X Fab Silicon Foundries EV Model update after 2Q24 results and new -lower- FY24 guidance
Although 2Q24 topline was in line with CSS and profitability was even above our and CSS forecasts, we lowered our forecasts for X-FAB as 3Q24 revenue is now expected to come in within a range of $ 205-215m (new KBCSe $ 209.6m) with an EBITDA margin in the range of 24-27% (CSS 25.5%).X-FAB also adjusted the FY24 revenue guidance from $900-970m to USD $ 860-880m (new KBCSe $ 869.2m), mainly reflecting the overall delayed recovery of the SiC power device market; with a slightly adjusted top end, the full-year EBITDA margin guidance range has been narrowed to 25-28% (new KBCSe 25.1%).
We reiterate our Accumulate rating as the electrification of everything is inevitable to move away from fossil fuels and mitigate climate change, driving long-term growth in X-FAB's automotive and industrial businesses. Also aging and growing populations require technological innovation to make prevention, diagnosis and treatment of disease more efficient, reliable and accessible to an ever-growing number of people. X-FAB's microsystems expertise with the combination of CMOS and MEMS supports the development of world-leading medical applications and fuels the long-term growth of X-FAB's medical business.
X Fab Silicon Foundries EV is a Belgium-based company primarily engaged in the semiconductors industry. The Company focuses on the design and manufacture of silicon wafers for mixed-signal integrated circuits (ICs). Its products are integrated with additional features, such as high voltage option, embedded non-volatile memory, optical, radio frequency (RF) and bipolar elements, as well as microelectromechanical sensors. The Company distributes silicon wafers for various applications, including automotive, industrial, medical, as well as consumer electronics and mobile communications sector. The Company operates in a number of countries, such as Germany, France, Malaysia and the United States.
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