Singulus Technologies AG Shows Promising Growth in Q1; Maintains 'Hold' Rating by NuWays AG

According to a recent update by NuWays AG, Singulus Technologies AG has demonstrated significant order intake in the first quarter of FY24, totaling approximately €28 million. This marks a strong start for the year, especially compared to the total order intake of €43 million in FY23. The substantial growth in orders, primarily driven by the semiconductor segment, signals potential operational breakeven for the company within the year.

In the solar sector, Singulus delivered a sputtering machine for thin-film solar cells to CNBM, its major client, in FY23. After successful performance evaluations, CNBM placed additional orders, contributing to an optimistic revenue projection of €50 million for FY24 in the solar segment, a 28% increase year-over-year. Meanwhile, the semiconductor segment, though smaller, grew significantly by 66% in FY23 and expects to maintain robust growth with projected revenues of €21.8 million, up 112% year-over-year in FY24.

However, the life sciences segment experienced softer performance in FY23 and anticipates only a modest revenue increase of 5.9% in FY24, due to ongoing challenges in the macro environment and a low order backlog. NuWays AG reiterates a 'Hold' recommendation for Singulus Technologies AG with a target price of EUR 1.60, based mainly on DCF analysis and the potential for reaching operational breakeven this year.