XP Power


£879.6m market cap

4480p last close

XP Power is a developer and designer of power control solutions with production facilities in China, Vietnam and the US, and design, service and sales teams across Europe, the US and Asia.

Investment summary

In its trading update for the five months to the end of May (5M20), XP Power confirmed that it continues to see strong demand from semiconductor and healthcare customers. Orders received for 5M20 of £128.0m were 52% higher y-o-y (£73.1m in Q120 (+34%), £54.9m in April/May (+84%)). With demand from the healthcare sector likely to moderate in H2, and continued uncertainty in other end markets, we maintain our revenue forecasts for FY20/21. We reduce FY20e EPS by 2.7% to reflect short-term increases in air freight costs. The company will report H120 results on 3 August.

Y/E Dec
Revenue (£m)
PBT (£m)
EPS (fd) (p)
P/E (x)
P/CF (x)
2018A 195.1 49.2 41.2 172.8 25.9 N/A
2019A 199.9 45.4 33.2 145.5 30.8 N/A
2020E 220.0 51.1 37.7 150.9 29.7 N/A
2021E 227.9 55.5 41.7 167.0 26.8 N/A
Industry outlook

XP supplies four end-markets: healthcare, industrial, semiconductors and technology, across Europe, North America and Asia. The industrial segment is relatively fragmented, but the company sees demand across various applications. The healthcare business continues to gain market share, with corporate approvals from the major suppliers in place. The semiconductor segment is the most cyclical, tracking the capex requirements of semiconductor manufacturers.

Last updated on 11/08/2020
Share price graph
Balance sheet
Forecast net debt (£m) 0
Forecast gearing ratio (%) 0
Price performance
Actual 23.4 52.9 106.5
Relative* 21.4 45.7 138.4
52-week high/low 4480.0p/2130.0p
*% relative to local index
Key management
James Peters Chairman
Duncan Penny CEO
Gavin Griggs Chief Financial Officer & Executive Director

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