IQE’s diversification strategy has delivered a 71% jump in adjusted profit before tax during H116. Strong growth in photonics revenues was a key element of this improvement. This was boosted by a return to growth, albeit modest, in the wireless sector and contribution from licence income. We leave our estimates broadly unchanged, noting that this further confirmation of growth through diversification should support a continued upwards re-rating of the shares.

13 Sep 2016
Photonics - light from a rising star

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Photonics - light from a rising star
IQE plc (IQE:LON) | 7.6 0 (-2.6%) | Mkt Cap: 74.2m
- Published:
13 Sep 2016 -
Author:
Anne Margaret Crow -
Pages:
7 -
IQE’s diversification strategy has delivered a 71% jump in adjusted profit before tax during H116. Strong growth in photonics revenues was a key element of this improvement. This was boosted by a return to growth, albeit modest, in the wireless sector and contribution from licence income. We leave our estimates broadly unchanged, noting that this further confirmation of growth through diversification should support a continued upwards re-rating of the shares.