Thin Film Electronics ASA (LON:THINNOK) has had a very strong few months in terms of business development. EAS orders are back in volume (backlog: 16m units) and the launch of the CNECT platform has also created momentum in pilots and field trial orders for THIN’s NFC labels. Additionally, after many delays, Thinfilm has launched its first hybrid commercial sensor product, using low-cost R2R technology to print the displays in Sweden. With US R2R plans reported to be on track and on budget, we see good potential for positive newsflow-led impetus for the share price in coming quarters.
R2R rollout is on track... and may be accelerated
Management has reported that plant acquisition for the move to roll-to-roll (R2R) printing in the US is on track and on budget ($32m). CEO Davor Sutija has also flagged the potential to accelerate the programme if demand continues to surprise on the upside. In this case we see a likely positive impact on the group DCF valuation as likely higher cash flows from the stronger demand scenario offset higher early capex impact.
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