Investment philosophy

Investment report September 2025 - View into the portfolio
 

Süss Microtec

Süss Microtec was last featured in the investment report in December 2023. Süss Microtec is a leading global manufacturer of microstructuring equipment for the semiconductor industry, particularly in the advanced backend (wafer bonding, backend lithography, photomask cleaning). Its products are central to chips in smartphones, laptops, MEMS, sensors and memory applications and score highly in terms of efficiency and sustainability. Süss Microtec is benefiting significantly from the global AI boom, particularly from strong demand for advanced backend solutions such as temporary bonding for high-bandwidth memory (HBM) chips. At the end of 2023, the company benefited from record orders worth around €100 million for temporary bonders for AI chip manufacturing. This demand drove sales in 2024 to €446 million, an increase of over 46% compared to 2023.

That is why the share was our top position in the ELM fund for a long time. In 2024, following strong share performance, larger holdings were sold at a good profit. The remaining holdings were sold in May this year, as we do not expect significant profit momentum over the next 18 months. 

At the end of July, Süss had to revise its business expectations for 2025 downwards following preliminary half-year figures. The gross margin is now expected to be 37–39% (previously 39–41%) and the EBIT margin 13–15% (previously 15–17%). The reasons for this are one-off effects from the ramp-up of production in Taiwan, value adjustments, higher R&D costs and an unfavourable product mix.

Since then, the share price has corrected from EUR 40 to below EUR 30. This has improved the share's risk/reward profile again. After 2023 and 2024 were characterised by strong order intake and growth – coupled with proceeds from the sale of MicroOptics – we now expect a consolidation phase in earnings.

As a long-term investor, we take our time because we believe it is better to invest in a company too early than too late. This is because all of the factors mentioned are fully known and therefore already discounted in the share prices. With a current market capitalisation of approximately EUR 460 million and a net cash position of EUR 120 million, the share is trading at a moderate EV/EBIT multiple of 6.8 on a 2026 basis. However, this assumes a worst-case scenario in which EBIT would fall by a good 25% in 2026. If the company succeeds in returning to the EBIT levels of the 2024 financial year in the medium term, the EBIT multiple would be an attractive 4.7.

Christoph Gebert (fund advisor)
Ehrke & Lübberstedt AG