Bayerische shares surge by 70% - mimicking Aixtron's trajectory
Suess MicroTec's Game-Changing Stride
Things are heating up for the Bavarian chip provider standing tall at Munich's threshold! Since mid-October, the company's stock has rocketed by an impressive 70%. The star of the show? None other than Suess MicroTec. A key player in the semiconductor market, it's known for delivering equipment and process solutions, like photoresist coating on silicon wafers and chip further processing.
You guessed it! Futuristic developments around electromobility and self-driving vehicles are sending a phenomenal boost to the company's growth. Key clients like semiconductor manufacturer Infineon and the world's leading chipmaker, Taiwan Semiconductor, are standing firmly by its side.
The Munich-based company recently revealed some eye-catching financials. Revenue for the fiscal year is set to hit approximately 300 million euros, surpassing the average market forecast of 272 million euros. You won't believe this—the fourth quarter alone brought in equipment worth over 100 million euros!
But how does Suess MicroTec stack up against a fellow Aachen-based player, Aixtron? Aixtron is projecting a turnover of around 500 million euros in 2022, boasting a forecasted EBIT margin of over 20%. In comparison, Suess MicroTec is pegging an EBIT margin of roughly 9% for the fiscal year. No worries, though—CEO Bernd Schulte has a plan!
By embracing new growth markets, gaps with Aixtron can be bridged. There's a keen focus on silicon wafer cleaning and producing silicon carbide chips, which hold the key to improved range in electric vehicles. Fingers crossed for these plans to unfold, as it could mean Suess MicroTec giving Aixtron a serious run for its money!
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Insights:To stay competitive with Aixtron in the semiconductor arena, Suess MicroTec is pushing forward with various growth strategies. Among them are:
- Steady sales growth, with a notable 31.8% YoY revenue increase in Q1 2025, thanks to its Advanced Backend Solutions and Photomask Solutions segments.
- Segmented business growth, with significant growth in the Advanced Backend Solutions segment (47.0% YoY increase) and an uptick in the Photomask Solutions segment (8.6% YoY increase).
- Operational efficiency, despite a slight drop in the gross profit margin (37.9%), has been improved by smart cost management and curbing the rise in SG&A expenses.
- Global expansion, with a new production site planned for Zhubei, Taiwan, set to launch in the second half of 2025 to bolster its presence in Asia.
- Strong market position, with over 8,000 installed systems worldwide, positioning Suess MicroTec to leverage its existing client base and global expansion.
Outlook:The company is confident in its 2025 guidance, despite global trade challenges, expecting sales between €470 million and €510 million, with a gross profit margin of 39%-41% and an EBIT margin of 15%-17%. The investment in innovative technologies, particularly increased production capacity for UV projection scanners, shows its commitment to staying ahead in the game.
- Suess MicroTec, a leader in the semiconductor industry, has partnered with key clients such as Infineon and Taiwan Semiconductor in finance, fostering a technological partnership that has played a significant role in the company's growth.
- With an estimated revenue of €470 million to €510 million for 2025, Suess MicroTec aims to elevate its presence in the global market, particularly through the expansion of UV projection scanner technology, a critical solution in the ever-evolving finance and technology sectors.
