Material matters
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Edison Investment Research Limited
London, UK, 10 Mai 2024
Edison issues initiation on PVA TePla (TPE): Material matters PVA TePla has transitioned from a small seller of industrial systems to a materials technology and metrology solutions company, set to reach c €280m in revenues in FY24. Its increasing exposure to the fast-growing semiconductor industry (more than two-thirds of sales) and high-end materials markets is securing growth, driven by AI, digitisation and e-mobility. The combination of a higher capital intensity in the semiconductor industry and growing end markets bodes well for players like PVA TePla, which are exposed to the fast-growing part of equipment sales like metrology. Despite this, PVA TePla is still largely valued as an industrial company, trading at a significant discount to peers and our DCF. PVA TePla is trading at an FY25e EV/EBITDA of 6.8x on our estimates. This is much lower than European semiconductor equipment makers (average of c 20.6x), inspection/process control companies (22.5x) and also lower compared to advanced materials players (11.0x). As such, we believe that PVA TePla’s transformation is not reflected in its valuation. Our DCF valuation arrives at a fair value of €35.26 per share. Click here to view the full report. All reports published by Edison are available to download free of charge from its website About Edison: As a content-led investor-relations business, Edison helps companies stand out and meet the right shareholders. Edison’s integrated investor relations solution combines expert analyst content, digital targeting and active investor engagement. This drives liquidity and valuations by building bigger, better informed and more engaged investor audiences globally. Edison has a proven history of increasing liquidity and valuations for its clients. Edison’s content can be viewed by all investors, anywhere in the world. Edison is authorised and regulated by the Financial Conduct Authority. Edison is not an adviser or broker-dealer and does not provide investment advice. Edison’s reports are not solicitations to buy or sell any securities. For more information, please contact Edison: Edwin de Jong +44 (0)20 3077 5700 tech@edisongroup.com Learn more at www.edisongroup.com and connect with Edison on: LinkedIn https://www.linkedin.com/company/edison-group-/ X www.twitter.com/Edison_Inv_Res YouTube http://www.youtube.com/edisonitv
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1900445 10-May-2024
