Template for HA Research Notes - ISRA VISION AG

ISRA Vision
o In the metals industry, for example, Andritz Metals Division, a
leading global suppliers of rolling mills and strip processing lines,
believes that ISRA Vision (Parsytec) and Cognex are market
leaders in visual surface inspection technology.
o SMS Siemag, a major global supplier of metals production and
processing equipment, values the ability of a supplier to deliver
customised quality inspection systems, flexibility and a positive
track record of delivering in time.
o In the paper industry, ISRA Vision boasts a world unique and
most complete portfolio of inspection systems at several stages of
the production process, including wire & trim, pick-up, open draw,
press-to-dryer, pre-dryer, dryer, size press and calendar and
reeler.
o In the glass industry, ISRA Vision claims a unique positioning
due to its all-in-one camera design and unique high-speed LED
technology combining several optical channels.
o In the solar industry, supported by ISRA Vision’s recent
acquisition of Graphikon in 2010, the company is able to offer fully
automated inspection combined with 100% defect recognition.
• ISRA Vision’s track record of generating profitable growth over the last
decade at double-digit sales growth rates and always generating 2-digit
EBIT margins as well as a sound balance sheet (54% equity ratio, 30%
net gearing) matter to customers as it signals financial health and stability.
In summary, these strengths have resulted in a global #1 market position in
visual surface inspection technology mainly for continuous industrial
manufacturing processes for metal, glass and plastics/nonwovens and a
European #1 position in 3D vision systems, mainly supplied to the automotive
industry. The company claims a top 3 position in the solar glass and a top 3-4
position in the paper industry.
High R&D supplies competitive defence versus smaller competitors.
ISRA Vision’s size allows the company to spend high amounts on R&D (13%
of 2010 sales) to support its technological expertise. These sums are unlikely
to be matched by smaller competitors. Among the listed competitors, Cognex’
R&D budgets are higher in absolute terms, however, the product mix and end
market focus (mainly on semiconductor and electronics) is different compared
to ISRA Vision and therefore limits direct comparisons.
Peer group – R&D budgets
R&D (€ m) % of sales employees
in R&D
% of total
employees
R&D (€ m) % of sales employees
in R&D
% of total
employees
end of
fiscal year
ISRA Vision 11.0 15.1% 76 18% 10.2 15.5% 73 20% 30.09.
AVT 7.1 17.9% 60 29% 8.5 22.8% 75 33% 31.12.
Cognex 23.5 11.4% 184 22% 22.1 17.7% 168 23% 31.12.
Perceptron 5.2 14.0% 45 20% 5.7 13.0% 47 21% 30.06.
Source: company data, Hauck & Aufhäuser
2010 2009
5 Hauck & Aufhäuser Institutional Research