NCAB GROUP AB (NCABF)

How it makes money

Revenue is booked when a customer's ordered PCBs are delivered, priced to cover the factory cost plus NCAB's margin for sourcing, design support and quality assurance. Because NCAB owns no factories, its cost base moves with what partner manufacturers charge and with tariffs on goods made in China, which it has partly offset by shifting some production to Taiwan, South Korea, the U.S. and Southeast Asia.

Revenue by segment

Key risks

• Concentration of factories in China — The company states it faces geopolitical risk because a large share of the factories it sources from are located in China, and that tariffs and trade barriers are a potential risk it has only partly offset by shifting some sourcing to other countries.
• Dependence on partner manufacturers — Because NCAB owns no factories, the company states it is exposed to the production capacity, capacity constraints and order books of the manufacturers it sources from, as well as raw material availability and prices.
• Currency exposure — The company states it is exposed to currency risk, mainly between the USD, EUR and SEK, through translation of sales and purchases and of reported assets, liabilities and investments.
• Demand and customer relationship risk — The company cites commercial risk arising from changes in economic activity, demand and customer preferences, and from the state of its relationships with customers.
• Dependence on skilled staff — The company states it depends on the continued trust of its employees and on its ability to recruit skilled staff, since its role is largely one of technical sourcing and design support rather than owning production assets.