Singulus Technologies AG: Mixed FY23 Results with Optimistic FY24 Outlook

Singulus Technologies AG experienced a challenging fiscal year 2023 (FY23), missing both top and bottom-line expectations, as reported by NuWays AG. The company's sales decreased by 17% year-over-year to €73 million, undershooting the adjusted guidance range of €90-100 million due to a weak Life Science segment and delays in Solar segment projects. EBIT for FY23 was recorded at €-10.1 million, falling short of the anticipated positive low single-digit millions.

Despite the setbacks, the Solar segment reported a 30% sales increase to €39 million, buoyed by the company's strong performance in the US and subsidies related to the inflation reduction act. Conversely, the Life Science segment saw a significant decline, with sales falling by 54% year-over-year to €23.9 million due to cyclical challenges. The Semiconductor segment, however, showed promise with a 66% year-over-year increase in sales to €10.3 million, driven by new product pipelines such as μLED technology.

Looking ahead, Singulus Technologies AG presented an ambitious guidance for FY24, projecting sales between €120-130 million and low double-digit million EBIT. This forecast suggests a 72% growth in sales, despite the uncertainties surrounding subsidies in the Solar segment, a reduced order backlog, and a challenging macroeconomic environment. Analysts at NuWays AG have thus reiterated a "Hold" recommendation with an unchanged price target of €1.60, underlining the company's mid-term growth prospects amidst current challenges.