XP Power (LSE: XPP)

Currency in GBP

Last close As at 26/05/2023

GBP21.35

−75.00 (−3.39%)

Market capitalisation

GBP421m

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

XP supplies three end-markets: healthcare, industrial technology and semiconductor manufacturing, across Europe, North America and Asia. The industrial technology 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.

Sector

TMT

Equity Analyst

Key Management

  • David Stibbs

    Interim CFO

  • Gavin Griggs

    CEO

  • James Peters

    Chairman

Balance Sheet

Forecast net debt (£m)

144.4

Forecast gearing ratio (%)

97

Share Price Performance

Price Performance
% 1M 3M 12M
Actual (1.8) (12.3) (35.1)
Relative 1.9 (8.7) (34.8)
52 week high/low 3290.0p/1464.0p

Financials

XP Power confirmed that trading in Q123 was in line with its expectations. As expected, order intake declined from the record level a year ago, reflecting an improving supply chain and softening end-market demand, particularly for semiconductor equipment and industrial technology. Revenue and profitability were higher than a year ago. The strong backlog provides good visibility for the remainder of the year and we expect it to gradually reduce as current year orders are shipped and customers revert to pre-pandemic ordering patterns. We maintain our forecasts.

Y/E Dec Revenue (£m) EBITDA (£m) PBT (£m) EPS (fd) (p) P/E (x) P/CF (x)
2021A 240.3 55.5 43.8 176.3 12.1 7.5
2022A 290.4 56.4 38.0 160.1 13.3 7.4
2023E 309.5 65.3 37.3 152.3 14.0 6.4
2024E 316.8 71.8 43.3 174.6 12.2 5.8

Research

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XP Power — Record orders in FY21

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XP Power — A record year

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XP Power – executive interview

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XP Power — A testing year

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Executive interview – XP Power

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XP Power — Strategy evolution

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XP Power — Update 7 October 2016

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XP Power — Update 25 July 2016

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XP Power — Update 11 April 2016

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XP Power — Update 7 January 2016

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Executive Interview – XP Power

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Executive Interview – XP Power

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