General Electric Company: New Product Lines, Restructuring & Other Developments, Financial Forecasts, DCF & Comparables Valuation, ESG & Other Risks (08/22)

General Electric has started seeing a solid recovery in its aerospeace business which has become an important growth driver for the company. Backed by the surge in aerospace-related demand after the pandemic, the company delivered a strong quarter with growth in profit, revenue, and orders and positive free cash flow as well in spite of the continuing macro pressures. It managed to surpass Wall Street expectations as its high-margin services have persisted in being a bright part of this quarter.

General Electric Company: Financial & Price Forecasts, DCF & Comparables Valuation, ESG & Other Risks (05/22)

General Electric saw an improvement in its order book position from the beginning of 2022. Organically, the orders were up by approximately 13% in both equipment and services, and double-digit growth was seen in power and aviation. There was a slight rise in revenue because of development in top-margin services in every segment. Because of supply chain constraints, inventory and receivables built in the second half, its free cash flow generation has been negative. However, one positive for the m

General Electric Company: Detailed Credit Analysis & Financial Strength Evaluation Report, Key Risks & ESG Assessment (04/2022)

General Electric had a fairly decent 2021 despite the fact that the company operated in a fast-changing environment. The management managed to deliver decent free cash flows, earnings growth, and solid margin expansion. GE focused on its portfolio, strengthened its operating performance, and significantly reduced debt through decentralization and lean. There was a reduction in debt by $25 billion. As the end markets strengthen and its aviation business recovers, the management is viewing real pr

General Electric Company: Financial & Price Forecasts, DCF Valuation, ESG & Other Risks (04/22)

General Electric was effectively able to steer a dynamic environment in 2021, delivering decent free cash flows, earnings growth, and solid margin expansion. The company focused on its portfolio, strengthened its operating performance, and significantly reduced debt through decentralization and lean. There was a reduction in debt by $25 billion, and the company is transitioning to a simpler reporting structure. As the end markets strengthen and aviation recovers, the management is viewing real p

General Electric Company - Investment Thesis, Key Drivers, Financial & Price Forecasts, DCF Valuation 10/29

General Electric reported a decent result with revenues below expectations but a strong rise in the order book. The company’s aviation business saw a particularly notable jump of 69% year over year to $6.9 billion given the demand for spares from its commercial services markets. While its shipments of commercial engines were low, the company did try to offset the same through higher orders in its military business. GE Healthcare also performed exceptionally well during the quarter with a 21% jum

General Electric Company - Investment Thesis, Key Drivers, Financial & Price Forecasts, DCF Valuation

General Electric delivered a decent result with a surprise positive free cash flow of $388 million contrary to market expectations. The management has given a positive free cash flow guidance for the year as the company hopes to witness a recovery in its aviation business. Like most industrial players, GE is also facing inflationary pressures that are affecting most of its businesses. The company has its fair share of struggles associated with rising lead times and inventory levels, supply chain

General Electric Company - Investment Thesis, Key Drivers, Financial Forecasts & DCF Valuation

General Electric’s restructuring and turnaround efforts have continued over the past few months but the company’s results have not been too good. A slow recovery in the power and renewable energy segments coupled with continued strength in healthcare are the key drivers behind its recent performance. GE has deeply felt the impact of the Covid-19 pandemic on its aviation segment which ultimately weighed on the overall performance of the company. Nevertheless, there are still some positive develop

Invinity Energy Systems - JV to Target US Opportunities

Invinity’s proposed JV with U.S. Vanadium creates a vehicle to exploit the clear opportunities arising in the U.S. storage market from the Inflation Reduction Act of 2022. With half a million dollars of potential JV development funding from U.S. Vanadium, we see the joint venture as well set up to capture a large and growing market for long duration energy storage.

Invinity Energy Systems - Orkney Project Energised

The energising of Invinity’s 1.8MWh flow battery in Orkney may not be its largest project but it is an important illustration of an application that benefits from the high-throughput non-degrading characteristics of Invinity’s technology. Specifically, it is a key demonstrator of how Invinity could integrate disparate elements of the energy system to produce commercially viable outcomes.

Review of Electricity Market Arrangements - REMA Could Bring Benefits

Last week, the UK government published the consultation paper on its Review of Electricity Market Arrangements (REMA). Any change potentially represents uncertainty in a market that has been wary of changes with a number of shares falling after early details of possible reforms were flagged in the press. We review the possible changes and conclude that while there is some risk, from what we can see at present the likely outcomes could be either minimal or beneficial for investors in clean energy

Powerhouse Energy - Management Changes a Distraction

Management changes including the departure of the CEO create an unwelcome distraction for Powerhouse as it increases its exposure to the Protos project SPV. This now effectively makes it a JV partner in the project. The company will start work on replacing both CEO and NEDs immediately.

SHORE CAPITAL - Crestchic+ (LOAD) - House stock at 196p

Invinity Energy Systems - Improving Liquidity for US Investors

Invinity has begun trading shares on the OTCQX Best Market in the USA. We see this as adding liquidity for North American investors and more generally increasing visibility for the company in key markets in North America.

Hybridan Small Cap Feast 09/08/22

Dish of the day Joiners: No joiners today. Leavers: No leavers today. What’s cooking in the IPO kitchen?** Unigel Group, intends to join the Aquis Growth Market. Unigel Group is a pioneer in the field of thixotropic gels for the fibre optic cable industry. The Company is also a supplier of laminated steel tapes to the fibre optic cable industry in the US. Thixotropic gels and laminated steel tapes are essential components to the rapidly growing global fibre optic cable market. The Group exports

Inflation Reduction Act

The US Inflation Reduction Act of 2022 now has a chance of passing the Senate next week as it is being voted under the Reconciliation procedure which allows bills related to the budget to pass on a simple majority rather than the 60-vote majority required to overcome a filibuster. If the act does find its way onto the statue books it will bring US$369bn in clean energy tax credits, grants and other incentives. Much is directed to protecting clean energy manufacturing in the USA, but it is a wide

Q2 22: mixed signals

Rolls Royce published mixed figures. Profitability was particularly low, pushing the net result back into the red zone. However, FCF generation was a positive surprise despite the rise in inventory. It has finally found an agreement to sell ITP Aero and will use the resulting cash to repay its only floating interest rate debt.

Hybridan Small Cap Feast 16/08/22

Joiners: No joiners today. Leavers: No leavers today. What’s cooking in the IPO kitchen?** Unigel Group, intends to join the Aquis Growth Market. Unigel Group is a pioneer in the field of thixotropic gels for the fibre optic cable industry. The Company is also a supplier of laminated steel tapes to the fibre optic cable industry in the US. Thixotropic gels and laminated steel tapes are essential components to the rapidly growing global fibre optic cable market. The Group exports to over 40 count

Hybridan Small Cap Feast 17/08/2022

Dish of the day Joiners: No joiners today. Leavers: Altus Strategies Plc has left AIM. What’s cooking in the IPO kitchen?** Unigel Group, intends to join the Aquis Growth Market. Unigel Group is a pioneer in the field of thixotropic gels for the fibre optic cable industry. The Company is also a supplier of laminated steel tapes to the fibre optic cable industry in the US. Thixotropic gels and laminated steel tapes are essential components to the rapidly growing global fibre optic cable market. T

Renewi - Incorporating Paro, raising TP to £10

We revise our estimates, primarily to incorporate the Paro acquisition, resulting in an average 3% increase in our forecasts for diluted EPS through FY25. Renewi's FY22 results demonstrated that its business and financial performance have moved to a new level, underscored by the positive 1QFY23/AGM update. While Renewi has started to re-rate, we continue to believe that the share price has yet to reflect the transformation in the company's earnings power fully, while the potential ECP bid for Bi

Westminster Group* - 1H22 results – making progress, 2H22 weighted

Westminster Group reported a 13% increase in revenue YoY and raised gross margins to 51%, cutting the net loss by 15% YoY to £0.8m. Results are expected to be weighted to 2H22 with a number of large scale projects in the offing to add to the £3.5m in new orders already secured this year. Consequently, we maintain our current forecasts including a full year profit of £1.1m. We would expect the announcement of large scale orders to boost confidence in the equity story where the rating currently la

Cenkos: Oil & Gas -- Getech Group, Longboat Energy, Valeura Energy, Genel Energy, bp, EnQuest, SDX Energy, Eco (Atlantic) Oil & Gas, Occidental Petroleum, ConocoPhillips, Vaalco Energy, Phoenix Global Resources, Sirius Petroleum, Tullow Oil, Equinor, Sunco

Oil posted the biggest weekly decline since early April on growing signs that a global economic slowdown is curbing demand. Prices are near the lowest level in six months. West Texas Intermediate settled at $89 a barrel, ending the week nearly 10% lower. US gasoline consumption has dropped, stoking demand concerns, while low liquidity has added to volatility. Supplies from Libya also picked up, helping to shrink key oil futures time-spreads and ease the tightness in the market. The pullbac

LIBERUM: Staffline Group* - H1 restrained by investment but expect stronger H2