Fischer Advanced Composite Components (FACC) is positioned to leverage the ramp up in civil aircraft production volumes. It is a pure play, Tier 1 supplier of composite structures and components to the civil aerospace and aeroengine segments. The company is focused on delivering market share growth across its product segments, supported by a healthy order backlog and a clear technological edge. The executive team is building confidence and executing the production plan, with recovered margins and improved cashflow.
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FACC |
Aerospace and defence |
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Shaping future mobility
Fischer Advanced Composite Components (FACC) is positioned to leverage the ramp up in civil aircraft production volumes. It is a pure play, Tier 1 supplier of composite structures and components to the civil aerospace and aeroengine segments. The company is focused on delivering market share growth across its product segments, supported by a healthy order backlog and a clear technological edge. The executive team is building confidence and executing the production plan, with recovered margins and improved cashflow.
Lightness and efficiency
FACC was established in Austria and has operated as a niche specialist in the supply of carbon composite structures to the aircraft industry for nearly 30 years. It was taken over by the Chinese aerospace group AVIC in 2009 and was the subject of an IPO in 2014. Through rebuilding brand image and credibility, the business has gained market share. The company has invested in technology and automation of its production capacity.
Commercial programme ramp up
FACC technology is installed on almost all modern aircraft platforms, as the proportion of composite materials has increased on aircraft to reduce weight. With 50% of structural components on the newest generation of widebody aircraft (A350, B787) made from composites, compared to 28% on the A380 and just 3% in 1970, shipset values have increased. The shipset value for an A350 is €1.5m, for example. As production rates continue to increase, revenue growth for FACC should remain above 10%, with potential for margin expansion through improved pricing, operational leverage and cost reductions. In addition, FACC is seeing a shift towards the new growth markets, including China where it benefits from the involvement of its largest shareholder.
Valuation: Attractive growth trends
FACC is looking to deliver single-digit percentage revenue growth in FY19, with an ongoing goal to drive market share up in all segments. Its Vision 2020 strategy is working towards a FY21 revenue target of €1bn. In addition, we believe that civil aerospace market dynamics support the expectation of higher earnings and cashflow, indicating the potential for investors.
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Consensus estimates
Source: FACC, Bloomberg |
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Research: TMT
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