Mauna Kea reported H1/2018 financial results broadly in line with our expectations. The net loss of €6.8m (18% YoY) was mainly due to a 14% decrease in total revenue associated with the revenue lag under the new consignment business model, and a 4% increase in operating expenses related to strengthening of the commercial infrastructure in the US. We see the strong reported growth in installed base of consignment systems as a key performance indicator and expect revenue on the back of new system placements to be realised from Q3/2018E, enabling the company to meet our recently adjusted FY2018E sales of €8.3m. On our view, low utilisation of consignment systems represents the main risk, but we expect the strong commercial infrastructure in the US to form a solid foundation for sustainable future growth. We maintain and reiterate both our OUTPERFORM recommendation and €4.10 target price.
25 Sep 2018
H1 results reflect continued focus on the US
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H1 results reflect continued focus on the US
Mauna Kea Technologies SA Class O (0P5I:LON) | 0 0 0.2% | Mkt Cap: 75.0m
- Published:
25 Sep 2018 -
Author:
Martin Brunninger -
Pages:
5
Mauna Kea reported H1/2018 financial results broadly in line with our expectations. The net loss of €6.8m (18% YoY) was mainly due to a 14% decrease in total revenue associated with the revenue lag under the new consignment business model, and a 4% increase in operating expenses related to strengthening of the commercial infrastructure in the US. We see the strong reported growth in installed base of consignment systems as a key performance indicator and expect revenue on the back of new system placements to be realised from Q3/2018E, enabling the company to meet our recently adjusted FY2018E sales of €8.3m. On our view, low utilisation of consignment systems represents the main risk, but we expect the strong commercial infrastructure in the US to form a solid foundation for sustainable future growth. We maintain and reiterate both our OUTPERFORM recommendation and €4.10 target price.