Edison has issued a report on SCHMID, a designer and manufacturer of equipment for the electronics industry, specifically for printed circuit board (PCB) and advanced packaging manufacturing. The report identifies a potential material uplift in FY26 for the company, driven by the rollout of high-volume manufacturing of new advanced packaging techniques. This demand is expected to be sustained in the medium to longer term, providing a significant opportunity for growth.

SCHMID operates in the higher end of the sector, where advances in packaging are driving demand for new processes and materials. The company has developed cutting-edge tools and patented processes to address these needs. Following a couple of years of weaker demand, the report suggests that the market dynamics are shifting favorably for SCHMID.

The report highlights several factors contributing to the positive outlook. A recently strengthened balance sheet provides a solid foundation for growth. Additionally, the growing addressable market and the potential to progressively improve profitability are seen as key drivers for upside to the current valuation.

Edison is authorised and regulated by the Financial Conduct Authority. The firm clarifies that it is not an adviser or broker-dealer and does not provide investment advice. The reports published by Edison are not solicitations to buy or sell any securities.

For more information, the full report is available on Edison's website. The firm can be contacted via email at enquiries@edisongroup.com or by phone at +44 (0)20 3077 5700.

SCHMID Group N.V. has signed a preliminary manufacturing project letter of intent and investment framework agreement with local authorities in the Banfu Industrial Zone, Zhongshan, Guangdong Province, China. The agreement outlines the establishment of a new manufacturing campus designed to consolidate the company's existing operations from two separate leased facilities into a single company-owned production site. This strategic move is intended to nearly double SCHMID's effective manufacturing capacity in China through extended operational space, improved layout efficiency, and optimized production workflows.

The new facility will support SCHMID's "In China for China" strategy, addressing rising demand for advanced wet-process equipment used in high-end HDI boards, IC substrates, and AI server boards. By localizing production, the company aims to meet customer requirements for shorter delivery times and rapid project execution. The campus is expected to provide significant production capacity growth capable of supporting annual revenue substantially above SCHMID's current China manufacturing capabilities.

Investment and Financing Details

The total investment for land acquisition, construction, and related infrastructure is expected to be approximately €11 million. The agreement includes development incentives such as land use rights for long-term use. SCHMID anticipates that the majority of the project financing will be provided through local Chinese bank financing on partially subsidized terms, secured by the project assets and associated land-use rights.

Timeline and Operational Goals

Construction is scheduled to commence following the completion of the final land transfer, permitting process, and the conclusion of a final binding agreement. SCHMID currently expects to begin operations at the new facility approximately by mid-2027. The establishment of this campus represents a significant milestone in the company's development within the Chinese market, strengthening its ability to support customers in a dynamic electronics manufacturing hub.

CEO Christian Schmid emphasized the importance of the investment, stating that it strengthens the company's ability to support customers in one of the world's most dynamic electronics manufacturing markets while providing the capacity required for future growth.