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SIT’s full year results broadly confirm the picture seen when the preliminary sales figures were announced but there has been a slight improvement with outturn sales growth of 3.4% against the 3.3% signalled in January. Both sales and EBITDA modestly beat our forecasts and the heating and water metering business continues to show growth across the year. The fourth quarter saw a rebound in gas metering and we expect this to continue in FY 23. Heating may slow however given the impact of higher in
Companies: SIT S.p.A.
Longspur Clean Energy
SIT’s initial release of preliminary results for FY 22 show continued growth in the heating business offsetting the decline in smart gas metering as the Italian smart meter programme comes to an end. Water metering also shows good growth and now accounts for a third of metering sales. While heating remains an area of strong opportunity, water metering and the new opportunity in controlled mechanical ventilation show an increasingly diverse business.
SIT’s stake in UpSens brings it opportunities to develop into the fast growing Controlled Mechanical Ventilation market. The deal brings SIT greater exposure to the smart buildings concept and to build on its experience in monitoring and control.
SIT’s joint venture in ultrasonic water metering allows it to gain a leading technical advantage in this growing market and builds upon the company’s successful entry into the water metering market following its acquisition of Janz in 2020.
SIT’s Q3 results see growth in heating and water metering offset by the continued decline in gas metering. We have tempered our forecasts given a slightly more volatile environment but continue to see potentially strong opportunity as the company rolls out a broader product portfolio and continues to grow the water metering business.
SIT’s selection as the designer of Italgas’ next generation smart meters shows that the extensive R&D undertaken by the company is paying off. While Italian smart meter sales have fallen with market saturation, this move shows that the company will be able to benefit as the replacement cycle comes round. With hydrogen and biomethane functionality SIT it is also ahead of the game in targeting opportunities in the energy transition.
SIT’s first half results see overall revenue growth continue despite the expected continued slowdown in gas metering sales in Italy. Both heating and water metering have continued to grow strongly. EBITDA margin has dropped with higher transport and logistic costs but key component and raw material costs have been passed on. With the top end of full-year guidance reiterated, we see the company managing well in a volatile and uncertain market.
SIT’s Q1 results show the company shrugging off the expected slow down in Italian metering sales with strong growth in heating and even stronger growth in water metering. Margins have held well and SIT continues to manage supply chain risk effectively. Guidance remains comfortable giving us confidence in our forecasts.
SIT has set out a sustainability plan out to 2025 to align the company’s strategic goals with their ongoing environmental, social and governance commitments. The company enables key energy transition technologies providing gas heating components and smart gas meters and most notably key componentry for hydrogen gas use including meters. We see the plan as making the company more attractive to ESG investment mandates.
In this note, we review the recent performance of the Active Net Zero Clean Energy Index. We also take a deeper dive into the composition of the Index in terms of market cap, constituent end market / business model and, finally, geographic exposure.
Companies: TLG ITM VLS DRX PHE GSF NESF EQT SIT IES STRLNG SAE ATOM ADN
The IPCC Working Group III (WG3) report is a major summary of how society can limit climate change by delivering a net zero emission outcome. It also represents a major warning that we are running out of time to limit global warming to 1.5oC. Coupled with growing energy security concerns we are already seeing some signs of policy moving to improve action such as the recently announced UK government’s Energy Security Strategy. And the relative inflation of fossil fuels (fossilflation) against cle
SIT’s full year results were ahead of our forecasts at all levels and principally reflect strong growth in heating and water metering offsetting a well-signalled slow-down in gas metering. The company also continues to manage supply chain well and is maintaining margin. We expect to see continued strong growth in heating and have increased our forecasts for FY 23 and FY 24 accordingly. Our base case valuation rises from €12.1 to €13.0 as a result.
A new loan for SIT highlights the fundability of the company. We see the targeted spend on R&D facilities as important as new opportunities are emerging. Recent progress in hydrogen meters and in digital security shows the benefits of the company’s R&D work.
SIT has now achieved certification for both its residential and commercial hydrogen meters as well as digital security certification for both. With energy security concerns pushing hydrogen back up the agenda of many European governments, SIT is well placed to find new business beyond the existing trials in which it is participating.
The shipping industry is likely to be driven towards decarbonisation by the twin pressures of customer demand and regulation. Leading shipowners are already making significant strides in the right direction. Solutions are varied but are driven by considerations of emission reduction potential, fuel density, useability and cost. We think hydrogen and methanol stand out as key solutions in a market worth $105bn per annum with methanol taking an immediate role as commercially and technically viable
Companies: ITM PHE SIT ADN
Research Tree provides access to ongoing research coverage, media content and regulatory news on SIT S.p.A.. We currently have 32 research reports from 1 professional analysts.
Strix has reported FY23 results to 31 December 2023 with adjusted PAT of £20.1m, in line with our updated forecast and company guidance provided in January. Revenue grew 35.2% to £144.6m, benefitting from the full year inclusion of the Billi acquisition, albeit slightly below our forecast of £151.0m. Its core Kettle Controls division also performed robustly, growing 2.7%, ahead of the broader market and indicating market share gain. Recent acquisitions have noticeably improved the Group’s growth
Companies: Strix Group PLC
Zeus Capital
Companies: Yu Group PLC
Liberum
Companies: FOG PEB KBT EMR TIME GETB JNEO
Cavendish
Cohort announces that its subsidiary SEA (Systems Engineering and Assessment Ltd.) has been awarded a major contract by the UK’s Ministry of Defence to provide Electronic Warfare Counter Measures (Increment 1a) (EWCM 1a) to the Royal Navy with a total value of at least £135m. This includes provision and support of SEA’s Trainable Decoy Launcher System, Ancilia. At the FY 24 interim results Cohort had commented on an overall “increased tempo” of order intake. The Group reported a closing order b
Companies: Cohort plc
Equity Development
The focus of Hardman & Co Research is on the nine quoted Infrastructure Investment Companies (IICs) and on the 22 Renewable Energy Infrastructure Funds (REIFs): the stocks analysed are all members of the Association of Investment Companies (AIC). We are updating our publication of January 2023, assessing both the lacklustre share price performances during 2023 and the key issues, including interest rates, inflation and power prices. As a 31-strong group, its combined market capitalisation is no
Companies: AEIT ROOF DGI9 INPP GSF SEIT USFP HICL ORIT BSIF TRIG NESF SEQI HEIT GRP GCP FSFL 3IN AERI PINT RNEW BBGI GSEO DORE TENT GRID CORD HGEN AEET
Hardman & Co
Companies: Luceco PLC
Positives emerged, particularly in H2, as the recovery commenced within the kettle controls market. Billi was the architect of the revenue improvement, with LAICA also delivering a double-digit increase in the top line. Margins improved, notwithstanding a change in the mix. Encouragingly, investor concerns on debt were allayed with the careful management of cash, and latterly as bankers raised the net debt/EBITDA covenant to 2.75x. With further emphasis on costs and cash conservation and a lik
Quadrise continues to advance towards commercial revenues for its innovative fuel and biofuel technologies, with each of its projects approaching key milestones in 2024. Preparatory steps for the MSC Shipmanagement (MSC) fuel trials are now complete and fuel supply agreements are nearing finalisation. Quadrise will achieve its first licensing revenues on the successful completion of Valkor’s project financing (timing uncertain). Quadrise also successfully concluded its Morocco trial, paving the
Companies: Quadrise PLC
Edison
Companies: FOG TND BVXP ACC HDD
Companies: Flowtech Fluidpower plc
Companies: Michelmersh Brick Holdings PLC
Canaccord Genuity
Judges Scientific is a group involved in the buy and build of scientific instrumentation businesses. Testament to the strength of its highly engineered offer and global diversified customer base, total revenue increased an impressive 20.2% to £136.1m (organic +15%), with adj. PBT +7.5% to £31.7m (FY2022: £28.3m), 3.1% ahead of our estimate of £30.5m. Fully diluted (FD) adjusted EPS increased a more muted 2.6% (impacted by anticipated tax headwinds) to 368.5p (basic adj EPS 374.5p), 3.4% ahead of
Companies: Judges Scientific plc
WHIreland
Companies: BILN IGP RBN SBTX
Gelion has reported in line H1 FY24 results that demonstrate continued strong cash management and steady progress in its pursuit of next generation lithium-sulphur battery technologies. Encouraging early test results justify last year’s IP acquisitions and validate Gelion’s Li-S battery technology plan, with additional progress expected to be reported in H2 alongside its pursuit of a strategic partner for its planned Advanced Commercial Prototyping Centre (ACPC) facility in Australia. There is a
Companies: Gelion PLC
Forterra’s FY23 (to 31 December) earnings were slightly higher than guidance, which was raised in January, with resilient pricing partly offsetting a steep fall in demand among its main end users, large housebuilders. Our estimates are broadly unchanged, other than reflecting a more conservative stance on the final dividend. Despite a cautious tone in the outlook statement, we believe the largest housebuilders may now rebound more strongly than smaller peers.
Companies: Forterra Plc
Progressive Equity Research
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