Tesla Inc: Launch In Thailand & Other Drivers, Financial Forecasts, DCF & Comparables Valuation, ESG & Other Risks (01/23)

Tesla delivered a mixed set of results in the last quarter and failed to meet revenue expectations of Wall Street. However, the company did manage an earnings beat. Tesla has had a challenging 2022 because of delivery challenges, high interest rates, and forced shutdowns. The demand side has not been a problem as orders are seen at around twice the rate of production. In response to that, the price of Model Y was raised a bit. On cost control, it is making quite good progress. For Autopilot, Tes

Tesla Inc: Universal Home Charging Station & Other Developments, Financial Forecasts, DCF & Comparables Valuation, ESG & Other Risks (10/22)

Tesla delivered a mixed set of results. The company’s revenues were well below Wall Street expectations but it did manage to reach an industry-leading operating margin of 17% which helped them deliver an earnings beat. Giga Berlin achieved a milestone of 2000 manufactured in a week with ramping rapidly and very good quality. The production of 4680 cells of Tesla tripped in the quarter in comparison to the previous quarter. The company is also having its second generation of manufacturing equipme

Tesla Inc.: Capacity Expansion, Government’s Infrastructure Plan & Other Drivers, Financial Forecasts, DCF & Comparables Valuation, ESG & Other Risks (08/22)

Tesla had been in the process of carrying out upgrades which resulted in a lengthy shutdown of its Shanghai factory. The company faced its fair share of challenges but had a highly resilient quarter and managed to produce an all-around beat. The most significant accomplishment was setting production records in Shanghai and Fremont in June. With the advent of a different solar supply and advancements in unit economics, the energy sector made good progress in Q2. Their energy business experienced

Tesla Inc.: Innovation & Cost Advantage, Financial Forecasts, DCF Valuation, ESG & Other Risks (05/22)

Tesla has been a major beneficiary from the rend involving the increasing adoption of electric vehicles in the U.S. and China. Though the company battles with the supply chain's challenges, it successfully managed the volume growth up to 90%. In comparison to 2020, the automotive gross margin of the company rose by more than 600 basis points. Tesla has reached the highest operating margin in the electric vehicle industry. Production has begun in its Berlin and Texas facilities to meet the rising

Tesla Inc.: Is The Cost Advantage Sustainable? 02/22

The year 2021 was a particularly historic one for Tesla and electric vehicles. Although the management faced supply chain challenges throughout the year, they increased their volumes by nearly 90% which was truly remarkable. It is worth highlighting that the company has been ramping up its capacity in Texas and Berlin. Tesla is building Model Ys in Texas with the structural battery pack and 4680 cells, and they will start delivering after the vehicle receives final certification, which should ha

Tesla Inc - Investment Thesis, Key Drivers, Financial & Price Forecasts, DCF Valuation 10/26

Tesla has been one of the hottest stocks this week after the major announcement from Hertz of ordering 100,000 Teslas by the end of 2022. The car rental company making a significant investment to build a large EV rental fleet has propelled Tesla’s stock above the $1000 threshold and well above our last target price. The company’s recent financial performance has also been strong with a 57% top-line growth and a 73% year-over-year increase in vehicle deliveries. Its low-cost models i.e., Model 3

Tesla Inc - Investment Thesis, Key Drivers, Financial & Price Forecasts, DCF Valuation 8/21

Tesla inches closer to the target price from our last report as the company has already achieved a record production and deliveries in the second quarter of 2021 and the company surpassed the $1 billion net income threshold for the first time. Moreover, the company is making great progress on the full Self-Driving and 4680 cells. However, the impact of the global chip shortage situation remains quite serious. The management is looking to regain its lost momentum in China after the recent public

AFC Energy (AFC LN) - First modular ammonia cracker system

AFC has unveiled a groundbreaking modular ammonia cracker system demonstrating viable and scaleable production of hydrogen in the UK using this method. The cracker system is designed to deliver 140 tonnes of fuel cell grade hydrogen each year. Hydrogen from the plant will initially be targeted for sale into AFC’s UK H-Power Generator deployments, including those with Speedy Hydrogen Solutions. Along with the recent purchase of the mobile storage and distribution assets of Octopus Hydrogen, AFC c

Spectra Systems - Today's deal powers polymer banknotes and provides a big earnings lift

This morning's announcement that SPSY is to acquire Cartor Holdings provides the company with significant new firepower as it embarks on lucrative central bank currency bids with its powerful and innovative polymer banknote technology. Cartor is a global market leader in security printing with manufacturing sites in the UK and France, supplying a range of printed security products which are highly complementary with SPSY's core portfolio, and offering significantly enhanced capabilities in rela

CAP-XX - Tax rebate received and JV signed

CAP-XX has announced the Australian Taxation Office has approved the FY23 R&D grant and associated rebate of A$2.1m. The net proceeds of A$1.0m, after repaying the principal and interest associated with the revolving line of credit drawdown, were received by CAP-XX last week.

Solid State - Strong interim results – trading in line with FY24 expectations

The group delivered a strong set of interims, boosted by a full contribution from Custom Power (CP) and its large military contract delivery. Organic growth was over 35%, with an improvement in underlying margins, albeit with the margin mix diluted by the military contract delivered. As flagged, H1 order intake saw some customer destocking, although there may be some early signs this could be abating. Even so trading remains resilient. The outlook points to trading in line with recently upgraded

Gooch & Housego - FY23 results in-line with expectations, better cash flow

FY23 results are in-line with expectations, showing growth from strong underlying demand, coupled with improved operational delivery. Growth was seen in all three divisions. Trading is in-line with the recent upgraded FY24 forecasts. Prospects are underwritten by a strong order book and boosted by the recent acquisitions of Artemis and GS Optics, albeit with some customer destocking by certain industrial customers, offset by robust demand in growth areas. Self-help measures and the new CEO’s str

Initial Equity Trading Comments - 1 December 2023

Games Workshop Group - Leviathan

Games Workshop Group (GAW) enjoyed another record year of revenue and profit growth in FY23 despite the more challenging macroeconomic backdrop and economy-wide cost pressures. Underlying volume growth is testimony to the appeal of the IP to its hobbyists. GAW entered FY24 with strong revenue momentum, implying that the June 2023 release of Leviathan, the 10th edition of its most significant property, Warhammer 40K, has boosted growth in Q124. Easing cost pressures should be supportive of underl

Hybridan Small Cap Feast - 4 Dec 2023

4th December 2023 @HybridanLLP Status of this Note and Disclaimer This document has been issued to you by Hybridan LLP for information purposes only and should not be construed in any circumstances as an offer to sell or solicitation of any offer to buy any security or other financial instrument, nor shall it, or the fact of its distribution, form the basis of, or be relied upon in connection with, any contract relating to such action. This document has no regard for the specific investment obje

PROGRESSIVE: IG Design Group: Strong profit growth, key strategy initiatives and quantified aspirations

IG Design Group delivered a 27% increase in adjusted PBT to $34.8m for H1 FY24 (to 30 September) with a significant reduction in net debt to $15.1m, as signposted in last month’s trading update. The adjusted operating profit margin was some 270bps higher at 8.6% (vs 5.9% in H1 FY23), the highest achieved since H1 FY20 ahead of the CSS acquisition. Management has provided more details on the key attributes and initiatives for its new growth-focused strategy. The group is on track to return to pre

The Joy of Techs - Cavendish Technology quarterly sector note

£23.3bn in enterprise value has been returned to AIM technology shareholders over the past six years in the form of 51 public to private takeouts, including 10 in 2023 alone with the takeovers of Smoove* and Tribal announced in early October. With UK valuations appearing cheap and looking more attractive to potential acquirers, we take a moment to reflect on the trends of corporate and private equity bidders targeting AIM-listed technology companies going back to 2017, through the uncertainties

Morning Note – 5 December 2023

First quarter of 2020

The covid-19 pandemic has had a devastating effect on the share price of property companies, with 31% wiped off the value of their total market capitalisation during the first quarter of 2020.

PROGRESSIVE: Sanderson Design Group: H1 trading driven by US and Licensing

Sanderson Design Group (SDG) has reported on its H1 trading performance for the six months to 31 July. The continued strong performances of both the Licensing channel and the US market, echoing last year, have offset the previously anticipated tougher market conditions in the UK. Thus, while group revenues eased back by 2.1% on a reported basis, H1 FY24E’s adjusted underlying profit before tax, supported also by some UK cost savings, is expected to be marginally ahead of last year’s £6.3m, drive

Byotrol - Interims and forecasts reinstated

Interim results to 30 September reflect lower one-off IP income. However, the trading outlook now appears more predictable, allowing for the reinstatement of forecasts. Revenues reported at £2.2m (vs £3.2m) with adjusted EBITDA £0.5m lower at -£0.35m, entirely driven by lower (£0.5m) IP income in the period, but illustrating a strong recovery (+490bps) in product gross margins. Evidence of market stabilisation post-pandemic and continued market share gains for Byotrol as companies exit the marke