Last night, Memscap delivered annual results in line with expectations and with an optimistic outlook, a publication which was rather well received by the stock market on Thursday.
The manufacturer of high-precision pressure sensors for the aerospace and medical markets announced that its sales had reached 14.1 million euros last year, compared with 9.3 million in 2022, representing growth of 50.7% over the year.
Operating profit from continuing operations was 2.5 million euros, or 17.6% of sales, compared with just 236,000 euros in 2022.
Net profit after tax from continuing operations was 2.1 million euros for the year, compared with a profit of 151,000 euros in 2022.
With regard to its outlook, the Group reports that its performance in 2023 confirms the ambitions of its '4C' strategic plan to 2026.
Euroland's analysts commented: "While the share price experienced a strong rerating in 2023 following its recovery (+185% over 12 months), we believe that the stock should continue to perform well, given its solid fundamentals, continuing buoyant markets and excellent business visibility thanks to its long-term contracts.
The brokerage firm has raised its price target to 10.5 euros, up from 8.1 euros previously, with a Buy recommendation.
Shortly before 12:00 pm, the share price was up by almost 2%.
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Memscap is the leader in designing, manufacturing and marketing components, modules, systems and solutions based on micro electro-mechanical systems (MEMS). MEMS combine semiconductor micro-electronics with micro-manufacturing technology to make entire systems contained on one chip. Net sales (excluding sold businesses) break down by area of activity as follows:
- avionics and medical (88%): design and manufacture of multifunctional sensors and measurement systems for aeronautics and medical sectors;
- optical communications (11.1%): design and marketing of variable optical attenuators (VOAs) for the communications market, based on a fabless organization;
- dermocosmetics (0.9%): operation and management of the Group's assets in the dermatology and cosmetology sectors, primarily the Ioma brand.
Net sales are distributed geographically as follows: Europe (52.9%), the United States (38.5%), Asia (7.8%) and other (0.8%).