Equity Analysis /
United Kingdom

GB : XP Power - Strong start, upside risks remain

    Daniel Cunliffe
    Daniel Cunliffe

    Analyst - Capital Goods

    Christian Hinderaker
    Christian Hinderaker

    Analyst - Capital Goods

    CGS-CIMB
    13 April 2021
    Published by

    Q1 organic sales (+23%) came in at the top-end of expectations, with broad-based revenue strength globally, continued strength in Semi-Fab and clear recovery within Industrial. Like most industrials, comps get tougher from H2 and component shortages may add to production costs. Thus, we tweak gross margins lower. We raise FY22E growth in Semis, leaving our FY22 estimates c.10% ahead of current consensus, due to our industrial boom thesis.