Company profile - ÅAC Microtec feature image - 28062019 - JPG

AAC Microtec

OMX: AAC

SEK367m market cap

SEK3.81 last close

Based in Sweden, ÅAC Microtec is a world leader in nanosatellite end-to-end solutions following the January 2018 merger with Clyde Space in Scotland. The merged company also supplies a range of technology components to other small satellite manufacturers globally.

Investment summary

Following the purchase of Clyde Space, ÅAC Microtec is at the forefront of the rapidly growing and revolutionary market for small satellites. As nanosatellite build rates and deployments rise sharply over the next decade, increasing systems supply and platform revenues should be enhanced by operational and service revenues. The new, experienced CEO needs to steer ÅAC Microtec through the ramp up phase. The 2 for 5 rights issue at SEK3 per share to raise gross proceeds of SEK82.5m positions the company to take advantage of opportunities in new space as they arise. Our estimates are now adjusted for the rights issue but are under revision following H119 results.

Y/E Dec
Revenue (SEKm)
EBITDA (SEKm)
PBT (SEKm)
EPS (öre)
P/E (x)
P/CF (x)
2017A 13.3 (21.4) (27.3) (75.00) N/A N/A
2018A 77.9 (28.5) (37.2) (48.18) N/A N/A
2019E 120.8 0.9 (8.4) (9.30) N/A N/A
2020E 200.4 33.6 27.7 25.84 14.7 14.5
Last updated on 13/09/2019
Industry outlook

Of over 1,000 nanosatellites launched since 1998, AAC Clyde Space is represented on 30–40%. Over the next five years around 3,000 nanosatellites should be launched as technology development extends the applications for low earth orbit (LEO) constellations, especially for communications. AAC Clyde Space has the capacity in Glasgow and Sweden to facilitate such expansion as well as develop a “satellite as a service” offering, while increasing sales of subsystems to third-party satellite providers.

Last updated on 13/09/2019
Sector
Industrials
Share price graph
Balance sheet
Forecast net cash (SEKm) 87.6
Forecast gearing ratio (%) N/A
Price performance
%
1m
3m
12m
Actual (14.8) (24.0) (21.7)
Relative* (19.7) (26.5) (25.2)
52-week high/low SEK6.0/SEK2.6
*% relative to local index
Key management
Mats Thideman CFO
Rolf Hallencreutz Chairman of the board