Research Tree | Equity Research for Investors

25 Jan 22

SHORE CAPITAL - Touchstone Exploration+ (TXP) House Stock, 87.5p

Following the announcement of test results for all three zones at Royston, where we now see a compelling oil development opportunity, we have revisited our FY21F and FY22F estimates for Touchstone and introduce numbers for FY23F. Our forecasts for the financial year just ended are not materially changed (certainly in revenue and net profit terms) – with Touchstone’s results for the nine months to September having previously indicated that it was tracking reasonably well against our estimates for

Companies: Touchstone Exploration Inc

21 Jan 22

SHORE CAPITAL - Sureserve Group+ (SUR) - House Stock at 105p

We epoect a confident outlook statement and an outline of Sureserve's evolving growth strategy when the compliance and energy services group announces its full year results on Tuesday, 25 January. It will be the first results presentation under Chairman Nick Winks, who joined in May, and as CEO for former CFO Peter Smith. We expect the Board to elaborate on their previous indications that they are moving from the now complete restructuring phase to a growth trajectory, including acquisitions. Gi

Companies: Sureserve Group Plc

18 Jan 22

LIBERUM: Gattaca* - A delayed recovery in contract

Companies: Gattaca plc

26 Jan 22

Somero Enterprises - Post year-end trading update – further 7% EPS upgrade

Further to its 7 December update, the group has posted a positive trading report, highlighting a better-than-expected profit and cash performance, driven by strong H2 trading in December, with North America, Europe and Australia all performing robustly. We raise our FY21 EPS forecast by 6.9%, and lift our dividend forecast by 9.2%. The outlook remains positive with a slightly greater investment in NPD supporting longer-term growth resulting in FY22 EBITDA similar to that of FY21. We raise our Ta

Companies: Somero Enterprises, Inc.

25 Jan 22

SHORE CAPITAL - Sureserve Group+ (SUR) House Stock, 86.5p

Compliance and energy services group Sureserve today posted a 45% increase to £13.6m in adjusted PBT for FY21 to September, 5.4% ahead of our estimates, on better than forecast revenue in the higher margin Compliance division. Cash was also slightly ahead of the company’s guidance at £16.5m. We are increasing our FY22F and FY23F PBT estimates by over 3% to £16.4m and £18.6m respectively (possibly conservatively) and are making bigger percentage increases to our net cash forecasts. The Group has

Companies: Sureserve Group Plc

13 Jan 22

LIBERUM: Sylvania Platinum* - Rhodium starts 2022 with a bang

Companies: Sylvania Platinum Ltd.

18 Jan 22

Further upgrades for FY'21

Kape has provided a post-close trading update, highlighting revenues significantly ahead of consensus at $230m (cons: $201m), up +89% y/y. Part of this beat is attributable to ExpressVPN (not included in our forecasts) which contributed $18m from 16th December. Underlying revenues were still 5% ahead of consensus at $212.5m driven by the continuation of high renewal rates (82%) and strong organic adds which contributed to a 0.5m organic net increase in subscribers (+18% y/y). Management have uti

Companies: Kape Technologies Plc

27 Jan 22

ITM - Cash Position an Advantage

ITM’s interim results broadly reflect the guidance given in the December trading update although there has been progress in the underlying business since then, notably with a 24MW contract win and German Federal support for activities in the key European market. Importantly the company’s cash position following the November fund raise means that it is now funded to take production capacity to 5GW and expects to break ground on the second UK factory in H2 calendar 22. In our view the ability to d

Companies: ITM Power PLC

27 Jan 22

Strong FY21 update prompts double digit upgrade

Today’s positive year end update prompts a 10% upgrade to our FY21 EBITDA forecast. RBG Legal Services is performing well under two highly regarded brands (Rosenblatt and Memery Crystal), whilst LionFish and Convex Capital have attractive prospects for FY22. The shares are trading on a current year P/E rating of just 10x, a material discount to peers. We consider this wholly anomalous, given RBG’s trading momentum, clear growth ambitions and attractive dividend yield (6.0% for FY22). Our 160p Ta

Companies: RBG Holdings Plc

18 Jan 22

SHORE CAPITAL - KAPE TECHNOLOGIES+ (KAPE) - House stock, 408p

In a trading update, Kape has confirmed strong growth for the year ended 31 December 2021 (FY21F). Including the contribution of ExpressVPN, revenue is expected to be substantially ahead of previous guidance at c. $230.5m, up 89%. Excluding this contribution, the business performed 5% ahead of the upper range of previous guidance. Adjusted EBITDA (including ExpressVPN) advanced by 97% YoY to $77.0m, in line with guidance. The guidance issued at the time of the ExpressVPN acquisition is confirmed

Companies: Kape Technologies Plc

24 Jan 22

LIBERUM: Shanta Gold* - Results inline, more 2022 guidance

Companies: Shanta Gold Limited

25 Jan 22

Hybridan Small Cap Feast 25/01/2022

Joiners: No Joiners Today. Leavers: Rutherford Health has left the AQSE and Prime People has left AIM. What’s cooking in the IPO kitchen? ACP Energy plc, a company formed for the purpose of undertaking an acquisition or acquisitions of a majority interest in a company, business or asset, seeking to join the Main Market (Standard) The Company intends to focus on opportunities in the natural resources sector, raising gross proceeds of £830k. Due 28 Jan. Artemis Resources ltd, an ASX listed mining

Companies: STAF CASP EKF SAR LTG ERGO EDR BARK

10 Jan 22

Major discovery upside... at a significantly discounted price

Companies: Canadian Overseas Petroleum Limited

17 Jan 22

SHORE CAPITAL - H&T Group+ (HAT) House Stock, 293p

H&T Group (‘H&T’), the UK’s leading pawnbroking business, has issued a positive trading update covering the year to 31 December 2021. The pledge book has increased by much more than expected during H2 as demand for pawnbroking loans increased sharply through November and December. Retail sales are also back above pre-pandemic levels in H2 and ahead of plan, with performance elsewhere in-line. Profitability is said to be within market expectations and would likely have been ahead had it not been

Companies: H&T Group plc

20 Jan 22

LIBERUM: Luceco* - Undervalued quality growth

Companies: Luceco PLC

28 Jan 22

Making solid progress

Amaero International Ltd (ASX:3DA) is a global specialist in metal additive manufacturing for the defence, aerospace and tooling sectors. The company has reported Q2 FY22 cash receipts and revenues of $0.134m, a 113% increase on the cash receipts generated in the previous corresponding period (pcp), and up 21% quarter-on-quarter. Monthly cash burn increased to $0.64m from $0.54m in the same quarter a year ago but was down on the $0.85m cash burn reported in Q1 FY22. The company invested in addit

Companies: Amaero International Ltd

28 Jan 22

Stealth Global Holdings RaaS 2022 Outlook Interview

27 Jan 22

Waiting for the vaccine

Despite some recovery in pharma and consumer... We have seen a 2021 with recovery in those divisions most impacted by the virus. Pharma speciality (mainly derma) and consumer healthcare (vitamins and sleep) divisions are at pre-Covid levels and we expect the positive trends to continue in the coming quarters. ... the antibiotic business is still depressed Pharma Technologies still suffers from lower demand for antibiotics, which has dropped more than -20% globally, although the impact for RJ

Companies: Laboratorio Reig Jofre (RJF:BME)Laboratorio Reig Jofre SA (RJF:MCE)

27 Jan 22

Reducing its dependency on air traffic

Prime will be the backbone for the company With 2.2m Prime subscribers in December 2021 (1m more than last year), the company is transforming its business model from transaction-based to subscription-based, driven mainly by the virtuous cycle that Prime generates. This is done by increasing the number of subscribers via attractive pricing, increasing repeat business, reducing variable and customer acquisition costs, and reinvesting the profit in lowering prices to enhance the competitiveness of

Companies: eDreams ODIGEO (EDR:MCE)eDreams Odigeo (EDR:BME)

27 Jan 22

Still suffering from the volatile environment

Strong turnaround during Q3 After a difficult Q2, where the company suffered not only from the strong increase in merchant prices but also the lack of hedging given the strong volume rebound, the company saw a big turnaround during Q3 thanks to renegotiating contracts with SMEs and increasing hedging. Long-term margin expansion depends on generation development The energy crisis has provoked a long delay in Audax''s vertical integration plan. The company suffered from the cancelation of some

Companies: Audax Renovables SA

27 Jan 22

The good momentum seems intact

The slight sales and EBIT beat is praised. The absence of FY21 guidance slightly darkens the picture but, overall, the figures send a good signal for the industry.

Companies: Diageo plc

27 Jan 22

ESG mess blows a hole in the earnings outlook

Orpea’s challenge to its business model leads us to cut our forecasts in addition to valuation parameters (see 26-01-2022). It is clearly a double-whammy. The new target price is certainly not encompassing the distinct possibility that the crisis is a protracted one for the whole senior care industry leading to a structural drop in margins nor does it account for a change in governance.

Companies: Orpea (ORP:EPA)Orpea SA (ORP:PAR)

27 Jan 22

Hybridan Research: ADM Energy PLC: 27/01/22: PetroNor given the green light to increase its stake at Aje

ADM Energy PLC has provided an update in its interest in the Aje field in OML 113, which covers an area of 835km2 offshore Nigeria. We have published research on this which is attached and a snapshot of the research is below. The natural resources investing company has noted today’s announcements today from Panoro Energy ASA (OSE Ticker: PEN), and PetroNor E&P Limited (OSE Ticker: PNOR), that all government approvals have now been received for Panoro to sell 100% of its ownership in OML 113 to

Companies: ADM Energy plc

27 Jan 22

Looks in good shape

SGS delivered full-year results that were narrowly above consensus but better than our estimates, particularly on profitability. The group showed that it is able to generate better margins under its new structure and could improve them going forward. M&A is expected to be an important driver in adding additional capabilities. FCF generation, however, was weaker than expected. Regarding FY22, the group expects decent organic growth with improved margins and better cash conversion. The proposed di

Companies: SGS SA

27 Jan 22

Wilmington PLC - H1 Trading Update

It was clear at the final results that Wilmington was seeing positive organic tailwinds behind both Information & Data and Education & Training. However, caution around further Covid roadblocks held us back from upgrading estimates. Today’s trading update confirmed these roadblocks have not transpired. The combination of healthy H1 organic growth (approaching 10% on a pre-FX basis) and underlying margin gains are likely to drive a very strong H1 YoY performance.

Companies: Wilmington plc

27 Jan 22

Los Andes Copper: FY21 financials in-line with expectations as drilling continues ahead of Vizcachitas PFS

Los Andes Copper (“LA”) has provided an update on its current activities at its flagship Vizcachitas copper-molybdenum-silver porphyry in Chile, alongside audited financial statements for the year to Sep’21. LA continues to anticipate its ongoing drilling programme will bring significant volumes of near surface material that was previously considered waste into the mine plan ahead of the pre-feasibility study, which is now scheduled for publication in Q2’22. With R. Michael Jones newly appointed

Companies: Los Andes Copper Ltd.

27 Jan 22

Good start to FY 22

Coloplast reported good Q1 22 numbers, beating estimates. Organic growth came in at 6% with an adjusted EBIT margin of 32%. The firm announced a fresh DKK500m share buy-back programme, to be initiated in Q2 22. For FY 22, Coloplast expects 7% growth at CER with an adjusted EBIT margin of ~31%. We will raise our estimates to factor in the better than expected Q1 showing as well as the early closure of the Atos medical acquisition (January end vs expectations of March 2022).

Companies: Coloplast A/S Class B (COLO.B:CSE)Coloplast (COLO-B:CPH)

27 Jan 22

Impressive results, blotted by pulp investment ‘cost escalation + delay’

2021 ended on a strong note for UPM-Kymmene, with profitability exceeding pre-pandemic highs. This performance was led by all segments (particularly pulp and energy), except for legacy and speciality papers, and helped overshadow cost challenges. Moreover, despite an aggressive capex, the dividend and, hence, industry-leading yield was maintained. Even though management is confident of the 2022 market dynamics, cost escalation and delay at mega-pulp investment in LatAm has unnerved investors. H

Companies: UPM-Kymmene Oyj

27 Jan 22

Strongly improved FY2021 net profit still at low level, weak Q4 21

• Pre-tax profit declined by 53% to €82m for Q4 21 compared to Q4 20 • Profit attributable to shareholders increased from €113m for FY2020 to €1.94bn for FY2021 • Share repurchase programme of €300m announced to be completed in H1 22 • Dividend per share proposal of €0.20 for FY2021 compared to €0.00 for FY2020

Companies: Deutsche Bank AG

27 Jan 22

Atlantis Japan Growth Fund - Outperformance and a high income, at a discount

Atlantis Japan Growth Fund (AJG) invests in a diversified portfolio of Japanese equities, with a focus on the country’s innovative, smaller-cap companies. The fund has achieved its long-term capital growth objective, delivering an average annual NAV return of 13.6% over the past 10 years, considerably outperforming its benchmark, the TOPIX, over this period. In addition, the fund pays a high and regular dividend, offering a yield of 5.3%. Yet it is trading at a much wider discount than its peers

Companies: Atlantis Japan Growth Fund Ltd GBP