NOTE AB (publ) (NOTE.ST) fair value

ACCE thesis

NOTE AB makes power supplies, electronic manufacturing services and enclosures for industrial and medical customers, selling mostly to Nordic and European OEMs that need custom power and assembly rather than off-the-shelf parts. Its edge is that switching a power supply or contract manufacturer is slow and costly for the customer, which gives NOTE sticky, multi-year programmes, though its 14.2% gross margin shows how thin the value added is on the manufacturing side. Revenue growth of 19.9% is the headline, and the near-term question is whether that holds as the forward P/E of 15.5 against a trailing 19.8 implies earnings expansion is expected. At a 9.5% operating margin and 14.8% ROE, the business is profitable but not exceptional, so the case rests on volume growth and mix shifting toward higher-value power products rather than on pricing power. The company is small and unindexed at a 4.9B SEK market cap, which keeps the stock less covered and potentially less liquid, so it merits a deeper look mainly to test whether margins can rise with growth.