Aixtron stock is up almost 10% this year. The market value is currently 3.5 billion euros and the operations are running at full speed: Aixtron is currently benefiting strongly from the boom in power saving chips made from innovative materials such as silicon carbide and gallium nitride. The company’s machines produce these components, which are in high demand for electric cars, among other things.

Aixtron, a specialist in machine building for the semiconductor industry, is a leading provider of deposition systems for the semiconductor industry. The company was founded in 1983 and has its headquarters in Herzogenrath as well as subsidiaries and representatives in Asia, the USA and Europe. The company’s products are used worldwide by a wide range of customers to produce powerful components for electronic and optoelectronic applications based on compound or organic semiconductor materials.

These components are used in display technology, signal and lighting technology, fiber optic communication networks, wireless and mobile telephone applications, optical and electronic data storage, LEDs, photovoltaics and a range of other high-tech applications. Its customers include many well-known international electronics companies such as Osram, Philips, Merck, Mitsubishi, Sumitomo or Samsung as well as numerous smaller manufacturers of micro- and optoelectronic components.

Revenue jump in the third quarter The first look at the figures shows a clearly improving business dynamics: In the third quarter, sales rose 86% to 165 million euros. This even exceeded the high growth dynamics of the second quarter (sales: +69%). Operating profit (EBIT) was 45.3 million euros. The profit margin before interest and taxes (EBIT) was 27%, significantly higher than the previous year’s level of 18%. Net profit was 39.6 million euros (+107% vs. Q3 2022) or 0.35 euros per share.

Forecast remains unchanged However, the incoming orders including spare parts and service were weak, falling 17% year-on-year to 118.5 million euros. Nevertheless, the company’s management is still standing by its annual targets: For the current financial year 2023, the company is targeting sales of between 600 and 660 million euros (previous year: 463 million euros). The EBIT margin is expected to be between 25 and 27%.

100 million euro investment Meanwhile, Aixtron is investing in the future. The chip vendor is pumping 100 million euros into its headquarters in Herzogenrath near Aachen in order to build a new innovation center. 1000 square meters of cleanroom space will be created on the company premises. The new building will provide space for the next generations of products, which are already being prepared, as well as for further product developments. The groundbreaking ceremony took place yesterday.

Conclusion: According to Aixtron’s homepage, analysts expect earnings per share between 1.19 and 1.40 euros for the current financial year. This puts the current price-earnings ratio for 2023 between 22 and 26. The equity ratio is also strong at 77%. Of the 13 analysts tracking the stock, nine recommend buying the shares. The rest are recommending to hold. The average target price of all analysts is 38.30 euros (source: marketscreener.com), about 23% above the current target price.