RESEARCH COLLABORATION WITH ENLIGHT RESEARCH
Mattias Wallander | 2023-01-24 08:00
This research report has been conducted in cooperation with Enlight Research. This commissioned research report is for informational purposes only and is to be considered marketing communication. This research does not constitute investment advice and is not a solicitation to buy shares. For more information, https://www.enlightresearch.net/
Hypergrowth marketWe estimate FOM’s addressable market to grow by 40-50% annually in the coming 5 years. The strong growth is a function of high demand and a small base. We estimate FOM’s addressable market to be worth USD ~20m which could grow to USD ~128m by 2026. We forecast FOM’s sales to grow in line with the market from DKK 24m in 2021 to DKK 77m in 2024 (CAGR +47%) with Net profits increasing from DKK 1.6m to DKK 4.6m during the same period.
Market leading positionThe client list includes XEROX, First Solar (PV), Rivian (EV), Livent (Lithium batteries), and the US Department of Energy. Why do global corporations buy coating machines from a small Danish company? We believe it is because they provide the best product i.e., FOM is the market leader in our view.
Base case Fair value DKK 55.00/shr.Our Base case DCF Fair value is DKK 55.00/shr., which assumes a terminal EBIT margin of 15%. We believe FOM could be in the beginning of a long-term above normal growth journey driven by the renewable energy industry’s need for new coating solutions.
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