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Investing.com -- Aalberts (AS:AALB) stock surged 5.5% after the company announced an agreement to acquire Singapore-based Grand Venture Technology (GVT) for SGD 319 million (€220 million), expanding its presence in Southeast Asia’s semiconductor market.
The acquisition provides Aalberts with access to GVT’s precision engineering capabilities and customer base in the semiconductor, life sciences, and aerospace sectors. GVT operates six facilities across Singapore, Malaysia, and China, generating revenues of SGD 160 million (€110 million) in FY24 with a strong 27% CAGR during FY20-FY24 and a 19% EBITDA margin.
This strategic move will increase Aalberts’ semiconductor segment revenues by 22% and add 3% to group revenues. The company expects the acquisition to be accretive to its semiconductor EBITA margin within 1-2 years after closing, compared to the 14.2% margin reported in FY24.
Jefferies commented: "We expect 1H25 results to reflect an 8% decline in EBITA, with a 5% recovery in Building, more than offset by declines of 13% in Industry, and 34% in Semicon. After challenging market conditions in 1H25, earnings are expected to be relatively more stable for 2H25E, followed by a FY26E recovery. We think Aalberts’ record 50% valuation discount to peers is set to narrow on improving earnings momentum, and progress towards Thrive 2030."
Investors will be watching for Aalberts’ first half 2025 interim results, scheduled for release on July 24.
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