Carnegie Investment Bank
Fingerprints
Date Title Alternative
2024-05-13 Accelerating the transformation Download | Show Close
2024-05-02 Discontinuing Mobile Download | Show Close
2024-04-29 Rights issue of SEK310m Download | Show Close
2024-04-05 Further biometric card launches in the market Download | Show Close
2024-02-20 At the start of a transformational journey Show Close
2024-02-06 Asus launches PC with Fingerprints's MoC solution Download | Show Close
2024-01-10 Better demand for mobile phones in China Download | Show Close
2023-10-20 Gross margin bottoms at low level Show Close
Research | 20 Oct 2023 | Fingerprints

Gross margin bottoms at low level

 

Sequential stabilisation in sales and gross margin

Sales were up in Mobile, PC, and Payments, plus in Access beyond Asia, and the group saw y/y growth from low levels. Access was weaker in Asia, chiefly on account of lower demand for door locks owing to a poor development in the construction industry. Intensive price pressure persists in Mobile, as inventory levels in the value chain remain high. Fingerprints’ inventories should have normalised by year-end, while it will take longer for its competitors’ stock levels to follow suit. The company is still taking market share in PC. The ongoing price pressure on capacitive sensors for mobile phone manufacturers has kept the gross margin low, but largely unchanged from Q2 at around 13%

Launching cost-cutting programme and new strategy

To meet the challenging market conditions, the company is launching a cost cutting programme aimed at saving some SEK 204m and halving operating expenses. Restructuring costs are expected to reach SEK 62m. The company will also implement a new platform strategy with the intention of spurring growth in areas where it is not yet present. The majority of its sales currently stem from fingerprint modules for consumer electronics.

 

Fair value adjusted for new number of shares

Fingerprints’ transformation into a company with less focus on capacitive sensors for mobile phone manufacturers continues. This new strategy is a further step along this path. The new CEO will implement this new strategy and organisation from the autumn and during 2024, giving further opportunities for us to analyse the new strategy in more depth. The refinancing has been completed and the bond issue of SEK 300m resolved. We adjust our fair value to account for the new number of shares, taking it to SEK 4.8–5.0 (7–8).

 

Download (EN)
2023-08-10 IDEX's Q2 indicates ongoing acceleration for biometric card Show Close
2023-08-08 New partnerships indicate gearing up of business beyond Mobile Show Close
2023-07-21 Recovery in Mobile; further growth in PC Show Close

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