XP Power Limited (XPP.L) | Investment Case

1. Company Snapshot

1.a. Company Description

XP Power Limited, an investment holding company, designs and manufactures power supply solutions in Europe, North America, and Asia.The company offers AC-DC power supplies, DC-DC converters, high voltage DC-DC converters, high voltage AC-DC power supplies, RF power systems, EMI filters, custom power supplies, and 3 phase power sources.It also offers engineering services.

The company serves healthcare, industrial technology, and semiconductor equipment manufacturing industries.XP Power Limited was founded in 1988 and is based in Singapore.

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1.b. Last Insights on XPP

XP Power Limited's recent performance was driven by the announcement of a potential takeover bid by Advanced Energy Industries, which could be difficult to reject according to Jefferies. The all-cash offer represents a significant premium to XP Power's share price, indicating a strong interest in the company. Additionally, the bid is expected to strengthen Advanced Energy's position in the precision power industry.

1.c. Company Highlights

Last Price	930
Change Percentage	-2.72%
Open	959.7
Previous Close	956
Market Cap ( Millions)	261
Volume	20256
Year High	1420
Year Low	600
M A 50	963.7
M A 200	876.58

FCF Yield	10.78%
Dividend Yield	0.00%
ROE	-8.40%
Debt / Equity	71.56%
Net Debt / EBIDTA	1029.91%
Price To Book	1.37
Price Earnings Ratio	-18.05
Price To FCF	9.28
Price To sales	1.13
EV / EBITDA	34.66

2. Transcript Summary

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3. NewsRoom

Britain’s biggest stock broker poised to approve £5.4bn Abu Dhabi-backed takeover

Jun -18

Source:

London-listed XP Power shares slump as Advanced Energy ends potential takeover bid

Jun -18

Source:

Advanced Energy (AEIS) Raises Offer to Buy XP Power Limited

May -22

Source:

New XP Power bid may be difficult to reject - Jefferies

May -21

Source:

The past three years for XP Power (LON:XPP) investors has not been profitable

May -11

Source:

Estimating The Intrinsic Value Of XP Power Limited (LON:XPP)

Apr -24

Source:

Should You Be Impressed By VEON Ltd.'s (NASDAQ:VEON) ROE?

Apr -13

Source:

With 70% ownership of the shares, XP Power Limited (LON:XPP) is heavily dominated by institutional owners

Apr -08

Source:

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (8.62%)

6. Segments

Industrial Technology

Expected Growth: 9.33%

XP Power Limited's Industrial Technology segment growth of 9.33% is driven by increasing demand for high-reliability power solutions in industrial automation, medical devices, and renewable energy systems. Additionally, the company's focus on research and development, strategic acquisitions, and expansion into new geographies have contributed to its growth momentum.

Semiconductor Manufacturing Equipment

Expected Growth: 7.77%

XP Power Limited's Semiconductor Manufacturing Equipment segment growth of 7.77% is driven by increasing demand for advanced semiconductor devices, growth in IoT, AI, and 5G technologies, and rising adoption of electric vehicles. Additionally, the company's focus on innovation, expanding product portfolio, and strategic partnerships contribute to its growth momentum.

Healthcare

Expected Growth: 8.5%

XP Power Limited's 8.5% growth in Healthcare is driven by increasing demand for medical devices, rising healthcare expenditure, and growing need for efficient power solutions in medical equipment. Additionally, the company's focus on product innovation, expanding customer base, and strategic partnerships contribute to its growth in this segment.

7. Detailed Products

DC-DC Converters

High-reliability DC-DC converters for industrial, healthcare, and technology applications

AC-DC Power Supplies

High-efficiency AC-DC power supplies for industrial, healthcare, and technology applications

High Voltage DC-DC Converters

High-voltage DC-DC converters for industrial, healthcare, and technology applications

RF Power Supplies

High-reliability RF power supplies for industrial, healthcare, and technology applications

Programmable Power Supplies

Programmable power supplies for industrial, healthcare, and technology applications

8. XP Power Limited's Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for XP Power Limited is moderate due to the availability of alternative power solutions.

Bargaining Power Of Customers

The bargaining power of customers is low due to the specialized nature of XP Power Limited's products.

Bargaining Power Of Suppliers

The bargaining power of suppliers is moderate due to the presence of multiple suppliers in the market.

Threat Of New Entrants

The threat of new entrants is high due to the relatively low barriers to entry in the power supply industry.

Intensity Of Rivalry

The intensity of rivalry is high due to the presence of several established players in the market.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	45.20%
Debt Cost	3.95%
Equity Weight	54.80%
Equity Cost	10.76%
WACC	7.68%
Leverage	82.47%

11. Quality Control: XP Power Limited passed 2 out of 9 key points

Strong Liquidity

Low Deb

Strong Interest Coverage

Healthy Cash Flow

Operating Inefficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Kelsian

A-Score: 6.1/10

Value: 4.2

Growth: 7.2

Quality: 5.0

Yield: 5.8

Momentum: 7.0

Volatility: 7.3

1-Year Total Return ->

Acuity Brands

A-Score: 5.2/10

Value: 2.8

Growth: 6.8

Quality: 7.0

Yield: 0.0

Momentum: 7.0

Volatility: 7.3

1-Year Total Return ->

Hubbell

A-Score: 5.1/10

Value: 2.0

Growth: 6.8

Quality: 7.2

Yield: 3.0

Momentum: 4.0

Volatility: 7.7

1-Year Total Return ->

XP Power

A-Score: 4.6/10

Value: 5.5

Growth: 4.3

Quality: 4.1

Yield: 1.7

Momentum: 4.5

Volatility: 7.3

1-Year Total Return ->

nVent Electric

A-Score: 4.3/10

Value: 1.4

Growth: 5.4

Quality: 6.6

Yield: 2.5

Momentum: 7.5

Volatility: 2.7

1-Year Total Return ->

Novonix

A-Score: 3.2/10

Value: 7.0

Growth: 3.1

Quality: 3.5

Yield: 0.0

Momentum: 2.0

Volatility: 3.7

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

-4.62%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

7.68%

XP Power Limited - SG9999003735

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on XPP

1.c. Company Highlights

Weak Momentum

Higher Yield

Fairly Valued

Average Quality

Expensive

Average Growth

Stable Momentum

Strong Momentum

Medium Volatility

Less Volatile

Lower Quality

Earnings Miss

2. Transcript Summary

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (8.62%)

6. Segments

Industrial Technology

Expected Growth: 9.33%

Semiconductor Manufacturing Equipment

Expected Growth: 7.77%

Healthcare

Expected Growth: 8.5%

7. Detailed Products

DC-DC Converters

AC-DC Power Supplies

High Voltage DC-DC Converters

RF Power Supplies

Programmable Power Supplies

8. XP Power Limited's Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: XP Power Limited passed 2 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

9.3$

Current Price

9.3$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA