Sparks - PVA TePla

On its  Capital Market  Day that was organised in London on 2 September, PVA TePla provided a further justification of its mid-term  revenue target (€500m by 2028) and added margin targets (gross margin 38-43% and 20-25% EBITDA). High margin Acoustic measurement systems especially used in leading edge semiconductors, are the most important growth driver in the Metrology division with an expected CAGR of 18-22% to 2028. Metrology sales already totalled €98m in 2024, which is more than we expected. Material Solution sales were still higher at €172m and are expected to increase at a much slower pace led by the Synthesis activities (crystal growin) with an expected CAGR of 5-11%. By next year, PVA expects to have 8″ SiC technology available while the market for Si crystal pullers is expected to catch up again by end 2026/2027. R&D costs are expected to increase to 10% of sales in the medium term (from 4.3% in 2024) and Distribution and Administrative costs are expected to decrease to ~11% (from 14.4% in 2024) of sales. Capex in production expansion and R&D will decrease to €14m from €25m in 2024. On current consensus, PVA is trading on a P/E of 25.1x FY26e and 18.6x FY27e.