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MPC ENERGY RESEARCH BY SPAREBANK SUMMARY:
|MPCES (Buy tp NOK100) – IoC: Great combination of downside protection with net cash at 80% of m.cap and strong upside from value accretive renewable growth|
We initiate coverage of MPC Energy Solutions (MPCES) with a Buy recommendation and a target price of NOK 100 per share. The company recently raised USD100m, in a combination of USD90m cash and USD10m worth of solar power plants, and listed on the Euronext Growth in January 2021. As such, the company currently trades at a price/book of less than 1.2x, and will invest in solar PV plants, wind power plants, hybrid and/or energy efficiency projects with an equity IRR of 12-18%. We argue that the company offers an attractive risk/reward, as it roughly focus on a lot of the same business opportunities as Scatec, renewable energy in emerging markets, while Scatec trades a P/B of 5x. We estimate that MPCES will invest the USD90m equity in a portfolio of 112MW, all with secured power sales agreements in place. If valued at an equity discount rate of 7%, the projects alone are worth NOK58/share, 40% above the current share price. In addition comes future growth, which could easily exceed our estimated value of NOK42/share. Lastly, it has been a couple of volatile days in the renewable energy space on the stock exchange. Unlike many other renewable companies, MPCES has a firm value with a net cash position of NOK34/share (83% of current share price), and could prove a bargain if it drops with market sentiment
We are long MPC ENERGY. The company is reporting tomorrow. Today it is up 15%. Could be just the bigenning.
Bullish article in Swedish paper on NEXT Biometrics. Translation below
Ola Rollén on Next Biometrics: “Good turnaround by CEO”
The Norwegian biometrics company Next Biometrics has rushed to the stock market this year after several difficult years. Wednesday’s report is given a thumbs up by the major owner Ola Rollén, Hexagon’s CEO – who praises the Swedish civil engineer who has been leading the company for some time.
Published: February 24, 2021, 10:31
On Wednesday morning, Norwegian Next Biometrics, a competitor to Fingerprint Cards, reported a fourth quarter with a shrinking loss: minus 8.8 million Norwegian kroner against minus 51.8 million in the corresponding period in 2019.https://d2c5832037994ccfda315326f1addfdc.safeframe.googlesyndication.com/safeframe/1-0-37/html/container.htmlAbout our ads
Sales during the quarter amounted to NOK 8.8 million (9.2), in line with a prior announcement from the company last week in connection with a then completed private placement of SEK 89 million, to set against a cash of SEK 68 million at the turn of the year. The gross margin also developed in line with the advance announcement: plus 16 percent against minus 2 percent a year ago.
The capital raising was made at a price of SEK 6, just over a week after the share price had received a boost of more than 100 percent from a press release about an important order of PC sensors: the share rose from 3.28 to 7.87 Norwegian kroner on 8- February 10th.
Ola Rollén, Hexagon’s CEO, is with his private investment company Greenbridge the largest owner in Next Biometrics since a notable investment in the autumn of 2015, which made Greenbridge the owner of at most almost 19 percent of the company.
Since then, the share has fallen, and the share price has plummeted to a fraction of the levels at which the investment took place. According to the owner service Holdings, as of February 22, Greenbridge owned just over 8 percent of Next. Last week’s issue diluted the owner company from just under 10 percent to today’s level.
The refined large company CEO expresses his approval with Wednesday’s report:
“Can only state that Next is going in the right direction”, he writes in an email to Di, and continues:https://d2c5832037994ccfda315326f1addfdc.safeframe.googlesyndication.com/safeframe/1-0-37/html/container.htmlAbout our ads
“The costs are now at a good level, the cash register is full and they take orders and design wins in the so-called FAP20 area – a good turnaround by Peter.”
The Swede Peter Heuman, a Chalmers-educated civil engineer, became CEO of Next at the age of 43 in September 2019, after a previous position as CEO of First North-listed Done Management & Systems (later Nordkom) and also has a background in Ericsson.
The Fap20 sensors mentioned by Ola Rollén appear in a press release from Next on February 4, when the share price rose 16 percent. According to Wednesday’s announcement, Next Biometric has received orders for more than NOK 13 million for the first quarter of 2021, with an improved gross margin.
The Next share was up 1.2 percent to the level of SEK 6.80 at 10 o’clock on Wednesday. So far this year, however, it is up as much as 160 percent.