VAT Group AG is a Swiss-listed leader in high-performance vacuum valves, crucial for semiconductor, display, photovoltaic, and vacuum coating industries. Founded in 1965 and headquartered in Haag (St. Gallen), it operates production facilities in Switzerland, Malaysia, and Romania, and serves 29 countries. In 2024, VAT achieved net sales of CHF 942 million and an EBITDA margin of 31.2% ir.vatvalve.com+11en.wikipedia.org+11webdisclosure.com+11.
📈 Investment Pitch Deck
1. Business Overview
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Core Segments:
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Valves: 82% of turnover (~CHF 775 m in 2024), with a dominant semiconductor market share (~75%).
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Global Service: 18% of turnover (~CHF 168 m), includes spare parts, maintenance, repairs and upgrades.
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2. Market Position & Tailwinds
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Tech leadership: World-leading in vacuum valves for semiconductors and advanced industries, with extensive R&D investment (CHF 61 m in 2024, ~6.5% of sales).
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Geographic exposure: 67% sales in Asia, 19% US, 14% EMEE.
3. Recent Financial Highlights (2024 vs 2023)
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Order intake surged +49% to CHF 1,033 m; backlog rose +27% to CHF 370 m.
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Revenue increased +6% to CHF 942 m; EBITDA grew +8% to CHF 294 m; margin steady at ~31.2%.
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Net income up +11% to CHF 212 m; EPS +11% to CHF 7.06; consistent dividend CHF 6.25/share.
4. Strategic Growth & Outlook
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Capacity expansion: New manufacturing site Penang 1B increases annual output >CHF 1 billion.
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Innovation expansion: Opening Innovation Centre in Haag in April 2025.
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2025–29 Targets: Revenue growth mid-teens %, sustained 30–37% EBITDA margin, ~60–70% FCF conversion, ROIC >45%.
5. Risks to Consider
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Cyclicality: Semiconductor and advanced-industry demand fluctuations may affect volumes—2023 saw a -23% revenue drop.
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FX exposure: Strong CHF vs USD had ~–3pp revenue impact in 2024.
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Execution & capacity: Scaling new sites and innovation center requires disciplined execution and market ramp recovery.
✅ Investment Summary
VAT Group presents a compelling investment case:
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High-margin, tech-driven business with leading market share in critical semiconductor supply.
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Strong financial growth and robust cash flows, focused on dividend-friendly policy.
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Forward-looking strategy, well-prepared for the next semiconductor cycle.
As the sector recovers, VAT’s investments in R&D and capacity add upside, though investors should monitor cyclicality and currency risks.