XP Power — Revising forecasts to reflect weaker semis sector

XP Power (LSE: XPP)

Last close As at 27/12/2024

GBP13.96

146.00 (11.68%)

Market capitalisation

GBP331m

More on this equity

Research: TMT

XP Power — Revising forecasts to reflect weaker semis sector

As previously flagged, a drop in demand from XP’s semiconductor customers had a negative impact on Q4 revenues and orders. Conversely, demand from all other end-markets remained strong. With FY18 revenues likely to be 2% lower than we had expected, we have revised our forecasts to reflect this and expected weaker demand from the semiconductor sector in FY19. Despite the resulting 5% cut in EPS forecasts for FY19, the stock is trading at a discount to peers, with a superior dividend yield.

Katherine Thompson

Written by

Katherine Thompson

Director

TMT

XP Power

Revising forecasts to reflect weaker semis sector

Trading update

Tech hardware & equipment

14 January 2019

Price

2,240p

Market cap

£434m

$1.28:£1

Net debt (£m) at end FY18

52.5

Shares in issue

19.4m

Free float

90%

Code

XPP

Primary exchange

LSE

Secondary exchange

N/A

Share price performance

%

1m

3m

12m

Abs

0.0

(13.9)

(38.3)

Rel (local)

(2.1)

(12.7)

(30.8)

52-week high/low

3740p

2000p

Business description

XP Power is a developer and designer of power control solutions with production facilities in China, Vietnam and the US, and design, service and sales teams across Europe, the US and Asia.

Next events

FY18 results

5 March 2019

Analysts

Katherine Thompson

+44 (0)20 3077 5730

Dan Ridsdale

+44 (0)20 3077 5729

XP Power is a research client of Edison Investment Research Limited

As previously flagged, a drop in demand from XP’s semiconductor customers had a negative impact on Q4 revenues and orders. Conversely, demand from all other end-markets remained strong. With FY18 revenues likely to be 2% lower than we had expected, we have revised our forecasts to reflect this and expected weaker demand from the semiconductor sector in FY19. Despite the resulting 5% cut in EPS forecasts for FY19, the stock is trading at a discount to peers, with a superior dividend yield.

Year end

Revenue (£m)

PBT*
(£m)

EPS*
(p)

DPS
(p)

P/E
(x)

Yield
(%)

12/16

129.8

28.6

115.3

71.0

19.4

3.2

12/17

166.8

36.1

147.0

78.0

15.2

3.5

12/18e

194.8

40.7

170.5

84.0

13.1

3.8

12/19e

210.3

43.9

187.9

87.0

11.9

3.9

Note: *PBT and EPS are normalised, excluding amortisation of acquired intangibles, exceptional items and share-based payments.

Q418 revenues and orders see sequential decline

XP expects to report Q4 revenues of £48.9m (+14% y-o-y/+12% constant currency/ -8% q-o-q) and orders of £45.1m (-4% y-o-y/-6% cc/-13% q-o-q). Weakness from the semiconductor sector (c 25% of revenues) had already been flagged, and this continued during Q4. Year-end net debt was £52.5m, versus our £44.8m forecast. XP expects to announce a Q4 dividend of at least 32p (ahead of our 30p forecast). Despite the dip in demand from semiconductor production equipment customers (SPE), XP expects to generate growth in FY19, including the effect of a full year of Glassman revenues.

Estimates revised to reflect bookings and currency

After several years of strong growth, industry association SEMI is forecasting a c 8% decline in global semiconductor capex in CY19 as chip manufacturers respond to weaker memory prices. We have revised our estimates to factor in declining SPE revenues in FY19, with the remaining business forecast to grow at mid-single digits. We have also factored in the stronger dollar (from $1.32/£1 to $1.30/£1 for FY19). We have revised our working capital forecast, assuming that inventory grew faster due to slower revenues in Q4 and the impact of the stronger dollar. We reduce our normalised EPS forecasts by 4.0% for FY18e and 5.3% for FY19e.

Valuation: Semis weakness factored in

Since its peak of 3,620p at the end of July, the stock has declined nearly 40%, we believe due to concerns over weakening demand from SPE customers. XP is now trading at 11.9x revised FY19 EPS estimates, compared to 18.9x in July. We estimate that XP currently generates c 25% of revenues from the SPE sector so is not immune to weakening sector demand, but market share gains as well as robust demand in its other end-markets should reduce the potential exposure. On an FY19e P/E basis, XP is trading at c 22% discount to global power converter companies and UK electronics companies, with a dividend yield at the top end of the range. XP generates EBITDA and EBIT margins at the top end of its peer group.

Changes to estimates

Exhibit 1: Changes to estimates

£'m

FY18e

FY18e

y-o-y

FY19e

FY19e

y-o-y

Old

New

Change

Old

New

Change

Revenues

198.9

194.8

(2.1%)

16.8%

219.4

210.3

(4.2%)

8.0%

Gross profit

90.8

89.6

(1.3%)

15.4%

100.4

97.0

(3.4%)

8.3%

Gross margin

45.6%

46.0%

0.4%

(0.5%)

45.7%

46.1%

0.4%

0.1%

EBITDA

49.2

48.2

(2.0%)

15.7%

55.0

52.7

(4.2%)

9.2%

EBITDA margin

24.8%

24.8%

0.0%

(0.2%)

25.1%

25.1%

(0.0%)

0.3%

Normalised operating profit

43.5

42.1

(3.2%)

15.8%

49.0

45.7

(6.7%)

8.4%

Normalised operating profit margin

21.9%

21.6%

(0.3%)

(0.2%)

22.3%

21.7%

(0.6%)

0.1%

Reported operating profit

41.7

39.7

(4.8%)

22.3%

47.8

37.7

(21.1%)

(5.2%)

Reported operating margin

21.0%

20.4%

(0.6%)

0.9%

21.8%

17.9%

(3.9%)

(2.5%)

Normalised PBT

42.2

40.7

(3.5%)

12.7%

47.2

43.9

(7.0%)

8.0%

Reported PBT

40.4

38.3

(5.2%)

18.9%

46.0

35.9

(21.9%)

(6.1%)

Normalised net income

34.4

33.3

(3.3%)

16.9%

38.5

37.0

(3.8%)

11.1%

Reported net income

32.9

31.1

(5.2%)

10.0%

37.5

29.2

(22.1%)

(6.2%)

Normalised basic EPS (p)

180.4

173.1

(4.0%)

15.9%

201.5

190.8

(5.3%)

10.2%

Normalised diluted EPS (p)

177.6

170.5

(4.0%)

16.0%

198.4

187.9

(5.3%)

10.2%

Reported basic EPS (p)

172.1

161.8

(6.0%)

9.1%

196.3

150.6

(23.3%)

(6.9%)

Dividend per share (p)

82.0

84.0

2.4%

7.7%

85.0

87.0

2.4%

3.6%

Net debt/(cash)

44.8

52.5

17.2%

483.3%

32.7

45.0

37.4%

(14.3%)

Source: Edison Investment Research


Exhibit 2: Financial summary

£'m

2012

2013

2014

2015

2016

2017

2018e

2019e

31-December

IFRS

IFRS

IFRS

IFRS

IFRS

IFRS

IFRS

IFRS

INCOME STATEMENT

Revenue

 

 

93.9

101.1

101.1

109.7

129.8

166.8

194.8

210.3

Cost of Sales

(49.0)

(51.5)

(51.0)

(55.1)

(67.8)

(89.2)

(105.2)

(113.3)

Gross Profit

44.9

49.6

50.1

54.6

62.0

77.6

89.6

97.0

EBITDA

 

 

23.3

26.0

27.6

29.7

33.0

41.7

48.2

52.7

Normalised operating profit

 

 

21.0

23.3

24.5

25.9

28.8

36.4

42.1

45.7

Amortisation of acquired intangibles

0.0

0.0

0.0

0.0

(0.4)

(0.6)

(2.0)

(2.5)

Exceptionals

0.0

0.0

0.0

(0.3)

(0.4)

(3.3)

(0.4)

(5.0)

Share-based payments

0.0

0.0

0.0

0.0

0.0

0.0

0.0

(0.5)

Reported operating profit

21.0

23.3

24.5

25.6

28.0

32.5

39.7

37.7

Net Interest

(0.8)

(0.4)

(0.2)

(0.2)

(0.2)

(0.3)

(1.5)

(1.8)

Joint ventures & associates (post tax)

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

Exceptional & other financial

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

Profit Before Tax (norm)

 

 

20.2

22.9

24.3

25.7

28.6

36.1

40.7

43.9

Profit Before Tax (reported)

 

 

20.2

22.9

24.3

25.4

27.8

32.2

38.3

35.9

Reported tax

(4.5)

(4.5)

(4.8)

(5.5)

(6.3)

(3.6)

(6.9)

(6.5)

Profit After Tax (norm)

15.7

18.4

19.5

20.2

22.3

28.8

33.6

37.3

Profit After Tax (reported)

15.7

18.4

19.5

19.9

21.5

28.6

31.4

29.5

Minority interests

(0.2)

(0.2)

(0.1)

(0.2)

(0.2)

(0.3)

(0.3)

(0.3)

Discontinued operations

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

Net income (normalised)

15.5

18.2

19.4

20.0

22.1

28.5

33.3

37.0

Net income (reported)

15.5

18.2

19.4

19.7

21.3

28.3

31.1

29.2

Basic average number of shares outstanding (m)

19

19

19

19

19

19

19

19

EPS - basic normalised (p)

 

 

81.7

95.8

102.1

105.3

116.2

149.4

173.1

190.8

EPS - diluted normalised (p)

 

 

81.3

95.1

101.1

104.3

115.3

147.0

170.5

187.9

EPS - basic reported (p)

 

 

81.7

95.8

102.1

103.7

112.0

148.3

161.8

150.6

Dividend (p)

50

55

61

66

71

78

84

87

Revenue growth (%)

(9.4)

7.7

0.0

8.5

18.3

28.5

16.8

8.0

Gross Margin (%)

47.8

49.1

49.6

49.8

47.8

46.5

46.0

46.1

EBITDA Margin (%)

24.8

25.7

27.3

27.0

25.4

25.0

24.8

25.1

Normalised Operating Margin

22.4

23.0

24.2

23.6

22.2

21.8

21.6

21.7

BALANCE SHEET

Fixed Assets

 

 

52.8

53.3

56.1

65.4

73.2

88.1

126.2

132.4

Intangible Assets

38.1

39.1

40.5

48.2

53.0

63.9

91.6

91.3

Tangible Assets

13.2

12.7

14.4

16.1

19.1

22.5

32.9

39.4

Investments & other

1.5

1.5

1.2

1.1

1.1

1.7

1.7

1.7

Current Assets

 

 

39.3

42.2

47.0

53.5

65.7

83.5

96.7

100.5

Stocks

19.8

20.4

25.2

28.7

32.2

37.8

53.3

52.8

Debtors

14.2

15.4

16.0

17.5

21.5

23.8

29.9

31.7

Cash & cash equivalents

4.1

5.0

3.8

4.9

9.2

15.0

9.5

12.0

Other

1.2

1.4

2.0

2.4

2.8

6.9

4.0

4.0

Current Liabilities

 

 

(20.2)

(22.4)

(18.6)

(19.8)

(25.8)

(25.1)

(27.8)

(29.6)

Creditors

(11.1)

(12.7)

(14.4)

(14.6)

(16.1)

(21.4)

(24.1)

(25.9)

Tax and social security

(1.6)

(1.1)

(1.7)

(1.2)

(3.3)

(3.5)

(3.5)

(3.5)

Short term borrowings

(7.3)

(8.5)

(2.5)

(4.0)

(5.5)

0.0

0.0

0.0

Other

(0.2)

(0.1)

0.0

0.0

(0.9)

(0.2)

(0.2)

(0.2)

Long Term Liabilities

 

 

(10.6)

(3.7)

(4.2)

(10.0)

(6.2)

(29.6)

(67.6)

(62.6)

Long term borrowings

(7.4)

0.0

0.0

(4.6)

0.0

(24.0)

(62.0)

(57.0)

Other long term liabilities

(3.2)

(3.7)

(4.2)

(5.4)

(6.2)

(5.6)

(5.6)

(5.6)

Net Assets

 

 

61.3

69.4

80.3

89.1

106.9

116.9

127.6

140.8

Minority interests

(0.2)

(0.2)

(0.1)

(0.8)

(0.8)

(0.9)

(1.0)

(1.1)

Shareholders' equity

 

 

61.1

69.2

80.2

88.3

106.1

116.0

126.5

139.5

CASH FLOW

Op Cash Flow before WC and tax

23.3

26.0

27.6

29.7

33.0

41.7

48.2

52.7

Working capital

4.2

(0.3)

(4.1)

(4.6)

(6.1)

0.4

(18.9)

0.6

Exceptional & other

0.4

(0.5)

1.9

0.6

5.1

(6.3)

(0.4)

(5.0)

Tax

(4.3)

(5.0)

(3.6)

(4.7)

(4.1)

(6.1)

(4.0)

(6.5)

Net operating cash flow

 

 

23.6

20.2

21.8

21.0

27.9

29.7

24.9

41.8

Capex

(4.7)

(3.2)

(5.8)

(5.4)

(6.8)

(10.1)

(15.5)

(15.7)

Acquisitions/disposals

(1.6)

0.1

0.1

(8.3)

0.1

(18.3)

(35.6)

0.0

Net interest

(0.5)

(0.3)

(0.1)

(0.1)

(0.2)

(0.2)

(1.5)

(1.8)

Equity financing

(0.5)

0.1

(0.2)

0.0

0.2

(0.2)

0.0

0.0

Dividends

(9.1)

(10.1)

(11.0)

(12.2)

(13.1)

(14.2)

(15.5)

(16.8)

Other

0.5

0.2

0.1

0.2

0.0

0.0

(0.4)

0.0

Net Cash Flow

7.7

7.0

4.9

(4.8)

8.1

(13.3)

(43.5)

7.5

Opening net debt/(cash)

 

 

18.6

10.6

3.5

(1.3)

3.7

(3.7)

9.0

52.5

FX

0.3

0.1

(0.1)

(0.2)

(0.5)

0.7

0.0

0.0

Other non-cash movements

0.0

0.0

0.0

0.1

(0.2)

(0.1)

0.0

0.0

Closing net debt/(cash)

 

 

10.6

3.5

(1.3)

3.7

(3.7)

9.0

52.5

45.0

Source: Company accounts, Edison Investment Research

General disclaimer and copyright

This report has been commissioned by XP Power and prepared and issued by Edison, in consideration of a fee payable by XP Power. Edison Investment Research standard fees are £49,500 pa for the production and broad dissemination of a detailed note (Outlook) following by regular (typically quarterly) update notes. Fees are paid upfront in cash without recourse. Edison may seek additional fees for the provision of roadshows and related IR services for the client but does not get remunerated for any investment banking services. We never take payment in stock, options or warrants for any of our services.

Accuracy of content: All information used in the publication of this report has been compiled from publicly available sources that are believed to be reliable, however we do not guarantee the accuracy or completeness of this report and have not sought for this information to be independently verified. Opinions contained in this report represent those of the Edison analyst at the time of publication. Forward-looking information or statements in this report contain information that is based on assumptions, forecasts of future results, estimates of amounts not yet determinable, and therefore involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of their subject matter to be materially different from current expectations.

Exclusion of Liability: To the fullest extent allowed by law, Edison shall not be liable for any direct, indirect or consequential losses, loss of profits, damages, costs or expenses incurred or suffered by you arising out or in connection with the access to, use of or reliance on any information contained on this note.

No personalised advice: The information that we provide should not be construed in any manner whatsoever as, personalised advice. Also, the information provided by us should not be construed by any subscriber or prospective subscriber as Edison’s solicitation to effect, or attempt to effect, any transaction in a security. The securities described in the report may not be eligible for sale in all jurisdictions or to certain categories of investors.

Investment in securities mentioned: Edison has a restrictive policy relating to personal dealing and conflicts of interest. Edison Group does not conduct any investment business and, accordingly, does not itself hold any positions in the securities mentioned in this report. However, the respective directors, officers, employees and contractors of Edison may have a position in any or related securities mentioned in this report, subject to Edison's policies on personal dealing and conflicts of interest.

Copyright: Copyright 2019 Edison Investment Research Limited (Edison). All rights reserved FTSE International Limited (“FTSE”) © FTSE 2019. “FTSE®” is a trade mark of the London Stock Exchange Group companies and is used by FTSE International Limited under license. All rights in the FTSE indices and/or FTSE ratings vest in FTSE and/or its licensors. Neither FTSE nor its licensors accept any liability for any errors or omissions in the FTSE indices and/or FTSE ratings or underlying data. No further distribution of FTSE Data is permitted without FTSE’s express written consent.

Australia

Edison Investment Research Pty Ltd (Edison AU) is the Australian subsidiary of Edison. Edison AU is a Corporate Authorised Representative (1252501) of Myonlineadvisers Pty Ltd who holds an Australian Financial Services Licence (Number: 427484). This research is issued in Australia by Edison AU and any access to it, is intended only for "wholesale clients" within the meaning of the Corporations Act 2001 of Australia. Any advice given by Edison AU is general advice only and does not take into account your personal circumstances, needs or objectives. You should, before acting on this advice, consider the appropriateness of the advice, having regard to your objectives, financial situation and needs. If our advice relates to the acquisition, or possible acquisition, of a particular financial product you should read any relevant Product Disclosure Statement or like instrument.

New Zealand

The research in this document is intended for New Zealand resident professional financial advisers or brokers (for use in their roles as financial advisers or brokers) and habitual investors who are “wholesale clients” for the purpose of the Financial Advisers Act 2008 (FAA) (as described in sections 5(c) (1)(a), (b) and (c) of the FAA). This is not a solicitation or inducement to buy, sell, subscribe, or underwrite any securities mentioned or in the topic of this document. For the purpose of the FAA, the content of this report is of a general nature, is intended as a source of general information only and is not intended to constitute a recommendation or opinion in relation to acquiring or disposing (including refraining from acquiring or disposing) of securities. The distribution of this document is not a “personalised service” and, to the extent that it contains any financial advice, is intended only as a “class service” provided by Edison within the meaning of the FAA (i.e. without taking into account the particular financial situation or goals of any person). As such, it should not be relied upon in making an investment decision.

United Kingdom

Neither this document and associated email (together, the "Communication") constitutes or form part of any offer for sale or subscription of, or solicitation of any offer to buy or subscribe for, any securities, nor shall it or any part of it form the basis of, or be relied on in connection with, any contract or commitment whatsoever. Any decision to purchase shares in the Company in the proposed placing should be made solely on the basis of the information to be contained in the admission document to be published in connection therewith.

This Communication is being distributed in the United Kingdom and is directed only at (i) persons having professional experience in matters relating to investments, i.e. investment professionals within the meaning of Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005, as amended (the "FPO") (ii) high net-worth companies, unincorporated associations or other bodies within the meaning of Article 49 of the FPO and (iii) persons to whom it is otherwise lawful to distribute it. The investment or investment activity to which this document relates is available only to such persons. It is not intended that this document be distributed or passed on, directly or indirectly, to any other class of persons and in any event and under no circumstances should persons of any other description rely on or act upon the contents of this document (nor will such persons be able to purchase shares in the placing).

This Communication is being supplied to you solely for your information and may not be reproduced by, further distributed to or published in whole or in part by, any other person.

United States

The Investment Research is a publication distributed in the United States by Edison Investment Research, Inc. Edison Investment Research, Inc. is registered as an investment adviser with the Securities and Exchange Commission. Edison relies upon the "publishers' exclusion" from the definition of investment adviser under Section 202(a) (11) of the Investment Advisers Act of 1940 and corresponding state securities laws. This report is a bona fide publication of general and regular circulation offering impersonal investment-related advice, not tailored to a specific investment portfolio or the needs of current and/or prospective subscribers. As such, Edison does not offer or provide personal advice and the research provided is for informational purposes only. No mention of a particular security in this report constitutes a recommendation to buy, sell or hold that or any security, or that any particular security, portfolio of securities, transaction or investment strategy is suitable for any specific person.

Frankfurt +49 (0)69 78 8076 960

Schumannstrasse 34b

60325 Frankfurt

Germany

London +44 (0)20 3077 5700

280 High Holborn

London, WC1V 7EE

United Kingdom

New York +1 646 653 7026

295 Madison Avenue, 18th Floor

10017, New York

US

Sydney +61 (0)2 8249 8342

Level 4, Office 1205

95 Pitt Street, Sydney

NSW 2000, Australia

Frankfurt +49 (0)69 78 8076 960

Schumannstrasse 34b

60325 Frankfurt

Germany

London +44 (0)20 3077 5700

280 High Holborn

London, WC1V 7EE

United Kingdom

New York +1 646 653 7026

295 Madison Avenue, 18th Floor

10017, New York

US

Sydney +61 (0)2 8249 8342

Level 4, Office 1205

95 Pitt Street, Sydney

NSW 2000, Australia

General disclaimer and copyright

This report has been commissioned by XP Power and prepared and issued by Edison, in consideration of a fee payable by XP Power. Edison Investment Research standard fees are £49,500 pa for the production and broad dissemination of a detailed note (Outlook) following by regular (typically quarterly) update notes. Fees are paid upfront in cash without recourse. Edison may seek additional fees for the provision of roadshows and related IR services for the client but does not get remunerated for any investment banking services. We never take payment in stock, options or warrants for any of our services.

Accuracy of content: All information used in the publication of this report has been compiled from publicly available sources that are believed to be reliable, however we do not guarantee the accuracy or completeness of this report and have not sought for this information to be independently verified. Opinions contained in this report represent those of the Edison analyst at the time of publication. Forward-looking information or statements in this report contain information that is based on assumptions, forecasts of future results, estimates of amounts not yet determinable, and therefore involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of their subject matter to be materially different from current expectations.

Exclusion of Liability: To the fullest extent allowed by law, Edison shall not be liable for any direct, indirect or consequential losses, loss of profits, damages, costs or expenses incurred or suffered by you arising out or in connection with the access to, use of or reliance on any information contained on this note.

No personalised advice: The information that we provide should not be construed in any manner whatsoever as, personalised advice. Also, the information provided by us should not be construed by any subscriber or prospective subscriber as Edison’s solicitation to effect, or attempt to effect, any transaction in a security. The securities described in the report may not be eligible for sale in all jurisdictions or to certain categories of investors.

Investment in securities mentioned: Edison has a restrictive policy relating to personal dealing and conflicts of interest. Edison Group does not conduct any investment business and, accordingly, does not itself hold any positions in the securities mentioned in this report. However, the respective directors, officers, employees and contractors of Edison may have a position in any or related securities mentioned in this report, subject to Edison's policies on personal dealing and conflicts of interest.

Copyright: Copyright 2019 Edison Investment Research Limited (Edison). All rights reserved FTSE International Limited (“FTSE”) © FTSE 2019. “FTSE®” is a trade mark of the London Stock Exchange Group companies and is used by FTSE International Limited under license. All rights in the FTSE indices and/or FTSE ratings vest in FTSE and/or its licensors. Neither FTSE nor its licensors accept any liability for any errors or omissions in the FTSE indices and/or FTSE ratings or underlying data. No further distribution of FTSE Data is permitted without FTSE’s express written consent.

Australia

Edison Investment Research Pty Ltd (Edison AU) is the Australian subsidiary of Edison. Edison AU is a Corporate Authorised Representative (1252501) of Myonlineadvisers Pty Ltd who holds an Australian Financial Services Licence (Number: 427484). This research is issued in Australia by Edison AU and any access to it, is intended only for "wholesale clients" within the meaning of the Corporations Act 2001 of Australia. Any advice given by Edison AU is general advice only and does not take into account your personal circumstances, needs or objectives. You should, before acting on this advice, consider the appropriateness of the advice, having regard to your objectives, financial situation and needs. If our advice relates to the acquisition, or possible acquisition, of a particular financial product you should read any relevant Product Disclosure Statement or like instrument.

New Zealand

The research in this document is intended for New Zealand resident professional financial advisers or brokers (for use in their roles as financial advisers or brokers) and habitual investors who are “wholesale clients” for the purpose of the Financial Advisers Act 2008 (FAA) (as described in sections 5(c) (1)(a), (b) and (c) of the FAA). This is not a solicitation or inducement to buy, sell, subscribe, or underwrite any securities mentioned or in the topic of this document. For the purpose of the FAA, the content of this report is of a general nature, is intended as a source of general information only and is not intended to constitute a recommendation or opinion in relation to acquiring or disposing (including refraining from acquiring or disposing) of securities. The distribution of this document is not a “personalised service” and, to the extent that it contains any financial advice, is intended only as a “class service” provided by Edison within the meaning of the FAA (i.e. without taking into account the particular financial situation or goals of any person). As such, it should not be relied upon in making an investment decision.

United Kingdom

Neither this document and associated email (together, the "Communication") constitutes or form part of any offer for sale or subscription of, or solicitation of any offer to buy or subscribe for, any securities, nor shall it or any part of it form the basis of, or be relied on in connection with, any contract or commitment whatsoever. Any decision to purchase shares in the Company in the proposed placing should be made solely on the basis of the information to be contained in the admission document to be published in connection therewith.

This Communication is being distributed in the United Kingdom and is directed only at (i) persons having professional experience in matters relating to investments, i.e. investment professionals within the meaning of Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005, as amended (the "FPO") (ii) high net-worth companies, unincorporated associations or other bodies within the meaning of Article 49 of the FPO and (iii) persons to whom it is otherwise lawful to distribute it. The investment or investment activity to which this document relates is available only to such persons. It is not intended that this document be distributed or passed on, directly or indirectly, to any other class of persons and in any event and under no circumstances should persons of any other description rely on or act upon the contents of this document (nor will such persons be able to purchase shares in the placing).

This Communication is being supplied to you solely for your information and may not be reproduced by, further distributed to or published in whole or in part by, any other person.

United States

The Investment Research is a publication distributed in the United States by Edison Investment Research, Inc. Edison Investment Research, Inc. is registered as an investment adviser with the Securities and Exchange Commission. Edison relies upon the "publishers' exclusion" from the definition of investment adviser under Section 202(a) (11) of the Investment Advisers Act of 1940 and corresponding state securities laws. This report is a bona fide publication of general and regular circulation offering impersonal investment-related advice, not tailored to a specific investment portfolio or the needs of current and/or prospective subscribers. As such, Edison does not offer or provide personal advice and the research provided is for informational purposes only. No mention of a particular security in this report constitutes a recommendation to buy, sell or hold that or any security, or that any particular security, portfolio of securities, transaction or investment strategy is suitable for any specific person.

Frankfurt +49 (0)69 78 8076 960

Schumannstrasse 34b

60325 Frankfurt

Germany

London +44 (0)20 3077 5700

280 High Holborn

London, WC1V 7EE

United Kingdom

New York +1 646 653 7026

295 Madison Avenue, 18th Floor

10017, New York

US

Sydney +61 (0)2 8249 8342

Level 4, Office 1205

95 Pitt Street, Sydney

NSW 2000, Australia

Frankfurt +49 (0)69 78 8076 960

Schumannstrasse 34b

60325 Frankfurt

Germany

London +44 (0)20 3077 5700

280 High Holborn

London, WC1V 7EE

United Kingdom

New York +1 646 653 7026

295 Madison Avenue, 18th Floor

10017, New York

US

Sydney +61 (0)2 8249 8342

Level 4, Office 1205

95 Pitt Street, Sydney

NSW 2000, Australia

More on XP Power

View All

Latest from the TMT sector

View All TMT content

Research: Healthcare

Pixium Vision — Positive interim six-month Prima data

Pixium announced on 8 January 2019 that its Prima wireless photovoltaic sub-retinal implant successfully met the endpoints of the EU feasibility study at interim six months follow-up after implantation, in patients with advanced dry age-related macular degeneration (Dry-ARMD). Results are in line with preliminary data points reported in our 17 December 2018 note, and may also attract eligible candidates for its ongoing US feasibility study. Pixium believes the interim safety data could be used to enable the design of the protocol for a larger, multi-centre, CE Mark-enabling European pivotal study. The EU pivotal study may start recruitment in Q319, potentially resulting in initial implantations before YE19.

Continue Reading

Subscribe to Edison

Get access to the very latest content matched to your personal investment style.

Sign up for free