STOCK EXCHANGE: The Helsinki Stock Exchange is in a weak mood for the Christmas holidays – The price of profit warning Dovre plunges

On Monday afternoon, the general index describing the price development of Helsinki Stock Exchange shares was at 9,293.51 points, or about 0.4 percent lower compared to Friday’s closing reading.

Both the stock exchange’s general index and the yield index that takes dividends into account are ending the year in a downward direction. During the Christmas week, the Helsinki Stock Exchange is closed from Tuesday to Thursday.

At the top of the most traded shares was the bank Nordeawhose share was up 0.3 percent.

A software company Vincitin the share continued to fall by 4.7 percent on Monday.

On December 12, the company was targeted by a cyber attack. The perpetrators of the attack also gained access to customer companies through Vincit. At least Champion has said that he was the victim of an attack.

Consulting company Dovre Group issued a negative earnings warning on Monday.

The turnover of the company’s remaining businesses in 2024 is expected to be between 88 and 93 million euros, and the operating result (EBIT) is expected to be between -13 and -15 million euros. The previous EBIT guidance was between -5 and -6 million euros.

On 20 November 2024, Dovre announced the sale of its Project Personnel business (PP) and Norwegian Consulting business to the Swedish NYAB AB. The turnover of Dovre Group’s remaining businesses in 2024 was estimated to be between 88-93 million euros. The company still kept the turnover guidelines unchanged.

The reason for the decreased guidance is the weakened profitability in some of the projects of the Suvic sub-group of the Renewable Energy segment. Dovre Group owns 51 percent of Suvic.

“Despite enhanced management and operational efforts, some of the work is in progress at the start of winter, which increases costs and slows down the progress of projects. The forecast includes estimated losses until the completion of these projects, and the costs around 2025 are associated with uncertainty,” the company says in a press release.

The company’s shares were down 19.4 percent on Monday.

Aallon Group received a boost from Inderes

Analysis house Inderes raised by an accounting firm Aalton Group the target price to EUR 10.50 from EUR 10.00 and the recommendation to buy level from add level.

Aallon Group’s share was up 5.5 percent.

The accounting office announced on Friday Premium Group about acquiring. According to Inderes, the arrangement was made at a very moderate valuation level, and the purchase target is very profitable.

Analysistalo raised Aallon Group’s earnings forecasts, which makes the share’s valuation look attractive.

Metal industry company Afrakin the board has decided on the company’s dividend policy.

The company distributes to its shareholders as a dividend or return of capital the funds determined by the board that exceed the company’s operating and development needs. The target dividend payout ratio for each fiscal year is at least ten percent of Afarak Group’s EBITDA for the entire year.

Afarak’s share was up 9.6 percent.

Weak goals

Inderes counted Bittium the target price to 7.00 euros from 7.50 euros and the recommendation from the reduce level to the increase level.

Bittium’s share was down 4.7 percent today.

On Friday, Bittium published its financial goals and growth strategy for the years 2025-2028.

The goals are almost the same as before: turnover should increase annually by more than 10 percent on average, and operating profit should be more than 10 percent of turnover. Previously, the profitability target was exactly 10 percent.

Inderes sees the operating profit target as being sluggish compared to the analysis house’s forecasts for the next few years, where an average operating profit level of 15.5 percent was expected. As a result, Inderes changed its forecasts.