The chip industry supplier Aixtron is sticking to its annual targets despite a decline in orders in the third quarter.
The demand for efficient power electronics remains unbroken, which is why a correspondingly higher order intake is expected for the final quarter, the company announced on Thursday in Herzogenrath. Sales and earnings before interest and taxes (EBIT) increased significantly in the third quarter, although the same period last year was characterized by delivery delays due to the lack of export licenses. The mechanical engineering company missed the analyst expectations provided by the MDAX group in the past quarter.
However, there were still significant losses for the shares in the morning. AIXTRON shares initially fell significantly via XETRA. As the market progressed, however, the shares turned positive and were temporarily 0.111 percent higher at 28.55 euros. A slide below 27.71 euros would mean a low since July – after they had climbed to a multi-year high of a good 37 euros in August. Concerns about a possible slowdown in demand had recently weighed on the price.
Sales rose by 86 percent to 165 million euros in the three months from July to the end of September compared to the same period last year. Of this, 27 percent remained as earnings before interest and taxes. In absolute terms, this means that the operating result has almost tripled to 45.3 million euros, despite high research and development costs and a continued strong increase in personnel. The bottom line is that AIXTRON earned 39.6 million euros, twice as much as a year ago.
For the year as a whole, Aixtron boss Felix Grawert continues to calculate sales of 600 to 660 million euros and an operating profit margin of 25 to 27 percent. But this requires a little spurt in the remaining months. After nine months, revenues of almost 416 million euros and a margin of 22 percent are in the books.
And the company also has to stretch its incoming order target. Due to a decline in orders in the third quarter, incoming orders after nine months are at a good 436 million euros, only slightly above the level of a year ago and well below the annual target of 620 to 700 million euros. Analysts are currently expecting around 660 million.
Looking at its annual forecasts, Grawert is likely to expect continued good demand for the still new G10-GaN systems for the production of semiconductor wafers based on gallium nitride (GaN). According to the company, the systems work more efficiently and thus reduce costs for chip companies.
Chips made of GaN and silicon carbide (SiC) are becoming increasingly popular because they are more energy-efficient and temperature-resistant than classic silicon chips. They conduct electricity more quickly, which is a prerequisite for fast charging technology for home electronics and electric cars, the more economical operation of data and server centers and for certain 5G mobile communications applications. Aixtron currently supplies several major customers who are setting up and expanding factories in which SiC and GaN components are manufactured on an industrial scale.
With GaN, the phase has just begun in which this material is replacing classic silicon on a really broad basis in applications such as fast charging technology for consumer electronics, e-bikes and the like, Grawert said in an analyst conference a few months ago. Therefore, demand for GaN systems is likely to remain high for a long time.
Warburg Research leaves Aixtron at ‘Buy’
The analysis house Warburg Research has left the rating for Aixtron at “Buy” with a price target of 33 euros. Incoming orders in the third quarter were below expectations, wrote analyst Malte Schaumann in a quick assessment available on Thursday. However, a strong recovery can be expected in the fourth quarter. The semiconductor supplier is likely to confirm its annual outlook. The current course offers an entry opportunity.
HERZOGENRATH (dpa-AFX)
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