MIPS AB - Multi-directional Impact Protection System

[jaska7]

Let’s start another thread shortly after the worst of the froth has cleared! The company is absolutely great, and it’s a wonder a thread hasn’t been started sooner

Mips has sparked some discussion in the cycling thread as well as individual posts here and there, so it would be nice if we could get the discussions concerning Mips under one thread. Of course, lighter chats belong in the “coffee room” and wondering about share prices in the related thread!

Mips’ history dates back to the Royal Institute of Technology in Stockholm (Kungliga Tekniska högskolan), where Hans von Holst, a well-known neurosurgeon and professor emeritus, and Peter Halldin developed technology for more effective brain injury prevention. Mips was founded in 2001. The concept became a product around 2007, and their own helmet model saw the light of day. The strategy was then shifted to its current direction, where they sell their technology to other helmet manufacturers. Mips is surely familiar to many helmet users, but the company behind the sticker/brand might be a bit obscured.

So what is Mips really? I think this video explains Mips well.

Then to the figures.

Many will surely have questions about patents; here are a few picks from the 2021 annual report:

I think the annual report is high quality and an excellent overview in terms of content. This should, of course, be the case for every company :). Link to the annual report here: https://mipscorp.com/files/uploads/2022/03/MIPS-Annual-Report-2021-rev.pdf risks are well listed in the annual report starting from page 40!

Figures from a bit longer timeframe from Börsdata:

Let’s add some fresh/current matters at the end:
There are many helmet factories in China, and the company issued a release regarding these new lockdowns as follows: Update on the potential impact of pandemic related lockdowns in China

“Per today, the financial impact due to the lockdowns in China has been limited, however the situation is unpredictable and if the lockdowns continue during a longer period of time we cannot exclude the risk for material disruptions in MIPS’ supply chain going forward with a potential negative financial impact.”

Q1 2022 was just released last week, link to the webcast here: MIPS Q1 Report 2022 Supply chain problems were also highlighted here (screenshot from the presentation):

[Hodl_the_door]

I’m more familiar with the company as a consumer. I’ll have to look into it as an investment too, thanks for the good start!

Regarding the technology itself: Virginia Tech has been testing cycling helmets for a long time, and all the helmets at the top of the list are equipped with MIPS, except for one POC helmet, for which POC has developed similar features. However, POC’s range still includes helmets equipped with MIPS.

https://www.helmet.beam.vt.edu/bicycle-helmet-ratings.html

[jaska7]

Mips-CMD-2022-komprimerad.pdf

CMD was today. Slides above

Here is the link to the presentation: MIPS CMD 2022

[Index-JP]

I have this in my portfolio through a fund. The company feels a bit distant, as it doesn’t seem to have its own product, but rather its product is embedded within another brand. However, I’ve learned to demand MIPS (Multi-directional Impact Protection System) in products when buying helmets, because only the best is good enough for my noggin

[Hasbi]

In this regard, it’s also worth remembering that the two most important patents expire in 2030-2031. This is already very close when trying to price and value the company and when talking about long-term goals.

One of these patents is precisely this shell/membrane or similar that goes into helmets and gives the helmet its “MIPS” label. US20130042397A1 - Helmet - Google Patents

The company has had patent disputes many times and won them, but when that patent expires, competitors and manufacturers will almost certainly have developed their own solutions, as has been written about POC in the message above, for example.

[jaska7]

H1 2022 came out this morning

Interim report January-June 2022

[jaska7]

https://storage.mfn.se/75fc4006-57ac-4ff0-a5d0-3d6d0826414/mips-predicts-a-short-term-weaker-development-of-the-bike-market-than-previously-communicated.pdf

“Mips AB communicated in the half-year report 2022 that the inventory levels in the bike retail sector at the time continued to be unbalanced and that the situation could impact the short-term demand for Mips’ products. Mips assessment is that the continuing challenging market situation in the bike sector where retailers in most markets have substantia.fitability for the rest of the yea”

That indeed came out yesterday evening. Yesterday’s drop was probably related to Thule’s negative announcement: https://storage.mfn.se/4567b0e5-c4a8-490b-9ef8-2e261b52989a/trading-update-on-the-impact-of-the-current-market-situation-within-the-bike-retail-sector.pdf

[Seinakadunsusi]

Mips AB: Early publication of Mips’ report for the third quarter ...

Mips will publish its Q3 report tomorrow, October 16, at 11 PM, instead of October 26. This is due to the uncertain situation in the bicycle sector, as mentioned in the previous press release. I, for one, will put on a helmet before opening the report, just in case.

[jaska7]

Rarely does anything positive come from these. Well, let’s see how awful the numbers are, and they’re unlikely to be good if compared to Thule’s and other industry players’ numbers from the latest reports.

[jaska7]

Mips AB: Mips interim report January–September 2022

“During the third quarter, net sales decreased by 39 percent. Adjusted for exchange rate effects, the decrease was 50 percent.”

That’s terrible!

https://twitter.com/Prof_Kalkyl/status/1581738325568008192

Let’s dig up something positive from an otherwise very negative result.
" Helmet category Motorcycle – development continues to be good
The Motorcycle helmet category continued to develop well during the quarter with a growth of 16 percent. During the first nine months of the year, the category has grown by 38 percent, and we believe that the development will continue to be positive also going forward. This quarter’s growth is mainly due to good progress with our existing customers, but it also comes from more new customers launching helmet models with Mips’ technology."

Helmet category Safety – great interest from the industry
During the quarter, one of our key partners, uvex, launched two new helmets globally and we believe in a good sales trend going forward. During September, we participated in the NSC fair in San Diego where we presented our first exhibition stand in the Safety helmet category. At this fair, we once again experienced a confirmed industry interest in Mips’ technology, and we believe that the US can become a key market for the Safety category (as it is for the Sport category). Our focus remains – to drive sell-through together with our existing customers and naturally also establish partnerships with new customers.

Edit: adding this too

[jaska7]

Behind the Scenes: Designing & Testing Bike Helmets with MET

Recommended reading!

[jaska7]

Q4 2022 was released this morning

mips-ab-year-end-report-january-december-2022.pdf

Link to webcast: MIPS Q4 Report 2022

There is a lot of potential in Safety. Delta Plus was brought on as a partner at the beginning of February.

" Partnership with second global brand Delta Plus
announced in beginning of February 2023 "

Home

[jaska7]

mips-ab-interim-report-january-march-2023.pdf

[viljo]

Wow, I guess nothing has been sold off or anything like that?

[jaska7]

Q2 2023, problems continue, as expected

mips-ab-interim-report-january-june-2023.pdf

[Hiukopistiäinen]

Mips expands into the field of smart sensors for helmets.

Mips AB (publ) (“Mips”) has entered into an agreement to acquire 25 per cent of the sensor technology company Quintessential Design, Inc. (“Quin”) for a consideration of USD 7.3 million.

Quin is an ingredient brand for event detection technology, providing specialized sensor fusion and software to helmet brands since 2018. Quin’s proprietary technology turns passive gear into smart companions capable of detecting safety events, triggering emergency response protocols, and also connecting the closest emergency services to those in distress.

Mips invests in sensor technology company Quin

[jaska7]

An Introduction to Quin Design Intelligent Helmets

[jaska7]

mips-ab-interim-report-january-september-2023.pdf

[jaska7]

In line with the communication in Mips AB’s (publ) press release on 15 September 2023, Mips’ CEO, Max Strandwitz, has sold a total of 45,000 shares in the afternoon of 6 December 2023.

“I have chosen to sell a part of my shareholding in Mips. The sale was carried out for private financial reasons to cover the tax exposure that arose in connection with the previous warrant plan in Mips and to enable participation in a new warrant plan. I still have the majority of my ownership in the company intact and have a very strong belief in Mips’ long-term potential”, says Max Strandwitz, Mips’ CEO.

the-ceo-in-mips-sells-shares-by-reason-of-mips-warrant-plans.pdf

[jaska7]

https://mipscorp.com/files/uploads/2024/02/mips-ab-year-end-report-january-december-2023.pdf

According to the CEO’s comments, the worst of the cycle is already behind us; here are a few highlights.