Research Tree | Equity Research for Investors

20 Sep 21

Open Orphan* - Industry Momentum Accelerating Pipeline Conversion

Open Orphan has released its H1 2021 results. The numbers represent a milestone for the Group, delivering both positive EBITDA and bottom line profits in its half year for the first time. While H2 looks slightly uneven, this remains a rapidly growing business in a market increasingly well understood by investors and with significant opportunity for high returns in 2022 and beyond, there remains lots to go for. Reiterate Buy.

Companies: Open Orphan Plc

13 Sep 21

AFC Energy (AFC LN) - A solid future

AFC Energy’s statements and recent integration work with ABB highlight growing interest from customers which bodes well for orders in the months ahead. The forthcoming S-series of products will expand the Group’s portfolio and should deliver much high power densities and improved economics. The deployment of fuel cell technology is increasingly recognised by Governments and industry as a key tool in reducing global greenhouse gas emissions, which we expect will drive momentum for deployment in a

Companies: AFC Energy plc

13 Sep 21

Somero Enterprises - Structuring the BUY case

Structuring the BUY case

Companies: Somero Enterprises, Inc.

14 Sep 21

Proposed acquisition of ExpressVPN

Kape has announced the sensational acquisition of ExpressVPN, a well-respected rival, for a total consideration of $936m, payable in cash and shares, subject to conditions. The dramatic move doubles Kape’s subscriber base (to c. 6m), delivers significant earnings accretion and marks another tour de force moment for the Group and its shareholders (following on from PIA in 2019 and Webselenese in 2021). Completion is expected to occur in Q4 2021. ExpressVPN represents a bullseye for Kape’s acquisi

Companies: Kape Technologies Plc

15 Sep 21

Interim results shine on strong metal prices

Higher metal prices saw CAML achieve a 52% and 131% increase in EBITDA and FCF respectively in the first half of 2021, facilitating an attractive 8p interim dividend declaration (up 2p on H1 2020). The H1 results are tracking our full-year estimates, which if achieved would put CAML on an undemanding EV/EBITDA multiple of just 4x and see the shares yield over 8% at current market price. Given average copper, zinc and lead prices across H2 to date are around 10% higher than our pricing assumption

Companies: Central Asia Metals Plc

16 Sep 21

AFC Energy (AFC) - RNS Reach: Urban-Air Port Partnership

AFC Energy announced that it has entered a hydrogen fuel cell supply and collaboration agreement with partner, Urban-Air Port Limited (“Urban-Air”), a leading UK developer of ground infrastructure for the growing demand in autonomous airborne drones and electric take-off and landing passenger vehicles.

Companies: AFC Energy plc

17 Sep 21

LIBERUM: Ceres Power - Still offers good value

Companies: Ceres Power Holdings plc

14 Sep 21

Strong interims, further upgrades

EKF has delivered another strong set of results, with the step change in the scale of the business firmly consolidated. H1 revenues increased 46.5% driven by an ongoing recovery in the core business and strong demand from a number of public and private sector customers for sample collection devices. The outlook remains positive and progress is being made against the new strategy set out earlier in the year. We upgrade our FY21 revenue forecasts by 7% and EBITDA by 13% noting this still implies a

Companies: EKF Diagnostics Holdings plc

15 Sep 21

Interims show strong progress across all divisions

RBG’s interims offer no surprises, with performance strong across all divisions and progress on track against our FY21e forecasts (Revs: £45.5m, Adj. EBITDA: £11.8m). The Group’s diversified revenue model has proved resilient against a continued backdrop of uncertainty – driving revenues +53% YoY against a somewhat weak comparative, split +35% organic, +18% from Memery Crystal (despite only one month of contribution). Demand for services across all three businesses remains strong, and management

Companies: RBG Holdings Plc

13 Sep 21

Xpediator (XPD LN) - Resilience in turbulent supply chain times

XPD has reported strong H1 earnings with revenue up c.27% and adjusted PBT up c.74%; results were in line with our estimates. Revenue growth was strong across all three divisions - Freight Forwarding, Warehousing & Logistics and Transport Solutions. XPD benefited from continuing strong shipment and pallet flows in the CEE region, extra UK customs work related to Brexit, a partial turnaround in UK warehousing, and more DKV-linked fuel cards activity. Profit increased in Freight Forwarding and Tra

Companies: Xpediator Plc

15 Sep 21

Jubilee Metals (JLP) - Increased ownership in Zambian copper-cobalt projects and £30m placing

Today's raise is a testament to support for Jubilee's copper strategy in Zambia and once again showcases Jubilee's keen eye for value enhancing deals. The increase in ownership in the Tailings projects to produce the raw material for the Sable and Leopard refineries will allow Jubilee to benefit more from the profits generated and also to make choices on development speed and product output to closely match the requirements of the Integrated refineries. Today consolidates Jubilee's position in

Companies: Jubilee Metals Group PLC

16 Sep 21

Cenkos: Duke Royalty Ltd - Record results – more to come by FY23E

Today's results include few surprises in terms of cash outcomes, which are in-line with our FY21E forecasts. These record results come despite the year being challenged by Covid-19, evidencing the resilience of Duke's operating model and royalty partners. Post-period, 4 new investments have been concluded, which should help drive cash results higher over FY22E, despite a further 2 exits from the portfolio. As the company approaches near full deployment by FY23E, we expect to see FCF p/s and DPS

Companies: Duke Royalty Limited

14 Sep 21

EQTEC* -

EQTEC have confirmed that they have completed acquisition of a 1.2MW gasification plant. The plant is expected to be operational by Q4 2022.

Companies: EQTEC PLC

14 Sep 21

Copper cash flow kicks off royalty build-out

Altus has acquired an effective 0.418% NSR over the producing Caserones copper mine in Chile. Altus’ royalty interest was acquired for $34.1m in cash as part of a strategic 50:50 partnership with EMX Royalty Corp. The acquisition was part financed with a $29m loan facility from major shareholder, La Mancha. The royalty is immediately cash generative and Altus expects the NSR to generate post-tax royalty flows of US$3.2m pa. Caserones is a large open-pit copper porphyry in Chile, operated by JX N

Companies: Altus Strategies PLC

20 Sep 21

Open Orphan - Interim results

Interim results showed a 240% (+£15.2m) increase in proforma revenues to £21.9m, with sequential half-yearly growth of 55% (+£7.8m), driven principally by non-COVID-related studies. The company has guided to revenues (including other income) of c.£40m in 2021 and is targeting c.£50m in non-COVID revenue in 2022, with any COVID-related revenue being in addition to this. The shortfall from our previous 2021 estimate of £46m is attributed predominantly to the ongoing completion of a COVID challenge

Companies: Open Orphan Plc

20 Sep 21

Redx Pharma presents at European Society for Medical Oncology (ESMO) Congress

20 Sep 21

Supermarket Income REIT snap up six new acquisitions

20 Sep 21

Lufthansa to raise €2.1bn to repay the state bailout earlier

The group has announced a capital increase of €2,140m, of which the scale is smaller than our assumption of €2,500m but the 597.7m increase in the number of new shares is larger than our assumption of 340m. We expect a lower target price due to a larger-than-expected dilution effect.

Companies: Deutsche Lufthansa AG

20 Sep 21

iClima Earth: When will the grid be green and how much storage will that require?

20 Sep 21

Kavango Resources' upside potential at KSZ in Botswana and strategy plan to accelerate progress

20 Sep 21

Merck & Co., Inc. - Investment Thesis, Key Drivers, Financial & Price Forecasts, DCF Valuation 9/21

Merck delivered a strong result with meaningful revenue growth in the second quarter, driven by strong underlying demand for products across their growth pillars and the continued recovery of the business due to improved patient access. Its Human Health business continues to regain momentum and achieved 18% growth in Q2 excluding the impact of foreign exchange. The company’s sales of its core Keytruda drug increased by 20% to $4.2 billion in oncology, reflecting continued strong global demand. I

Companies: Merck & Co (MRK:NYSE)Merck & Co., Inc. (MRK:NYS)

20 Sep 21

Dell Technologies Inc. - Investment Thesis, Key Drivers, Financial & Price Forecasts, DCF Valuation 9/21

Dell reported another solid quarter driven by an excellent performance in the commercial sales. Its Client Solutions Group business was the major driver of growth and reported a staggering 27% rise in sales of which the growth in commercial sales alone was 32% whereas consumer sales were up 17%. The company has made an exciting set of new launches including the APEX portfolio of services, the Dell EMC VxRail hyperconverged infrastructure or HCI systems with enhanced software and performance, bas

Companies: Dell Technologies Inc (DELL:NYSE)Dell Technologies Inc Class C (DELL:NYS)

20 Sep 21

Esker - Returning to pre-COVID-19 growth path

Esker’s H121 results confirm growth has accelerated after a period of COVID-19-induced weaker demand in FY20. Revenue growth of 19% y-o-y compares to 8% growth in H120 and FY20. Despite increasing headcount by 12% y-o-y, Esker reported operating profit growth of 47% and an operating margin at the higher end of the company’s 13–15% target range. While FY21 guidance is unchanged, our earnings forecasts for FY21/22 have been revised to reflect the pace of cost increases and wage inflation.

Companies: Esker (ALESK:EPA)Esker SA (ALESK:PAR)

20 Sep 21

Cenkos: Ingenta Plc -- Recurring revenue and efficiency drive cash returns

Ingenta is a provider of software technology and supporting services to content providers and publishers around the world. The company enjoys a stable, high level of recurring revenue and has consistent cash generation leaving it well positioned for its planed future growth and able to introduce a progressive dividend policy announced today with the H1/21 interim results (4.5% forecast yield). Ingenta has a well-established market position and requires minimal investment in its core products for

Companies: Ingenta plc

20 Sep 21

Eqtec continue to deliver on three year strategy, announcing Kibo Energy deal for Billingham plant

20 Sep 21

InMed Pharmaceuticals - Acquiring BayMedica

InMed has announced that it has entered into a definitive agreement to acquire BayMedica, a private US-based company that is focusing on the manufacture and commercialization of rare cannabinoids. This is an all-stock transaction in which InMed will issue 1.78m shares to BayMedica’s equity and convertible debt holders. At the current stock price, this values BayMedica at approximately US$4m. Following the closure of the transaction, the combined company will have expertise in both yeast and bact

Companies: InMed Pharmaceuticals Inc. (IN:TSE)InMed Pharmaceuticals Inc. (INM:OTC)

20 Sep 21

SP Angel Morning View: Energy and Evergrande elevate market risk depressing commodities

Alba Mineral Resources (ALBA LN) – Expansion of mineral licences in North Wales Aura Energy* (AURA LN) – Exploration activities at the Tiris Uranium and Tasiast South Projects BlueRock Diamonds (BRD LN) – Interims highlight progress towards 1mtpa throughput target Caerus Mineral Resources (CMRS LN) – Copper and gold confirmed in the Kalavasos dumps Eurasia Mining (EUA LN) – $15m equity raise to progress Rosgeo JV Rainbow Rare Earths* (RBW LN) BUY, Valuation range 39-60p – K-Tech processing

Companies: AEE BRD CMRS EUA RBW SRB URU

20 Sep 21

Central Asia Metals: H1 2021 Interim Results

Central Asia Metals (CAML LN) reported strong interim results as copper, lead and zinc prices extended their gains up 21%, 11% and 12% YTD. H1 2021 revenue of US$101m was up 42% YoY, EBITDA of US$64m was up 52% YoY and the EBITDA margin increased 5pp to 61%. With no significant other charges, net income was up 69% YoY to US$42m. Having marked to market our commodity price assumptions, our estimates are broadly unchanged meaning CAML remains well on track for a record year of earnings underpinned

Companies: Central Asia Metals Plc