order of SEK 40m from a European NATO country. The order is for the Intercom system, and is the third order from the same customer. The first two orders were SEK 13m and 14m each. The Intercom system is a new innovative solution that enables simple and effective internal communication in vehicles, boats and helicopters, at a cost that is below traditional solutions, according to Invisio. This means that the order momentum continues after a strong 2022. Most of the systems will be delivered in Q1'23 and at the beginning of Q2'23, which supports near-term sales estimates. Invisio also estimates that the customer's need may lead to further requests in the near future.

We expect high sales growth ahead

As of Q3'22, Invisio had an ATH order backlog of SEK 616m, vs a more normal level of SEK 100-200m. With relatively near-term deliveries of the order backlog, growth estimates are expected to be high and now further de-risked. We estimate 45% organic growth in Q4'22e and continued 40% in Q1-Q2'23. With a scalable business model, we estimate EBIT margins to expand significantly in 2023e to 13%, up from 5% in 2022e. The share trades at 63x EV/EBIT 2023e and 39x 2024e, and we expect to see continued positive order momentum, strong sales growth and margin expansion ahead.