Thin Film Electronics — First product design taped out

Ensurge Micropower (OSE: ENSU)

Last close As at 10/10/2024

NOK0.30

0.00 (0.00%)

Market capitalisation

814m

More on this equity

Research: TMT

Thin Film Electronics — First product design taped out

Following the strategic shift announced in January 2020, Thinfilm is using its proven printed technology to develop solid-state lithium microbatteries with the intention of manufacturing them in volume in its roll-to-roll (R2R) production facility. Consistent with this strategy, earlier this week the company announced it had taped out its first product design, which is optimised for form-factor constrained applications, and signed technology evaluation agreements with potential customers and partners.

Analyst avatar placeholder

Written by

TMT

Thin Film Electronics

First product design taped out

Commercialisation update

Tech hardware & equipment

28 January 2021

Price

NOK0.60

Market cap

NOK625m

Net debt ($m) at end September 2020 (excluding $1.6m restricted cash and $12.5m financial lease liabilities)

7.8

Shares in issue

1,041.2m

Free float

84.6%

Code

THIN

Primary exchange

OSLO

Secondary exchange

OTCQB

Share price performance

Business description

Thin Film Electronics’ solid-state lithium battery technology combines advanced energy cell design with proprietary materials and manufacturing innovation to produce thin, flexible batteries that can power safer and more capable hearables and wearable devices.

Analyst

Anne Margaret Crow

+44 (0)20 3077 5700

Thin Film Electronics is a research client of Edison Investment Research Limited

Following the strategic shift announced in January 2020, Thinfilm is using its proven printed technology to develop solid-state lithium microbatteries with the intention of manufacturing them in volume in its roll-to-roll (R2R) production facility. Consistent with this strategy, earlier this week the company announced it had taped out its first product design, which is optimised for form-factor constrained applications, and signed technology evaluation agreements with potential customers and partners.

Year end

Revenue ($m)

EBITDA

($m)

PBT*
($m)

EPS*
($)

DPS
($)

P/E
(x)

12/16**

3.8

(36.9)

(42.7)

(0.07)

0.00

N/A

12/17**

5.9

(50.9)

(54.5)

(0.06)

0.00

N/A

12/18**

3.4

(49.3)

(54.3)

(0.93)

0.00

N/A

12/19**

1.2

(30.6)

(35.9)

(0.61)

0.00

N/A

Note: *PBT and EPS are normalised, excluding amortisation of acquired intangibles, exceptional items and share-based payments. **Discontinued business.

The new ultra-thin microbattery product is for applications such as hearing aids, earbuds and wearable medical devices where the high energy density, enhanced cycling and improved safety features that Thinfilm’s technology provides should be able to command a premium compared with conventional batteries. The product has been defined following discussions with potential customers and partners, some of which it has already signed technology evaluation agreements with. The company is also engaging with potential customers for sports and fitness wearables and defence applications.

Now the company has defined its first product and established a provisional route to volume revenues, commercialisation is entering a new phase. This is focusing on refining the individual processing steps to increase energy density, ensure consistently high cycle life and enable production in high volumes. In parallel, the operations team has started a programme to transfer process technology from the sheet-based production line to the much higher volume R2R line, which was previously mothballed. Management’s intention is to have the R2R line able to support anticipated volume delivery of batteries to customers and partners later this year and into 2022.

Thinfilm raised $3.4m (gross) during May and June and a further $6.7m (gross) between July and September. In December management estimated the cash raised by these programmes, including partial exercise of warrants, extended the company’s cash runway through Q121, with further exercise of warrants issued as part of these programmes potentially extending the runway deeper into FY21.

General disclaimer and copyright

This report has been commissioned by Thin Film Electronics and prepared and issued by Edison, in consideration of a fee payable by Thin Film Electronics. Edison Investment Research standard fees are £49,500 pa for the production and broad dissemination of a detailed note (Outlook) following by regular (typically quarterly) update notes. Fees are paid upfront in cash without recourse. Edison may seek additional fees for the provision of roadshows and related IR services for the client but does not get remunerated for any investment banking services. We never take payment in stock, options or warrants for any of our services.

Accuracy of content: All information used in the publication of this report has been compiled from publicly available sources that are believed to be reliable, however we do not guarantee the accuracy or completeness of this report and have not sought for this information to be independently verified. Opinions contained in this report represent those of the research department of Edison at the time of publication. Forward-looking information or statements in this report contain information that is based on assumptions, forecasts of future results, estimates of amounts not yet determinable, and therefore involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of their subject matter to be materially different from current expectations.

Exclusion of Liability: To the fullest extent allowed by law, Edison shall not be liable for any direct, indirect or consequential losses, loss of profits, damages, costs or expenses incurred or suffered by you arising out or in connection with the access to, use of or reliance on any information contained on this note.

No personalised advice: The information that we provide should not be construed in any manner whatsoever as, personalised advice. Also, the information provided by us should not be construed by any subscriber or prospective subscriber as Edison’s solicitation to effect, or attempt to effect, any transaction in a security. The securities described in the report may not be eligible for sale in all jurisdictions or to certain categories of investors.

Investment in securities mentioned: Edison has a restrictive policy relating to personal dealing and conflicts of interest. Edison Group does not conduct any investment business and, accordingly, does not itself hold any positions in the securities mentioned in this report. However, the respective directors, officers, employees and contractors of Edison may have a position in any or related securities mentioned in this report, subject to Edison's policies on personal dealing and conflicts of interest.

Copyright: Copyright 2021 Edison Investment Research Limited (Edison).

Australia

Edison Investment Research Pty Ltd (Edison AU) is the Australian subsidiary of Edison. Edison AU is a Corporate Authorised Representative (1252501) of Crown Wealth Group Pty Ltd who holds an Australian Financial Services Licence (Number: 494274). This research is issued in Australia by Edison AU and any access to it, is intended only for "wholesale clients" within the meaning of the Corporations Act 2001 of Australia. Any advice given by Edison AU is general advice only and does not take into account your personal circumstances, needs or objectives. You should, before acting on this advice, consider the appropriateness of the advice, having regard to your objectives, financial situation and needs. If our advice relates to the acquisition, or possible acquisition, of a particular financial product you should read any relevant Product Disclosure Statement or like instrument.

New Zealand

The research in this document is intended for New Zealand resident professional financial advisers or brokers (for use in their roles as financial advisers or brokers) and habitual investors who are “wholesale clients” for the purpose of the Financial Advisers Act 2008 (FAA) (as described in sections 5(c) (1)(a), (b) and (c) of the FAA). This is not a solicitation or inducement to buy, sell, subscribe, or underwrite any securities mentioned or in the topic of this document. For the purpose of the FAA, the content of this report is of a general nature, is intended as a source of general information only and is not intended to constitute a recommendation or opinion in relation to acquiring or disposing (including refraining from acquiring or disposing) of securities. The distribution of this document is not a “personalised service” and, to the extent that it contains any financial advice, is intended only as a “class service” provided by Edison within the meaning of the FAA (i.e. without taking into account the particular financial situation or goals of any person). As such, it should not be relied upon in making an investment decision.

United Kingdom

This document is prepared and provided by Edison for information purposes only and should not be construed as an offer or solicitation for investment in any securities mentioned or in the topic of this document. A marketing communication under FCA Rules, this document has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and is not subject to any prohibition on dealing ahead of the dissemination of investment research.

This Communication is being distributed in the United Kingdom and is directed only at (i) persons having professional experience in matters relating to investments, i.e. investment professionals within the meaning of Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005, as amended (the "FPO") (ii) high net-worth companies, unincorporated associations or other bodies within the meaning of Article 49 of the FPO and (iii) persons to whom it is otherwise lawful to distribute it. The investment or investment activity to which this document relates is available only to such persons. It is not intended that this document be distributed or passed on, directly or indirectly, to any other class of persons and in any event and under no circumstances should persons of any other description rely on or act upon the contents of this document.

This Communication is being supplied to you solely for your information and may not be reproduced by, further distributed to or published in whole or in part by, any other person.

United States

Edison relies upon the "publishers' exclusion" from the definition of investment adviser under Section 202(a)(11) of the Investment Advisers Act of 1940 and corresponding state securities laws. This report is a bona fide publication of general and regular circulation offering impersonal investment-related advice, not tailored to a specific investment portfolio or the needs of current and/or prospective subscribers. As such, Edison does not offer or provide personal advice and the research provided is for informational purposes only. No mention of a particular security in this report constitutes a recommendation to buy, sell or hold that or any security, or that any particular security, portfolio of securities, transaction or investment strategy is suitable for any specific person.

Frankfurt +49 (0)69 78 8076 960

Schumannstrasse 34b

60325 Frankfurt

Germany

London +44 (0)20 3077 5700

280 High Holborn

London, WC1V 7EE

United Kingdom

New York +1 646 653 7026

1185 Avenue of the Americas

3rd Floor, New York, NY 10036

United States of America

Sydney +61 (0)2 8249 8342

Level 4, Office 1205

95 Pitt Street, Sydney

NSW 2000, Australia

More on Ensurge Micropower

View All

Latest from the TMT sector

View All TMT content

Research: TMT

Artec technologies — Positive FY20 progress, focus on MULTIEYE

In a post year-end trading update, artec reported strong sales growth, with FY20 revenues rising 50% y-o-y to €3.2m (FY19: €2.0m), marginally below consensus (€3.25m). Management expects a significantly improved FY20 profit figure y-o-y when it reports its FY20 results. 24% of FY20 revenues are recurring, with contract terms of up to four years giving increasing forward visibility. Two-thirds of sales came from the security side of the business, which continues to show good momentum, while the media business suffered from contract delays due largely to uncertainty around the COVID-19 pandemic. Management remains confident in the outlook for both media and security segments, with security its key focus for FY21.

Continue Reading

Subscribe to Edison

Get access to the very latest content matched to your personal investment style.

Sign up for free