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The strong quarterly business (+ 36%) of competitor Taiwan Semiconductor is fueled by Infineon, and the company is also starting construction of a new manufacturing facility in Malaysia. Eckert & Ziegler plans to jointly develop and manufacture innovative radiopharmaceutical products with the American pharmaceutical company Ratio Therapeutics.
Positive data from industry giant Taiwan Semiconductor led to a rebound in the stock quality index Infineon on Monday. It increases by 1.3% to EUR 23.50. The semiconductor specialist already received support on Friday as Taiwan Semiconductor provided more confidence with strong quarterly results and surprisingly confident outlook. After all, sales of the Taiwanese competitor were not only 36% higher than in the same quarter last year, management is looking confidently at the third and fourth quarters, despite the slight cyclical slump in the semiconductor industry and rising costs. Infineon itself will not present the report for the third quarter until August 3. If there is also an unexpectedly strong development in this area, then, after the recent fall in prices, triggered by rising interest rates and fears of recession, the securities should also gain momentum. Last week, the Munich-based company also laid the cornerstone for the construction of a new production facility in Malaysia, which will cost more than EUR 2 billion. Infineon thus began the construction of the third fab module for the production of power semiconductor wafers, which was announced in March 2022. Construction works in this area should be completed by mid-2024. According to the company, at full production capacity, the new production facility will enable an additional annual sales contribution of up to EUR 2 billion for complex semiconductor products made of silicon carbide (SiC) and gallium nitride (GaN). In total, up to 900 new jobs are to be created. With the new system in Asia, Infineon primarily wants to support its own 300 mm production at the German plants in Villach and Dresden. The planned production capacity of SiC and GaN-based power semiconductors should therefore be significantly expanded. Especially since the global demand for such high-performance semiconductors is currently increasing enormously as these chips are installed in electric vehicles, charging and storage infrastructures, and renewable energy, among others. Currently, Infineon supplies more than 3,000 customers around the world with products based on SiC technology. It ultimately supports many companies from the energy, photovoltaic and car manufacturers, as well as producers of e-chargers. By mid-2025, the company even plans to sell approximately $ 1.0 billion SiC semiconductors. However, Infineon also aims for above-average future growth for the GaN market. From the last 47 million, the division’s revenues are expected to grow twentyfold to $ 801 million by 2025. In any case, this share only has a P / E ratio of just over 12. Infineon has a return on equity of over 10% and is also in an excellent financial condition with a current equity ratio of 49%. Thus, the document also meets the important criteria for listing in the high-quality German Stock Index. QIX Germany is a stock market index comprised of the top 25 German stocks. 25 actions are selected according to a set of tried and tested rules. The companies included in the index are characterized by high margins and returns on capital, as well as stable growth rates and solid balance sheets. Value criteria such as dividend yield, low price / earnings and price / sales ratio are also taken into account.
Eckert & Ziegler shares also posted strong gains on Monday by a good 2% to EUR 36.20 in the quality index. Articles by radiation experts and medical technology have suffered recently from a management-cut wage forecast. There has been a recent shift in this regard throughout 2022, despite the fact that profits from the medical business are expected to increase in purely operational terms. However, the original Eckert & Ziegler forecast included extraordinary gains from the sale or revaluation of assets. However, due to the currently delayed negotiations and the continued deterioration of the global economy, management estimates the probability of realizing windfall revenues of EUR 14.3 million in 2022 to be less than 50%. The company’s previous forecast, which assumes an increase in sales to around EUR 200 million by the end of December, remains unchanged. Nevertheless, the stock was heavily oversold by investors at the time, mainly due to Eckert & Ziegler’s downgraded earnings forecast for the year. As the new target for the core business of the nuclear medicine service provider is now around € 27 million. So far, a net profit of 38.3 million was expected. Euro. However, shortly after this target revision, a contract for the development and production of radiopharmaceuticals was announced with the American company Ratio Therapeutics, which in turn caused a strong increase in prices at Eckert & Ziegler.
The Berlin-based company announced that it has signed an agreement with the American pharmaceutical company Ratio Therapeutics for the joint development and production of innovative radiopharmaceutical products based on Lu-177 and Ac-225. However, Eckert & Ziegler did not disclose the financial details of the contract. Except that Ratio Therapeutics will benefit from the newly created GMP packages of the medical technology service provider at the US manufacturing facility in Boston. Eckert & Ziegler is doing well in its own medical business these days, primarily because it has expanded to Brazil in recent years, especially in the US, China and India. While business in China continues to be a warning, the company will continue to grow in the medium term with its radioactive components for medical, scientific and metrological purposes.
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