Translation: Original published in Finnish on 07/14/2025 at 07:44 am EEST

Canatu announced on Friday that it has received Site Acceptance Test (SAT) approval for its first CNT100 SEMI reactor and post-processing equipment, which were delivered to a semiconductor customer in September 2024. The equipment successfully passed the extensive tests conducted on-site at the customer’s premises and met the stringent technical requirements and specifications defined in the acceptance criteria. According to the company, this confirms the CNT100 SEMI reactor’s readiness for mass production of CNT pellicle membranes.

Canatu's stock, which has been under pressure in recent months, received a significant boost from the news (+16.4%), suggesting that investors have not fully believed in the completion of the approval tests this year. In our view, the news reduces the technological risks associated with Canatu's reactor business, but there are still a few steps to go through before mass production starts at the customer's end.

The next step for the customer is to secure final approval for the finished carbon nanotube pellicle membrane and the entire production line before the pilot and risk mass production starts. This phase would enable the mass production of Canatu's carbon nanotube pellicle membranes, which would generate one-off revenues for the company from technology licensing and recurring revenues as royalties from the sale of carbon nanotube pellicle membranes and reactor consumables. These recurring revenues from the reactor business also form the core of the company's investment case, and we expect strong revenue growth to be weighted towards 2027-2028, when several reactors have been delivered to customers.

In its outlook provided in connection with the financial statements (our update can be found here), Canatu estimates that the approval tests for the first two delivered reactors will be completed during 2025. In this respect, things seem to be progressing according to plan, but as per our previous estimates, the first reactors are unlikely to reach mass production on the customer's end this year. Canatu also expects that any further reactor orders from existing customers will likely depend on the successful completion of the final approval tests of the first two reactors and related equipment. Based on Friday's news, we believe it is slightly more probable that Canatu will announce one or two new reactor orders before the end of the year.