I have been thinking about Harvia’s long-term prospects from an investor’s perspective (the company is by far the largest holding in my portfolio, so I find myself thinking about it even during these quieter times). Specifically, I’ve been reflecting on the reasons why the company has earned its place in my portfolio, and with such a high weight at that.
Thinking a bit further ahead, 5–10 years into the future, my “in-depth analysis” is, in its simplicity:
Harvia will be the leading player in the sauna industry, with good profitability and reasonable growth.
Growth will come both organically (averaging around 5–10% per year) and through a few acquisitions along the way. Regarding profitability, the company has a stellar track record; the concept works, and as long as they stick to it, there shouldn’t be any issues regarding profitability.
Brand building and maintenance will continue. I don’t have a clear grasp of how Harvia’s key brands compare to competitors or how “strong” the brands actually are. It would be great to hear more about this. For example, @Rauli_Juva, do you have any intuition on this? I don’t have time to wade through the reports right now; have any comparisons of brand strength relative to competitors been made (other than just stating that the brands are strong)?
We’ll soon hear how the latest quarter went, and the management will comment on the future outlook at the same time.