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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.
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
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Companies: Invinity Energy Systems PLC
Invinity has followed the first sale of its Mistral flow battery with the news that the US Department of Energy will make funding available for 84 MWh of these larger units at six sites. This is major potential business in its own right but will also create a portfolio of reference sites, effectively seeding the US market for Invinity. The move gives us confidence in our long-term forecasts. We have factored in a gross margin gain for FY 24 and FY 25 as Mistral gains relative to the older VS3 pr
Longspur Clean Energy
Companies: Yu Group PLC
Strix has announced interim results for the six months to June showing revenue up 28.6% to £65.2m. The strong top line growth, driven by its 2022 acquisition of Billi, has resulted in gross profits rising 22.6% to £23.9m. Excluding Billi, revenue was down c. 14% yoy. Following updated guidance in today’s announcement, along with its Capital Markets Day, we adjust our forecasts to reflect the slower than anticipated economic recovery along with the impact rising interest rates have had on profita
Companies: Strix Group PLC
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YUG announced its finacial results for H1 2023 with revised Adj. EBITDA expectations for the year of over £33m, from ~£19m currently.
Companies: eEnergy Group PLC
Companies: Atome Energy PLC
Companies: Up Global Sourcing Holdings PLC
ATOME’s interims reflect the company making rapid progress in developing its green fertilizer projects in Paraguay with Phase I Villeta hoping to reach FID before the year end. The expansion of secured electricity now sees the company with power purchase agreements supporting 445MW of capacity in country.
Avingtrans has reported a robust set of FY23 results with EBITDA growth of 10.6%, marginally ahead of expectations. The Group entered the current year with good momentum and a strengthened order book that now provides over 90% visibility for FY24 and over 45% for FY25. Post year-end the Group acquired the assets of Slack & Parr, a specialist pump manufacturer, and also recently completed the acquisition of Adaptix, a manufacturer of compact 3D X-ray machines, as well as investing further in Magn
Companies: Avingtrans plc
Singer Capital Markets
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