Mega-trends like electromobility, digitalization, and artificial intelligence are expected to drive significant growth in sales and profitability for Siltronic (WAFGn.DE) over the next five years, the company announced in a strategy update on Thursday.
This mega-trend “will lead to a strong increase in demand for semiconductors and therefore also for wafers,” the company that supplies silicon wafers to the semiconductor industry stated in a statement.
The German manufacturer of chip equipment now projects that by 2028, earnings before interest, taxes, depreciation, and amortization (EBITDA) margins will approach the high 30-percentage range, and sales will surpass 2.2 billion euros ($2.41 billion).
However, a few brokers claimed that the new guidance fell short of their expectations.
Mega-trends like these are expected to drive significant growth in sales and profitability for Siltronic (WAFGn.DE) over the next five years. The company’s shares initially opened 4% lower but later pared losses and were down 2% at 0830 GMT.
“While the guided growth is slightly below our expectations, this confirms the solid positive trend for the usage of wafers, as anticipated,” Jefferies analysts wrote in a note.
The forecast would equate to a revenue increase of more than 40% over this year’s sales guidance.
But in the first half of 2024, the company observes that high customer inventory levels and the startup expenses of its new production facility in Singapore are impeding sales. One dollar is equal to 0.9113 euros.