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Freemelt: Well-positioned for the next industrial revolution - ABG

Early-stage Swedish metal 3D printer manufacturer

Estimated sales CAGR of ~43% 2022e-2031e

Fair value range of SEK 9-21

3D printing: a more versatile way to manufacture
3D printing, also called additive manufacturing, is the process of manufacturing objects by successively adding material to the product, thus effectively “printing” it. This stands in contrast with traditional subtractive methods that often start with a solid block and then remove unwanted material. 3D printing thus enables the production of more complex and hollow structures, while also avoiding the need for product-specific manufacturing equipment: a 3D printer can produce custom products, only requiring a computer model to begin printing.Although metal 3D printing has existed for some years the technology is still at the early stages, and as with most new industrial processes this means that 3D printing is still quite expensive and time consuming. Nevertheless, the method is developing rapidly, and has already started to gain significant market share in areas such as medical implants, aerospace and electromobility.

Freemelt: superior technological expertise
Freemelt’s 3D printing technology of choice, E-PBF, is one of the more advanced technologies available, with a particular competitive edge in production using certain metals. E-PBF enables high-quality, high-precision manufacturing of nearly any geometry, using a wide range of materials. Multiple members of Freemelt’s team have significant previous experience in the field, with two of Freemelt’s founders having been responsible for over half the patents filed by their previous employer, the Swedish competitor Arcam, which is currently the dominant player within E-PBF 3D printing.

Operational success appears more likely than not
Provided that Freemelt completes development of its industrial scale printer and then successfully markets it, we believe that the operational future of the company looks bright. Our DCF and peer valuation models lead us to a ...
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