Groupe Gorge (GGRGY) Expecting Big, Fast Revenue Growth From 3D Printing
Posted on January 17, 2014 by Gary Anderson
Groupe GorgeFrench Engineering firm Groupe Gorge, who launched their new 3D printing division at Euromold 2013 last month, announced projections for their 3D printing revenues today. The company’s shares will also begin trading as a level 1 sponsored ADR through the Bank of New York Mellon under ticker GGRGY as of today.
Groupe Gorge
Revenue Growth
In two years, Groupe Gorge is targeting to “attain and then exceed” €5 million in monthly revenues from 3D printing, or 81.7M $US annually. This is approximately equal to the trailing twelve months of all revenue from both voxeljet (VJET) and Arcam AB (AMAVF)…combined. Time will tell if this aggressive target is achieved, but I believe it’s well within the realm of possibility due to the proprietary technology of their Prodways lineup of industrial 3D printers. According to CEO Raphael Gorge in a previous interview, the Prodways machines have the following competitive advantages:
“Two major competitive advantages are brought to industrial users: unparalleled perfection of the parts produced and distinctly improved profitability. Prodways technology provides a world record in resolution and precision even on large parts, and permits the use and development of premium material.”
Prodways machines provide:
Most detailed parts on the market at high throughput : hundreds of tiny parts in just a few hours at a resolution of less than 35-µm
Unequalled resolution, more than half a billion pixels per layer
High precision in the 3 dimensions (horizontal AND vertical), essential in many applications such as dental
Very large sized parts while retaining the same precision required for intricate and exacting parts such as those used in biomedical
Use and development of premium innovative composite and hybrid materials with impressive mechanical, physical, esthetic properties, as well as biocompatible materials for a wide variety of medical applications
Significantly improved profitability due to its incredible speed and considerable reductions in production costs
Up to 10 times faster than market standards
Technology allowing for unequalled production volumes
Superior surface quality requiring minimum finishing
Minimum operating costs due to lack of expensive wear and tear on parts
Replacement of LED light source that’s cheaper than laser
Sponsored ADR (American Depository Receipt) Ticker GGRGY
Due to U.S. investor demand for shares, the stock will now trade as a Bank of New York Mellon sponsored level 1 ADR under ticker GGRGY. The company will also release financials in English going forward. I believe analyst coverage of Groupe Gorge will soon follow.
subsidiary win
Big Win From Subsidiary Announced Yesterday
In other positive news, just yesterday Groupe Gorge announced a major international order for land-based defence driving simulators. and the order “considered as a significant amount, will be booked over several financial years”. This additional revenue will from Groupe Gorge flight and driving simulator subsidiary, ECA Faros.
High Revenue Growth with Comparative Value
A quick look at market caps and trailing twelve month PE ratios of closest rivals in size indicates comparative value.
