JENA/BERLIN (dpa-AFX) - The technology group Jenoptik is making better progress with its reorganization than expected. From the point of view of the management around CEO Stefan Traeger, business should therefore be more profitable in the medium term than previously thought. Jenoptik shares rose significantly on the news from the capital market day in Berlin on Friday. On the way to becoming a pure photonics group, the core business of the Jena-based company has now been significantly strengthened, but after the sale of the military technology division last year, some parts are still up for sale.

On the stock exchange, Jenoptik shares led the MDax in the morning with a price increase of up to six percent. The annual balance sheet is therefore slightly positive again. After a strong run last year, the share was one of the losers in the mid-cap index in 2023. After an interim high of just under EUR 33 in mid-June, the share price fell steadily, but it was not until the end of October that the trend reversed and the share price started to rise again. At around 26 euros, the share is currently back at the level of mid-September.

"Jenoptik is making very good progress in its transformation into a globally leading, pure photonics group and has created strong growth platforms," said CEO Traeger according to the press release. The core business accounts for 85 percent of revenue, meaning that the Group has significantly increased its share of sales with important long-term partners and improved its position. The reorganization is largely complete.

From now until 2025, the focus of investments will primarily be on organic growth, the statement continued. This has recently averaged around ten percent, which Jenoptik says means it has already made faster progress than originally expected.

In 2025, earnings before interest, taxes, depreciation and amortization (EBITDA) are now expected to account for 21 to 22 percent of revenue. The Group had previously targeted an operating margin of around 20 percent. The sales target remains unchanged at around 1.2 billion euros. Market expectations have so far been roughly in line with the old targets.

For comparison: Jenoptik had achieved 981 million euros in 2022, with a margin of 18.8 percent. At the beginning of November, the management raised its profitability target for 2023. The target margin for this year is 19.5 percent, with sales expected to climb to up to 1.1 billion euros.

Jefferies analyst Henrik Paganetty pointed out that, unlike previously, the new plans do not include any further takeovers or acquisitions. This suggests that Jenoptik expects more organic growth.

The Thuringian company, which emerged from the Carl Zeiss Group, has been driving forward its transformation to photonics for several years. The Group is focusing on certain growth markets, which include semiconductors and electronics as well as medical technology, life sciences and smart mobility.

Last year, Jenoptik divested its military technology division Vincorion, which was sold to the private equity company Star Capital. In return, the Group strengthened itself through several acquisitions, including the addition of optical measurement systems provider Trioptics. The construction of a new factory for semiconductor equipment in Dresden is scheduled for completion in 2025.

The automation specialist Prodomax is still on the sales list and is to be sold in two years at the latest. The investment is included in the non-photonic portfolio companies segment, which also includes the industrial measurement technology provider Hommel-Etamic. Jenoptik has so far left its options open here: The further development of Hommel-Etamic could take place either within or outside the Group, it was stated at the Capital Markets Day./tav/nas/jha/