Katek Action Forum

Good purchase from Kontron! $KTN (-1,11 %)

The IT company Kontron takes over the electronics specialist $KTEK . Shareholders are to be paid €15 per share.

The acquisition will pay off handsomely. Katek's product range is very specific, future-oriented and broadly applicable. Expansion into North America has already followed. A nice move!

In addition, for me, a nice gift with a return of ~48%. 🚀

This means that (unfortunately) the next small cap after Cropenergies $CE2 from my portfolio.

A new and small position in the portfolio.

I have known the company for a very long time, even before the IPO in 2021.

Katek $KTEK - Multi-faceted and self-proclaimed small champion of electrical engineering.

What does Katek do?

Katek is a European group of companies in the field of electrical engineering. They develop and manufacture customer-specific electronic assemblies for various industries. Accordingly, they act as a contract manufacturer.

What are well-known brands?

The company is known in particular for its inverter division Steca, as well as eSystems - the mobility division.

Katek's entire portfolio thus extends from the home and the car to industry and medicine.

My scenario:

Last year, a loss of €4 million was posted. This year, however, they are aiming for a profit of €8 million. Quite realistic. The order books are completely filled for the entire year. Thanks to new long-term contracts, margins of around 10% are now quite realistic.

These include, for example, the cooperation between the subsidiary Tyde and BMW in the area of high-speed boats, as well as a framework agreement for one million "smart" wallboxes and, finally, the presentation of a new control center system for home emergency call systems.

Due to the low market capitalization, I only decided to make a small entry. I am very excited about the company's development and would potentially also expand the position in the future, provided that the expectations can be met halfway. The general market in Europe should allow it in the next few years anyway.

Subsequent purchase