NextVision Stabilized Systems (TASE: NXSN) has undoubtedly provided record returns out of all the flood of tech stocks that held IPOs in 2021. The Ra'anana-based company's share price rose 11% yesterday to give a record market cap of NIS 4.7 billion. The stock has risen 11.5-fold (including dividends) since its flotation three and a half years ago, enabling it to be included in the prestigious Tel Aviv 125 Index.
NextVision develops and manufactures day and night cameras, mainly for unmanned aerial vehicles and drones, which allow stable images in difficult flying conditions. The company is benefiting from the growing need of armies around the world to purchase advanced security equipment, due to the wars in Israel and Russia-Ukraine. Customers include Israel's Ministry of Defense, Elbit Systems (TASE: ELST; Nasdaq: ELST), and Israel Aerospace Industries (IAI).
The reason for the current jump in the share price is the latest growth forecast that the company has provided for 2025, while publishing preliminary results for 2024. NextVision notes that its revenue in 2024 are expected to be $114.5 million, growth of 120% compared with 2023 (slightly higher than the 112% growth forecast published at the start of 2024). The company held its TASE IPO following revenue of less than $8 million in 2020. The company's structure is also considered "lean", with only about 70 employees, which ensures that revenue quickly flows into net profit.
NextVision predicts 2025 revenue of $160 million, which would reflect growth of 'only' 45%. During 2024 the company reported 21 deals worth almost $87 million, including a $17 million order last week.
The reserve general who perhaps sold shares too early
NextVision's founders and investors have already recorded huge profits. For example chairman Chen Golan holds a 6.75% stake worth NIS 320 million, CTO Boris Kipnis holds a 4.5% stake worth NIS 213 million, CEO Michael Grossman holds a 1.3% stake worth NIS 54 million, director Nachman Benchaya holds a 3.55% stake worth NIS 168 million and veteran investor Yosef Sandler has a 10.1% stake worth NIS 480 million.
An early investor in the company was General (res.) Amiram Levin, who has already sold shares worth more than NIS 10 million and has seen his stake fall to less than 5%. Had he continued to hold the shares he sold, they would have been worth NIS 235 million today.
Published by Globes, Israel business news - en.globes.co.il - on December 31, 2024
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