Last close As at 05/08/2026
EUR34.18
▲ −0.72 (−2.06%)
Market capitalisation
EUR699m
Research: TMT
PVA TePla (PVA) hosted its first capital markets day last week. As expected, it was a deep dive into the company’s activities and explained the underpinning of the mid-term (FY28) target of doubling revenues to c €500m, which PVA communicated in March. Organic growth, partly driven by capex of up to €60m with a peak in 2024 or 2025, and M&A are the means to reach the new target. The strategy will be supported by a new financing package, which gives the company more firepower if it wants to make a bigger acquisition.
PVA TePla |
Capital markets day |
Technology |
23 May 2024 |
Share price performance
Business description
Analyst
PVA TePla is a research client of Edison Investment Research Limited |
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PVA TePla (PVA) hosted its first capital markets day last week. As expected, it was a deep dive into the company’s activities and explained the underpinning of the mid-term (FY28) target of doubling revenues to c €500m, which PVA communicated in March. Organic growth, partly driven by capex of up to €60m with a peak in 2024 or 2025, and M&A are the means to reach the new target. The strategy will be supported by a new financing package, which gives the company more firepower if it wants to make a bigger acquisition.
Underpinning the FY28 revenue target |
Year |
Revenue |
PBT* |
EPS* |
DPS |
P/E |
Yield |
12/22 |
205.2 |
24.6 |
0.85 |
0.0 |
22.4 |
N/A |
12/23 |
263.4 |
36.3 |
1.22 |
0.0 |
15.6 |
N/A |
12/24e |
284.2 |
42.9 |
1.44 |
0.0 |
13.2 |
N/A |
12/25e |
305.9 |
47.8 |
1.60 |
0.0 |
11.9 |
N/A |
Note: *PBT and EPS are normalised, excluding amortisation of acquired intangibles, exceptional items and share-based payments.
PVA’s well-attended capital markets day provided new insights on its core competencies and the way it wants to expand to reach €500m in revenue by 2028. FY24 guided revenue growth of 6.3% at the midpoint of the range and a similar growth rate in FY25 are moderate given the historical profile, as PVA is investing in future growth, with projected investments of up to €60m. These investments are aimed at expansion in North America, innovation (with the technology hub, among other things, exploring new areas of growth like silicon carbide processes), production capacity and IT. M&A is also an integral part of the strategy.
To finance its growth strategy, PVA has secured a new, larger credit facility and structure. The previous package included a financing facility of €160m and utilised guarantee facilities of €95m (€255m in total). The latter are intended as security for the providers of pre-paid orders. The total financing package has increased to €455m. PVA is not drawing on its credit facilities at the moment and has a net cash position. With management guidance unchanged, we have made no changes to our estimates.
We also gained more insight into PVA’s technology portfolio at the capital markets day. In materials technology, PVA’s strengths are the ability to handle pressure, temperature and graphite in a very precise manner in a furnace to create seamless bonds or uniform coatings for complex and/or high-density metal applications. In addition to semiconductors (like silicon and silicon carbide crystal growing), there are advanced materials applications in solar, heavy industry, wind turbines and aerospace. In metrology, which originated from the need for precise measurements in the materials technology activities, speed, percentage error detection and non-destructive methods are most important. Also, PVA’s main strength is metrology for materials, for instance strains in wafers or consistency of silicon ingots or silicon carbide boules. Customers vary from the top three worldwide chipmakers to wafer fabs. Competition is mainly from Hitachi and Nordson.
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Research: Healthcare
AFT Pharmaceuticals’ FY24 results demonstrated record earnings and sales, with 24.8% year-on-year sales growth. Revenues of NZ$195.4m were driven by strong domestic market performance (+13.6%) and solid traction from international (Asia and RoW) markets (+ 108% y-o-y, supported by a NZ$6m milestone payment from US partner Hikma). Investments in future growth (R&D and marketing) and sales-mix effects slightly affected margins adversely (operating margin of 12.4% in FY24 vs our expectation of 12.8%) but we anticipate the upfront investments will provide a revenue uptick from FY26. AFT’s balance sheet remains strong, allowing for a dividend announcement for FY24 (1.6c/share; c 10% payout ratio) and a reduction in debt, both positive signs for investors. We tweak our estimates for the results and FY25 guidance (operating profit of NZ$22–25m, excluding any licence payments), resulting in our valuation adjusting to NZ$725.5m or NZ$6.92/share (from NZ$698m or NZ$6.65/share).