Riber

EU: RIB

€32.1m market cap

€1.51 last close

Riber designs and produces molecular beam epitaxy (MBE) systems and evaporator sources and cells for the semiconductor industry. This equipment is essential for the manufacturing of compound semiconductor materials that are used in numerous high-growth applications.

Investment summary

A strong uptick in MBE system deliveries only partly offset a reduction in evaporator revenue during H119, resulting in a 17% y-o-y drop in Riber’s sales overall and a shift from an operating profit of €2.8m in H118 to a €0.5m operating loss. We see scope for share price appreciation as investors gain confidence that Riber can convert the strong MBE system order book into a sustainable profit recovery.

Y/E Dec
Revenue (€m)
EBITDA (€m)
PBT (€m)
EPS (c)
P/E (x)
P/CF (x)
2017A 30.5 5.9 4.0 12.82 11.8 N/A
2018A 31.3 3.3 2.0 6.59 22.9 N/A
2019E 35.3 2.4 1.5 4.98 30.3 N/A
2020E 37.7 3.9 3.0 10.41 14.5 N/A
Industry outlook

The MBE order backlog at end H119 totalled €21.5m, comprising 13 systems, six of which are the larger production machines. Riber expects to deliver eight or nine systems during H219, underpinning our FY19 revenue estimates. We have cut our FY19 PBT estimate by 59% to reflect the low H119 gross margin. Given the lack of global investment in OLED capacity, we have reduced our FY20 estimate for evaporator sales, balancing this with an uplift in MBE system sales, which are at a lower gross margin, thus reducing our FY20 PBT estimate by 33%.

Last updated on 14/11/2019
Sector
TMT
Share price graph
Balance sheet
Forecast net cash (€m) 5
Forecast gearing ratio (%) N/A
Price performance
%
1m
3m
12m
Actual 25.8 35.8 (23.1)
Relative* 20.6 21.4 (32.8)
52-week high/low €2.2/€1.1
*% relative to local index
Key management
Philippe Ley CEO
Michel Picault Chairman of Management Board