JonDeTech Sensors - Infrared sensors ramping up - Mangold Insight Analysis

Mangold initiates coverage of the sensor technology company JonDeTech Sensors ("JonDeTech") with a Buy recommendation. The price target is SEK 0.10 per share over a 12-month period. The company has developed the JIRS30 sensor element, which is one of the world's thinnest IR sensors and only 0.17 mm high. The JIRS30 differs from traditional IR sensors in that it can be used in direct contact with objects, is flexible and does not require a protective cover, which is unique for JonDeTech. In addition, the company has sensors JIRS10 and JIRS40 in its product portfolio, which leads to several revenue streams. The products have multiple applications and can be integrated into a variety of products such as mobile phones, smart watches, smart patches, production facilities and batteries.

Delivery of sensor JIRS40 will be done in the fourth quarter which will generate the first substantial sales. Mangold estimates that sales will begin to take off in 2024 given the commercialization of both the JIRS30 and JIRS10, which through an integrated solution is launched by a partner in Taiwan. Heat flow sensors are seen as the most interesting application according to Mangold, and the market is expected to reach about BUSD 2 by 2030. The growth rate is expected to reach 7.5 percent annually (CAGR), which gives JonDeTech the opportunity to take market share.

A DCF model has been used to value JonDeTech. A scenario analysis with different applied sales levels and return requirements has also been done. The valuation range amounts to SEK 0.047 to SEK 0.187 per share.