Midsummer reported what we consider a relatively neutral report. Total revenues widened from SEK9.7m to SEK14.7m, but net sales narrowed from SEK17.8m to SEK14.7m Y/Y. The key reason was that the company is switching from the relatively expensive production at its Swedish plant to provide the market with products from its more effective factory in Bari, where production will scale up during 2024. 2023 was taken up with the company’s transition into a large-scale producer and full-year EBIT came in at SEK-200.7m (-93.0 in 2022). The result was, however, in line with adjusted EBIT in 2022, a year that included a large contribution from the Italian state. According to the company, all production equipment for the Italian factory has now been delivered and all documentation to the Italian authorities submitted, suggesting that it is only a matter of time before the final contribution is paid out.

We leave our estimates unchanged on the whole. Our 2024 scenario is still based on the Italian factory scaling up production during the year, with the company able to sell its products as its output increases. Even though the likelihood is increasing that the company can receive EU funding for further extensive scaling-up of 200 MW (versus current production of 1 MW and the 50 MW planned), we do not include this in our forecasts as the counterpart financing requirement remains.

Fair value unchanged – outlook for solar energy remains extremely favourable