Kylin Int’l Machinery Limited
Address: 19#, Haoxin street, nanchen village, daojiao town, dongguan city. Guangdong province China.
|Highcon shares tank on poor results
Shares in Highcon have tanked after the manufacturer announced disappointing half-year results and accountants added a going concern note to its figures.
The Israeli firm develops post-press equipment for cutting and creasing that aims to transform time-consuming traditional processes into digital production.
Its biggest shareholders are Benny Landa’s Landa Ventures and investment firm JVP.
Sales for the half-year to June slumped by 63% to $3.4m (£2.7m), and the business made an operating loss of $11.3m.
Israeli financial and tech specialist Calcalist reported that accountants had added a going concern note to Highcon’s accounts.
When Highcon floated on the Tel Aviv Stock Exchange in 2020 the business was valued at $190m.
Yesterday, (3 September), its share price fell to a new all-time-low of NIS28.4.
Its current market capitalisation is NIS29.781m, around $7.8m.
The firm’s key products are the Euclid for short-run production in folding cartons and corrugated, and the Beam 2 and Beam 2C for medium and longer runs.
While the business sees a vast potential market for its technology, the development and introduction has proved costly.
Landa has previously voiced his support for Highcon’s long-term prospects. Speaking in 2021 he said: “When you start a revolution in a big market, it takes time, and you need a great deal of patience. It takes time both to develop the technology and to educate the market - that's how it is when you make a fundamental, revolutionary change.”
In a July presentation to investors, Highcon said the during this year, the company “will complete the installation of all changes and improvements to all systems in the field, a fact that is expected to help the service system reach operational profitability as early as 2024 and will have a positive effect on increasing revenues from consumable products”.
It plans to preview its next-generation device at Drupa 2024, with commercial availability slated for 2025.
Highcon said that each system was expected to generate, during a period of 7-10 years, “revenue from consumables in the amount of about $2-$3 million dollars with a gross profit < 60%”.
The company had hoped to raise a further $3.87m, but Calcalist said it only managed less than half of that, at $1.58m, primarily from existing shareholders, and described Highcon as “actively seeking partners and additional funding sources”.
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|| 发布时间：2023.09.05 来源： 查看次数：212