Enedo doesn’t have its own thread here. I thought I’d start one now to increase knowledge and understanding of the company as a basis for investments.
According to its investor pages (which are, by the way, excellent!), Enedo describes its core mission as:
Our mission is to make electricity better for our customers – more reliable, safer, more efficient – and precisely suited to its intended use.
Enedo (formerly Efore) is a European designer and manufacturer of high-quality power electronics products and systems, whose products are suitable for critical functions in even the most demanding environments. Its headquarters are in Finland, and its sales, marketing, and R&D operations are located in Finland and Italy. In addition, the group has a sales and marketing unit in the United States and its own production facility in Tunisia.
In July 2019, Enedo sold the manufacturing of power supplies for mobile network base stations to a Chinese company. The sold business represented nearly half of the company’s total revenue, and the buyer also acquired ownership of the Efore brand and name. Enedo had been too small to succeed in the telecommunications sector without a partner. The base station business changed with the transition to smaller stations, and Enedo / Efore failed to make the operation profitable.
As a result of the transaction, the company changed its name (Enedo, 2/20) and announced its focus on developing the remaining Digital Power & Light and Digital Power Systems product lines. In the preceding winter of 2018, Enedo had acquired power supply manufacturer Powernet International in a €4.5 million deal, through which it had gained a foothold as a provider of power supply solutions for, for example, train traffic.
Enedo’s three main product categories are LED Drivers, Power Supplies, and Power Systems. In 2020, the group’s revenue was €38.5 million. Enedo employs 354 people.
The coronavirus also significantly affected Enedo.
Q1 / 2021, 30b2f8db-49c8-430c-a396-3c1e8abb6ab7 (globenewswire.com)
- Revenue €8.8 million (€10.0 million)
- Power Systems grew by nearly 40% year-on-year
- LED Drivers and Power Supplies product categories decreased compared to last year
- Demand for entertainment and culture-related LED drivers remained low due to the effects of the coronavirus. There are already some budding signs of demand picking up for the LED Drivers product category, and some customer projects that were on hold have started to move forward.
- Delivery capability during the first quarter was relatively good despite the general component market situation
The company is undergoing a turnaround program, aiming for estimated permanent savings of €4.0 million. Some of the change projects were already started last year, and implementation continued in the first quarter of the year.
Enedo’s five largest shareholders on June 30, 2021
- Nordea 49.72 %
- Joensuun kauppa ja kone 11.63 %
- Rausanne Oy 7.17 %
- Soinitilat Oy 3.25 %
- 4Capes Oy 2.92 %
What do others think of Enedo? I made my first investments a couple of weeks ago and see this as a very possible profitable grower, as electrification seems to be progressing.
