Yesterday we published our One-pager on Asetek, a Danish-based company that designs, produces, and sells gaming hardware with a leading position in liquid cooling solutions for high-performance personal computers, and a small but growing presence in the SimSports market.
Asetek has a top market position in its liquid cooling business area, in a market dominated by three leading players, including Asetek. Its liquid cooling business remains operationally profitable with solid EBITDA margins. The company looks towards using its cash flows from liquid cooling to develop its SimSports activities, where it identifies a growing and fragmented market.
The company faced a challenging 2022, experiencing demand destruction as the world came out of lockdown and shifted spending away from goods and towards services. Asetek also faced economic headwinds from inflation, supply chain issues and component shortages. While market conditions remain uncertain with global recession fears, conditions appear comparatively more normalised going into 2023, which can help support a return to revenue growth in line with the company’s ambition of 15% revenue CAGR towards 2025.
In the below video, you can get an overview of the investment case in Asetek, and to learn more, you can read the full one-pager, which includes key investment risks, key investment reasons, a comparative valuation against its peers and more. Link: https://lnkd.in/eDk8bqRB
Asetek is a global leader within liquid cooling solutions for high-end PC’s and also produces high-end equipment for SimSports. Asetek was listed on the OBX Oslo Stock Exchange in 2013. Asetek’s liquid cooling of high-end PC’s and eSports enthusiasts is its largest segment. Its sealed loop liquid cooler supports the thermal challenges of the computers and can also be implemented at data centers to provide significant energy savings and recapturing of heat against the air cooling industry norm; however, this segment remains relatively smaller. In 2021 Asetek made its first expansion into the SimSports Gaming market with its high-end SimRacing pedals, designed to create an immersive experience for sim racers. Asetek plans to expand further into the SimRacing value chain with ambitions to release wheelbases, steering wheels, shifters, and other end-user customization options.
Read more on company page