$KTN (-1,29 %) Today I would like to introduce you to Kontron in a little more detail, as an interesting zone has been reached both fundamentally and in the chart.

Roughly speaking, Kontron is a full-stack provider (hardware and software) of IoT solutions.

Trends that Kontron plays on:

• IoT
• Industry 4.0 (i.e. networked production machines)
• automation
• Transportation (IoT data networking for trains)
• Defense (especially secure communication solutions)
• Energy and smart home (AI could also be seen here)

With KontronOS, Kontron offers a secure IoT operating system that has been specially developed for machines.

KontronGrid allows up to one million IoT devices to be connected with each other.

Last year, Kontron acquired the Katek Group, adding smart home applications and intelligent energy control (e-cars, photovoltaics) to its portfolio.

Kontron generates the majority of its sales (over 80%) in Europe and the rest mainly in the USA and China. European sales are growing significantly faster.

Summary/investment thesis:

Kontron is a very broadly positioned industrial group that manufactures and services networked technologies for production, defense and energy (AI was also mentioned here at one point). There is an ever-increasing proportion of software, which is slowly increasing margins (gross margin is now around 36-40%).

Kontron has been able to announce new orders in recent months (and also today):

• with automotive manufacturers for 5G communication modules for vehicle networking (volume approx. €250m)
• in the defense sector for high-performance communication computing units for surveillance (volume approx. 165M€)
• in the area of defense for sensors for autonomous air traffic control (20M€)
• in the area of transportation for an innovative platform for interlocking systems

There is also a collaboration with Qualcomm $QCOM (-4,11 %) to revolutionize the areas of edge computing and artificial intelligence.

The order backlog is growing steadily and the company is really playing on almost every trend. According to its own statements, there are high barriers to entry.

Here is the CEO's comment:

"Kontron has become the global technology leader of IoT technologies. With our secure KontronOS operating system, innovative solutions for ultra-fast 5G data communication and our de facto IoT standards for special markets such as railroad technology, defense and smart charging technology, we are driving future applications such as artificial intelligence - based on huge amounts of data that only IoT-enabled devices can deliver. We are therefore only at the beginning of a promising growth cycle in IoT technology."

Kontron is currently valued relatively favorably with a P/E ratio of 14.5 and a forward P/E ratio of 11 (5-year average: 19). Sales growth over the next few years is expected to be around 10%, while profits are expected to grow by 20%pa. The stock has not made a great return so far and is moving sideways, but it has risen quite a bit in the last few months. There is a resistance at around 22-22.5€ which has been tested several times (and is also ATH). There is also a dividend yield of 3.2%. The dividend should also continue to grow strongly.

PS: Kontron is sitting on a huge treasure trove of data (from all the IoT machines etc.). This could be leveraged and AI could also be used here, e.g. for digital twins or to optimize production, similar to what $SIE (-0,45 %) Siemens is currently doing

Hello everyone,

My current portfolio was completely reorganized after the takeover of $COP (-0,63 %) at the end/beginning of the year. I have reinvested almost all of the liquidity freed up as a result in small-mid caps. I also see further potential here in the coming years due to more flexible adaptability (with regard to the USA) and financing costs. At the beginning of the year $SESG (-0,78 %)
$NA9 (-0,29 %)
$TNIE (+0,95 %)
$KTN (-1,29 %)
$ALCRB (-0,25 %)
$DSFIR (-0,42 %) made it into my portfolio. Today, I swapped the pipe burner $P911 (+0,35 %) in $MUM (+0,16 %) . My next idea would be $SIX2 (-0,48 %) I would like to hear what else you have on your watchlist in this segment.

Greetings

Micha

Kontron $KTN (-1,29 %) has exceeded its earnings target for 2024 and expects to continue on its record course in the current year.

According to initial calculations, the Austrian specialist for autonomous communication between devices ("Internet of Things, IoT") has exceeded its target for the operating result (EBITDA) of EUR 190 million, Kontron announced on Tuesday.

Compared to the previous year's figure, the increase will probably be over 50 percent.

Turnover will increase by more than 40 percent to over EUR 1.7 billion. For 2025, the Management Board is forecasting significant organic revenue growth to EUR 1.9 to 2.0 billion and EBITDA of at least EUR 220 million.

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$KTN (-1,29 %)

The expert for embedded computer technology has received a major order. It involves monitoring systems. The branch in Augsburg is also benefiting.

Kontron, a leading global provider of Internet of Things (IoT) and embedded computing solutions, has received a major order from a leading European company in the fields of defense, security and aerospace technology. Kontron reports this on its homepage. The order is expected to have a total volume of around 165 million euros. The Augsburg branch will benefit from this, among others, a spokesperson confirmed when asked. Kontron Europe is based in Kriegshaber.

The order is for the provision of solutions for mobile and stationary monitoring applications. The customer specializes in the development of state-of-the-art sensor technologies for military, civilian and commercial applications and will use Kontron's system solution to support its advanced surveillance technology. In this case, the solution is specifically designed for military purposes.

Kontron once took over a division of the former Fujitsu site in Augsburg

"This order is a significant milestone and underlines our partners' confidence in our leading expertise in state-of-the-art technologies for defense applications," said Hannes Niederhauser, CEO of Kontron AG. In this area, the company works exclusively with NATO countries. Various units of the company are pooling their expertise for the implementation. The branch in Augsburg is also involved.

Kontron is listed on the SDAX and TecDAX of the German Stock Exchange and employs around 8,000 people in more than 20 countries. The Kontron Europe division is based in Augsburg. In 2017, the Austrian company S&T took over Kontron and has operated under the name Kontron AG since then. S&T and Kontron made headlines in Augsburg in 2019 when they took over the industrial mainboard business of Fujitsu, which closed its Augsburg site.

https://www.augsburger-allgemeine.de/augsburg/augsburg-kontron-erhaelt-millionen-auftrag-aus-dem-bereich-verteidigung-104418209

Another major order this month for Kontron AG $KTN (-1,29 %)

Kontron has received a significant order from

from a leading European company in the defense, security and aerospace technology sectors.

The order has an expected total volume of around EUR 165 million and includes the provision of high-performance VPX computing and communication computing units for mobile and stationary surveillance applications.

The customer, which specializes in the development of advanced sensor technologies for military, civilian and commercial applications, will

Kontron's system solution to support its advanced surveillance technology.

Kontron supports the customer with its long-standing expertise in military-based applications with a high-performance, extremely robust system solution.

The solution is specially designed for military applications and offers error-free, reliable and secure operation even under extreme conditions.

and secure function even under extreme conditions.

With this order, Kontron strengthens its position as a leading provider in the field of defense technologies and underlines the importance of state-of-the-art, secure and reliable solutions for global security requirements.

Kontron works in this sensitive area exclusively with

exclusively with NATO countries and guarantees the highest standards as a strategic

the highest standards.

Kontron
$KTN (-1,29 %)

US order underpins Kontron's bottoming out.

A US order from the defense sector for the specialist for embedded computer systems underpinned the bottoming out of Kontron's shares on Wednesday.

$KTN (-1,29 %) Kontron sees the new business relationship as a door opener for further tenders with higher volumes and new prospects in the area of autonomous control of land vehicles and other growing market and customer segments.

Thanks to the Katek takeover, a record profit was achieved in 2024.

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Kontron $KTN (-1,29 %)

Kontron AG, a leading global provider of IoT technology, today announced its results for the third quarter and the first nine months of the 2024 financial year. The company recorded both revenue growth and a significant increase in earnings.

After Katek acquisition: Kontron posts record operating profit

The Austrian technology group Kontron has earned more in its operating business than ever before following the Katek takeover. Earnings before interest, taxes, depreciation and amortization (EBITDA) for the third quarter soared by 70 percent year-on-year to EUR 59.4 million, as the SDax company announced in Linz on Wednesday.

According to the company, this was the highest figure in its history. At almost 428 million euros, Kontron's turnover between July and September was around 45 percent higher. On the bottom line, the company earned 24.4 million euros after minority interests - a good five million more than in the same period last year.

• Significant jump in EBITDA by 70.1% to EUR 59.4 million in Q3 2024
• Gross margin rises to 44.7% in Q3 2024 - transformation takes effect
• Significant sales growth of 44.9% to EUR 427.7 million in the third quarter of 2024
• Order backlog increases to EUR 2,056 million with a book-to-bill ratio of 1.21

Kontron achieved revenue growth of 44.9% to EUR 427.7 million in the third quarter of 2024 (Q3 2023: EUR 295.1 million) EBITDA rose by 70.1% to a new record of EUR 59.4 million (Q3 2023: EUR 34.9 million). The EBITDA margin increased again and reached 13.9% (Q3 2023: 11.8%). Consolidated net profit after minority interests increased by 28.5% to EUR 24.4 million (Q3 2023: EUR 19.0 million).

The pleasing earnings performance particularly highlights the growth in the Software + Solutions segment within the Group and Kontron's transformation into a technology leader, which was particularly evident in the growth of the gross margin. This reached 44.7% in the third quarter of 2024 after 42.5% in the second quarter of 2024 and 40.1% in the same quarter of the previous year.

Operating cash flow amounted to EUR 19.6 million in the third quarter (Q3 2023: EUR 26.8 million). However, factoring was reduced again. The operating cash flow, adjusted accordingly, rose to EUR 27.9 million. The order backlog increased to EUR 2,056 million as at September 30, 2024 and thus to a new record level compared to the December 31, 2023 figure of EUR 1,686.2 million.

Looking at the first nine months of the 2024 financial year, the pleasing performance in the third quarter of 2024 resulted in revenue of EUR 1,207.7 million, up 44.7% on the previous year's figure of EUR 834.4 million. EBITDA in the first nine months of 2024 amounted to EUR 141.4 million, up 47.5% on the previous year (9M 2023: EUR 95.9 million).

Consolidated net profit after minority interests rose to EUR 62.3 million after nine months of the current year (9M 2023: EUR 54.6 million) or EUR 1.01 per share (9M 2023: EUR 0.86).

Operating cash flow amounted to EUR 2.8 million and, adjusted for the reduction in factoring, even amounted to EUR 68.8 million after EUR 34.1 million in the same period of the previous year.

Hannes Niederhauser, CEO of Kontron AG, comments: "The successful 9 months in the current year show that we did not promise too much with our forecast for 2024. The integration of Katek is proceeding according to plan and is almost complete. The consistent focus on technology combined with the reduction of unprofitable orders has led to significantly higher margins of 44.7% in the third quarter. Against the background of the successful business development in the first nine months of 2024 and the robust demand, Kontron confirms the profit target of EUR 190 million

EBITDA for 2024 (50% increase compared to 2023). The high order backlog also guarantees a continuation of the growth trajectory for 2025."

Hello everyone,

some of your contributions have motivated me to share something.

Briefly about me: I am 30 years old, employed and have a net income of approx. 3600€ (approx. 4000€ at the beginning of 2025). Quite a new father, so I'm curious to see how I can still maintain and increase my savings goals.

I had to more or less liquidate my savings account in 2021 due to a house purchase, otherwise I would probably already be a bit further ahead.

I'm currently saving €415 a month via savings plans and I also make one-off purchases when it suits me financially.

My portfolio is not yet clear enough for my taste. My goal is the following allocation:

60% ETF

20% individual shares

10% gold

10% P2P

Uniglobal is currently still quite strongly represented. This is a VWL legacy, as my bank advisor recommended it to me at the time. I haven't changed it yet as I had other focal points. But I'm aiming to do that. But I'm not yet sure what exactly I'm saving for.

My goal for the coming months and 1-2 years:

To $IWDA (-1,03 %) to ensure that the shares are redistributed automatically. I will leave P2P. I will buy gold as soon as I have cracked the 20k mark (as a reward, so to speak). I will also leave the individual shares I have. In some cases, I also save these via a savings plan ($KTN (-1,29 %)
$KO (+2,3 %)
$SHEL (-1,69 %) and $JNJ (+2,12 %) )

In 2 weeks I would like to invest about 1.5k of my Christmas money. Here, too, I am currently leaning towards $IWDA (-1,03 %) .

Overall, I'm trying to increase my savings rate, but I'll have to wait and see how this is possible due to my new role as a father. My mother is on parental leave and receives parental allowance.

What would you change in my portfolio if it were yours? I am grateful for any advice and look forward to your comments.

Your Dominik