MILAN, May 20 (Class Editori) – Its 2018 turnover allowed Esautomotion – top player in the numerically controlled systems for machine-tool sector – to approach one of its biggest clients on a global scale: a Chinese group listed on the Shenzhen stock exchange, active in special industrial machinery (presses, lasers, and notching machines).
"At the moment, we would rather keep from revealing the name, because our Chinese client intends to announce our partnership during one of their conventions and benefit from the surprise effect," said Franco Fontana, President and major shareholder (39%) of Esautomotion, co-founder of the company with current CEO Gianni Senzolo (holding a 30% share), to Milano Finanza news outlet.
Yearly, the Chinese giant produces 2 thousand machines (1,200 presses, 400 lasers, and 200 notching machines), exporting 30% of its production abroad, and is now pursuing some important growth goals in China and in the world.
The Italian company is small – 18 million in turnover in 2018 – but profitable and cutting-edge when it comes to technology, so this new client will most certainly overturn the business’ figures on the Chinese market – where it gathered just about 3 million euro in 2018. The 1-million worth machinery that the Chinese group will be purchasing during the next 12 months comes as a replacement of its historical suppliers – one European and one Chinese. Now, following a long testing period, the agreement is already up and running.
"Esautomotion has been courting this important clients since 8 years ago, when it arrived on the Chinese market. Back then, we started from the first few manufacturers intending to develop an export business toward the west. Esautomotion started to sell, and thus to acquire clients, thanks to some of its most sophisticated machines," said Senzolo.
"We kept meeting Chinese clients, strong of the belief they would eventually start increasing their export rates as well as their technology level. We believe in the quality of our automation solutions, and rely on the references we can get from international clients as well as on our placing in the global competition. Last year, during the Euroblech Fair held in Germany in October, first a technical delegation and then the company's President approached us and said: now the time has come for us to work together," added Senzolo.
As for Italy, Esautomotion provides world top players in their respective sectors with its systems – including SCM for woodwork machinery, and Prima, for lasers. The group is investing a lot in the US and in emerging economies like Turkey – where it has already acquired a relevant market share – India, and South Korea. "Yet, the only place to win the machine-tool war is China," said Fontana, who knows the market very well after working for a long time as dealer for MTG, one of the Chinese machine-tool giants.
In due time, Fontana managed to understand that machine-tool production – where the EU is historically a top player – was slowly moving toward the Asian market and to China in particular. So, when he founded his company, he acted accordingly and opened a production base there.
"We expect to keep growing during 2019, even in the face of some indicators of global recession," added Senzolo. Esautomotion closed 2018 with a growth in revenues up 18.5% year on year, totaling 18.476 million euro, plus an adjusted EBITDA for 5.305 million (+15.3%) and adjusted net profits for 3.194 million (+30%). Their net financial position is quite solid, with a positive cash balance of 7.656 million by the end of last December, inclusive of all profits from the capital increase in connection with the IPO from July 2018. Their equity was at 15.223 million. All these figures project the group's profitability (EBITDA margin) to 30% - an excellence level, going arm in arm with enough liquidity to finance its acquisitions.
Their shares debuted on the stock market at 2.9 euro each, and attracted a demand four times higher than the offer, 40% of which coming from foreign investors. At the moment, their securities are listed at around 3 euro.
"Innovation, growth, international development, new application areas, product line expansion: these are our group's guidelines. We intend to strengthen Esautomotion's leadership role in our reference markets," promised Senzolo, adding that the profitability on performed investments is holding out at above 50% per year, granting one of the highest return on equity in the listing.
(Source:Class Editori)
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