XP Power


£697.7m market cap

3590p 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

XP Power’s Q1 trading update confirmed that revenues increased 4% y-o-y/q-o-q and the Chinese facility has returned to normal staffing levels. Strong demand, mainly from healthcare customers, saw a 25% q-o-q increase in orders and a Q1 book-to-bill of 1.49x. Despite strong Q1 demand, the level of uncertainty surrounding both supply and demand for the rest of the year has caused XP to cancel its previously proposed Q419 dividend in order to preserve cash. We maintain our revenue forecasts, but factor in higher costs in FY20 and remove our Q419 and Q120 dividend estimates.

Y/E Dec
Revenue (£m)
PBT (£m)
EPS (p)
P/E (x)
P/CF (x)
2018A 195.1 49.2 41.2 172.8 20.8 25.5
2019A 199.9 45.4 33.2 145.5 24.7 14.8
2020E 209.2 48.5 36.1 154.3 23.3 19.1
2021E 218.2 55.3 42.8 179.1 20.0 14.8
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 04/06/2020
Share price graph
Balance sheet
Forecast net debt (£m) 35.6
Forecast gearing ratio (%) 23
Price performance
Actual 21.7 9.5 50.2
Relative* 10.2 18.4 69.0
52-week high/low 3820.0p/2010.0p
*% relative to local index
Key management
James Peters Chairman
Duncan Penny CEO
Gavin Griggs Chief Financial Officer & Executive Director

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