NextVision Stable Systems (TASE: NXSN) has undoubtedly delivered record returns from all the flood of tech stocks holding IPOs in 2021. The Raanana-based company’s share price rose 11% yesterday to give it a record market value of NIS 4.7 billion. The stock price has risen 11.5 times (including earnings) since its launch 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, especially for drones and UAVs, which enable stable images in difficult flight conditions. The company benefits from the increasing need of armies around the world to purchase advanced security equipment, due to the wars in Israel, Russia, and Ukraine. Clients include the Israeli Ministry of Defense, Elbit Systems (TSE: ELST, Nasdaq: ELST), and Israel Aerospace Industries (IAI).
The reason for the current jump in the stock price is the latest growth forecast provided by the company for the year 2025, while publishing preliminary results for 2024. NextVision indicates that its revenues in 2024 are expected to reach $114.5 million, a growth of 120% compared to 2023 (slightly higher than Growth forecast of 112% published at the beginning of 2024). The company held its IPO on TASE after revenues of less than $8 million in 2020. The company’s structure is also considered “lean,” with only about 70 employees, ensuring revenues flow quickly into the bottom line.
NextVision expects 2025 revenue to reach $160 million, reflecting growth of “only” 45%. During 2024, the company announced 21 deals worth approximately $87 million, including a $17 million order last week.
The backup general who may have sold stocks too early
NextVision’s founders and investors have already posted huge profits. For example, Chairman Chen Guolan has a 6.75% stake worth NIS 320 million, CTO Boris Kipnis has a 4.5% stake worth NIS 213 million, CEO Michael Grossman has a 1.3% stake worth NIS 54 million, and Director Nachman Benchaya has a 3.55 stake. % 168 million shekels, and veteran investor Yosef Sandler has a 10.1% stake worth 480 million shekels.
One of the company’s first investors was General (res.) Amiram Levin, who has already sold shares worth more than NIS 10 million and has seen his stake drop to less than 5%. If he had continued to keep the shares he sold, their value today would have been NIS 235 million.
Published by Globes, Israel Business News – en.globes.co.il – on December 31, 2024
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