Aixtron's revenue in 2022 will be approximately 3.4 billion, with revenue from Micro LED equipment growing

Under the unfavorable general environment in 2022, most manufacturers at home and abroad have performed poorly, but there are many examples of equipment manufacturers growing against the trend. For example, domestic MOCVD equipment manufacturer Sinomicron Corporation achieved double growth in revenue and net profit last year. The amount of newly signed orders was approximately 6.32 billion yuan, a year-on-year increase of approximately 53.0%.

International MOCVD equipment manufacturer AIXTRON SE also announced an eye-catching performance yesterday. The business development in various application fields throughout the year was in line with the company's expectations. The total number of new orders, revenue, net profit, gross profit margin and other major financial indicators performed well, and it is expected to maintain a continuous growth trend in 2023.

Driven by the global trends of sustainability, electrification and digitalization, Aixtron achieved full-year revenue of 463.2 million euros (approximately RMB 3.396 billion), a year-on-year increase of 8%. Shipments in the fourth quarter hit a new record since the first quarter of 2011, with revenue reaching 183.2 million euros, a slight increase compared with 180.9 million euros in the fourth quarter of 2021.

By application, GaN/SiC power electronic equipment accounts for the highest revenue share, reaching 42%, followed by optoelectronic equipment (28%) and LED equipment including Micro LED (27%).

In the LED equipment business, thanks to the growing market demand for Micro LED, Aistron's equipment revenue for Micro LED has increased compared to 2021. It is worth noting that at the end of January this year, Aixtron released a fully automatic AsP platform-G10-AsP MOCVD equipment, targeting the Micro LED and laser fields. Currently, this equipment has been verified for use by ams OSRAM for the production of 8-inch Micro LED wafers (epitaxial wafers). Next, Aixtron expects that the equipment will receive more positive market feedback, driving further growth in LED equipment business revenue.

In terms of new orders, thanks to the continued strong demand in the GaN/SiC power electronics field, Aixtron’s total new orders last year hit the second highest level in history, reaching 585.9 million euros (approximately RMB 4.296 billion) , a year-on-year increase of 18%; among which, the total number of new orders in the fourth quarter reached 160.3 million euros, a year-on-year increase of 34%. Against this background, the order backlog last year reached 351.8 million euros, a year-on-year increase of 64%.

The proportion of total new orders for GaN/SiC power electronics application equipment will increase from 45% in 2021 to more than 50% in 2022. Aistron pointed out that since the third quarter, the newly released G10-SiC equipment has made a significant contribution to overall performance growth. In addition, equipment demand in other application fields such as optoelectronics, laser applications, LED (including Micro LED) also maintains strong growth.

In 2022, Aixtron's gross profit margin will remain at a high level of 42%, and its operating profit margin will be 23%, in line with Aixtron's expectations. Gross profit was 195.3 million euros, a year-on-year increase of 8%. Among them, the fourth quarter also performed well, with gross profit reaching 82.2 million euros, a year-on-year increase of 3%. Operating profit (EBIT) was 104.7 million euros, a year-on-year increase of 6%, of which operating profit in the fourth quarter reached 57.1 million euros. Consolidated net profit is 1. 00.5 billion euros, a year-on-year increase of 6%, and earnings per share increased from 0.85 euros in 2021 to 0.89 euros in 2022.

In 2022, the company's free cash flow will be 7.7 million euros and 48.7 million euros in 2021, mainly due to the increase in inventory levels last year compared with 2021. In addition, according to business development needs, Aixtron continues to increase its research and development efforts. Last year, it invested 57.7 million euros in research and development, a further increase compared with 56.8 million euros in 2021.

Looking forward to 2023, Aixtron expects that demand for MOCVD equipment will further grow, which will drive its revenue to achieve double-digit growth. Based on an evaluation of the order situation, the company's existing structure and the budget exchange rate, Aixtron estimates that the total number of new orders in 2023 will be 600-680 million euros, the revenue will be 580-640 million euros, the gross profit margin is estimated to be about 45%, and the operating profit margin is about 25-27%.