This is our first report on IPG Photonics, one of the leading manufacturers of lasers and amplifiers catering to materials processing across the globe. The company was off to a strong start in 2022 profiting from increased demand in Europe, North America, and Japan. The management has been seeing strong sales in welding, marking, systems, cleaning, 3D printing, semiconductor, and medical applications. They have also been reducing their dependence on the Chinese markets with sales outside of China increasing from 60% to 65% of their total revenue, demonstrating their progress toward improving their geographic balance. IPG Photonics also saw the expansion of medium-power and pulsed lasers, mainly fueled by increased demand for new applications. These lasers are employed in the fabrication of semiconductors, 3D printing, producing solar cells, and cutting foil. These applications call for lasers with high beam stability, quality, and dependability, qualities for which customers are familiar with IPG’s products. Additionally, the company introduced a third generation of the tool, which has a wider range of welding and cleaning capabilities for a broader range of materials. We initiate coverage on the stock with a ‘Hold’ rating.
Our Report Structure:
⦁ Company Overview
⦁ Investment Thesis
⦁ Key Drivers
⦁ Historical Quarterly Statement Analysis – Income Statement & Cash Flows
⦁ Historical Quarterly Balance Sheet Analysis
⦁ Historical Annual Financial Statement Analysis
⦁ Analysis Of Key Financial Ratios
⦁ Financial Forecasts For 3 Years
⦁ Forecasting The Capital Structure & Net Debt
⦁ Discounted Cash Flow Valuation
⦁ Trading Multiples
⦁ Key Risks
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