The company is struggling to make a profit in their main business, envelopes, very competitive and declining. They introduced paper bags with limited success. They seem to have some success with light packaging. Since the company has a P/S=0.1 there is high potential if they manage to go profitable, but not sure if their business segment will allow that or if competition will continue to erase all margins.

Bong Ljungdahl producer of envelopes (70%) and paper packaging materials (30%) is mainly active in Scandinavia & Baltic (15%), Central Europe incl. DE (30%) and rest of Europe. After a 20% increase in revenue the company turned profitable in 2022. Operating margins are low 5-7%, although the company managed to grow with slightly improved margins (most likely from the weaker EUR/SEK). Q4'2022 TTM earnings per share are 0.21kr resulting in a PE 5x at price of 1.00kr. In the report management also announced that orders declined. Even with 5x PE the risks are too high with such low profit margins.