EnSilica PLC (AIM: ENSI) has demonstrated strategic resilience and growth potential in its mid-year update for the first half of 2025, according to Stonegate Capital Partners. The company, specializing in mixed-signal ASICs for automotive, industrial, healthcare, and satellite connectivity applications, continues to strengthen its market position. With the global ASIC market projected to reach $25.0B by 2030, EnSilica's intellectual property and strategic initiatives place it in a competitive stance.
Despite a 3% decrease in revenues to £9.3M compared to the previous year, attributed to slower progression of new contract wins, EnSilica has shown significant growth in its supply of products revenue, which surged by 170.3% year over year to £2.9M. This growth underscores the company's shift towards more predictable revenue streams, with five ASICs in production and twelve in the design phase. Additionally, a royalty agreement worth ~US$28.0M with an existing satellite service provider highlights EnSilica's value to its customers.
The company's outlook remains positive, with expected revenues for FY25 and FY26 ranging between £19.0M to £20.0M and £33.0M to £35.0M, respectively. EnSilica's strong order backlog, accounting for 80% of FY26's expected revenues, and recent achievements, including a Memorandum of Understanding with a major European satellite operator and the release of two chips for the satellite broadband market, signal robust momentum. The satellite broadband market, expected to grow at a CAGR of 21.4% until 2033, represents a strategic priority for EnSilica, further bolstered by support from EU and UK space agencies.
Stonegate Capital Partners' valuation of EnSilica, based on P/E, DCF, and EV/EBITDA analyses, suggests a promising investment opportunity, with valuation ranges averaging £0.77 to £0.89. This mid-year update not only reflects EnSilica's resilience in the face of temporary challenges but also its potential for sustained growth and profitability in the evolving ASIC market.
