Guinness European Equity Income Fund on Mycronic AB

The fund initiated a new position in Mycronic after analysing the business and meeting management. It sees an attractive combination of quality and underappreciated growth, supported by high sustainable returns and recurring revenue representing 30-35% of sales. The highly profitable Pattern Generators business provides a dominant, cash-generative core while specialised electronics niches increasingly drive growth. The decentralised operating model and diversification are expected to support long-term growth, with the company targeting revenue growth around its long-run through-cycle average of 15% CAGR.