CTEK

In this fundamental analysis report, analysts Axel Hockman and Edvin Ganic provide an in-depth
analysis of CTEK AB, a Swedish premium battery charging and power management specialist with a
leading position in low-voltage charging and selective exposure to EV charging infrastructure. The
market materially underestimates the resilience and earnings power of CTEK’s low-voltage business,
which represents the majority of group revenue and delivers structurally high gross margins, while
overstating near-term headwinds in EV charging. Following the exit of the loss-making General
Motors contract and the completion of capital-intensive EVSE development programs, the EVSE
segment is positioned to recover toward break-even by 2027. Combined with a premium mix shift and
expansion into adjacent product categories, EBIT margins are expected to expand from (4.0%) in
2024 to 13% by 2027. Based on an equally weighted DCF and peer valuation at 8.1x 2027
EV/EBIT, a target price of SEK 20.8 is implied, corresponding to an upside of 58%.

Investment Thesis
● Low-voltage charging is the value engine, delivering stable growth and structurally high margins
● Premium mix shift and operating leverage drive meaningful EBIT margin expansion
● EV charging downside is capped, with asymmetric upside as the segment recovers toward break-
even