Ariel Investments LLC - Ariel Global Fund on Xiamen Faratronic Co., Ltd.
Thesis
Faratronic is a global leader in film capacitors with strong positions in electric vehicles and renewable energy. Ariel expects electrification, new energy vehicles and data center demand to support future growth. An improving cost structure could support margin recovery in the EV business and lift overall profitability.
“Faratronic is a high-quality way to gain exposure to the global energy transition with accelerating earnings potential.”
Key risks
- Cost and margin pressure in the electric vehicle business
- Electrification demand may grow more slowly than expected