Bernin site visit: operations look better than the numbers suggest

研报英文原文证据摘录

Bernin site visit: operations look better than the numbers suggest

UpdateMmargins. The exact approach, however, may vary significantly by customer and

product.

...but Soitec is careful not to repeat past mistakes. Management is positive, but

still unwilling to turn the photonics opportunity into a firm multi-year number. That

stance seems sensible given the pace of change in AI data centre build-out, the lack

of full standardisation and the scars from earlier forecasts that did not play out as

expected. Management appreciates the demand, but acknowledges that many

variables are to be considered and is careful not to communicate beyond its current

visibility.

In the meantime, the focus is on delivery against plan. Outside photonics, the visit

still showed a company working through the basics. The (relatively new)

management is dealing with legacy issues while also benefiting that some earlier

decisions that resulted in margin pressure, like investing heavily in the

manufacturing infrastructure, are now turning into an unexpected tailwind. But even

though the environment has noticeably changed for the better, management is

sticking to its plan. Soitec is reducing cost, seasonality and working capital where

possible and making tactical moves such as airlifting tools from fabs not yet

qualified for certain photonics products into Bernin, where capacity can be used

sooner.

We are constructive on Soitec's opportunity, and its ability to execute on it. The

visit supports the view that the market's scepticism around Soitec's operational

abilities is too harsh. Mistakes may have been made in the past, especially on the

customer side, but Soitec runs a more impressive, high-tech manufacturing process

than the market may assume.