SUSS MicroTec: Margin Erosion In FY25 Has Not Broken The Thesis
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Mandela Amoussou1.79K FollowersFollow5ShareSavePlay(17min)CommentsSummarySUSS MicroTec remains rated a Buy, despite FY25 margin and order intake challenges, with revenue guidance likely to be met.SESMF’s strategic positioning in advanced packaging, especially as sole supplier to TSMC’s CoWoS-L and majority share at Samsung and Micron, underpins its defensible moat.Margin recovery in FY26 is critical; Q4 results must show gross margin improvement and order intake rebound to validate the current $68 per share valuation.Risks include persistent cost pressures at Zhubei, customer concentration, and ongoing export controls, but industry-wide tariff exposure is not company-specific.
Getty Images This is my third coverage of SUSS MicroTec (SESMF). The company is a well-run one, and I revisit SUSS MicroTec around earnings. My last article on this stock was a year ago, when the Q4 FY24This article was written byMandela Amoussou1.79K FollowersFollowI started out as a crypto investor a decade ago and remain deeply active in the crypto space. I cover Bitcoin miners, digital asset treasuries, and crypto ETFs majorly, but I also seek alpha in tech equities, especially in emerging sectors like quantum computing and orbital intelligence. I have initiated coverage as a first analyst here on Seeking Alpha to cover names like SealSQ (LAES), Rezolve AI (RZLV), among others, with Buy ratings. Several of these tickers have delivered double to triple digit returns since initial coverage. I try to go beyond surface level metrics and headline numbers. I focus on fundamentals, capital allocation, momentum, market structure, and management execution. And most of all, your comments matter. Even the critical comments are very much welcome, as they improve my work and sharpens the analysis. I value thoughtful disagreements. I look forward to learning and compounding together in the market. Best, MandelaAnalyst’s Disclosure: I/we have a beneficial long position in the shares of SESMF either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.