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So you won't be investing then TestSack?....another saddo going on my filter
https://www.lse.co.uk/rns/EQT/croatia-joint-venture-update-w98emncpqv2pecq.html
Another 5MW Greek project (not mentioned below) was also announced. Still in the early stages so not near to financial close yet.
2021 revenue is being generated from 5 projects:
"However, and as previously announced, the Company continues to expect revenues in 2021 from technology sales to several entities and projects, including Agrigas of Larissa, Greece ("Agrigas"), the EQTEC Italia Market Development Centre ("MDC") in Gallina, Toscana, Italy ("Italia MDC"), the Belišce, Croatia MDC ("Croatia MDC"), the Karlovac, Croatia project ("Karlovac") and the Livadia, Greece project ("Livadia 1"), as well as from development services fees to the Croatia MDC, Karlovac, and Livadia 1."
Development service fees generate aa gross margin of 52% compared to technology sales gross margin of 24%. So by taking more time to mature the large projects, the date of financial close is moved forward but a higher gross margin can be recovered from development service fees.
This iis a strategy which has matured in the later part of 2021 with the addition of a new chief financial officer who joined in June.
You will be waiting and hoping for a share price dip before you invest here are you testpack? You have often commented on my posts in the last so you must have some interest in eqtec. What are your views for the 2022 share price? The graph very closely mirrors powerhouse energy which makes me wonder if the price dictated by the market/industry and not the fundimentals/projected hike in revenues and gross margins.
There very probably has in fact been several contract wins. Numerous might even be a better word. But we don't hear about them until they have an intrinsic and important value to the worth of the company. That is coming. Two huge projects were moved from Q4 to likely Q1. Hardly a long wait if its a big improvement to the value of the plants. News flow is imminent.
aandi, you were posting last June/July that there would be 'multiple contract wins before year end'. With the BOD abject failure at meeting it's own targets, your analysis is worthless, and a pipe dream. Start living in reality.
Maybe the market needs to see the final results around 19/4 showing income of between 8-10m euros. Once they are in black and white the share price may come out of the doldrums.
We could calculate a hypothetical value for eqtec based on the recent broker valuation of Ceres at 2x today's share price, or £3b market cap. As announced today, Ceres have made £32m revenue, up 44% from the previous year. Gross margin is around 71%.
Current P/S ratio (price to sales, or market cap to revenue) is 55x. If their revenue grows by 44% for the next 2 years, and P/S remains at 55x, their Market cap could be £3.1B by start of 2024.
Eqtec expecting 400% growth this year, around 500% next year, and around 90% the year after with gross margins improving each year.
A P/S of 55x on a 2023 forecast revenue of £80m would (hypothetically) give eqtec a market cap of £4.4B.
Ceres market cap doubles, EQTEC's market cap muktibags 40x
one can dream
You do know that the share price has no relation to the market cap? Ceres Markket cap is approx 15x eqtec so a like for like share price would be 18p for eqtec :)
I look forward to EQTEC at £8.39 per share then
Ceres trading update today...
" Revenue and other operating income for the 12 months to 31 December 2021 is expected to be in line with previous guidance at approximately £31.5 million, up 44% from £21.9 million in the prior calendar period, with consistently high gross margin
· Cash and short-term investments were approximately £250 million as at 31 December 2021"
From their interm results:
"As at 30 June 2021 our order book stood at £42.0 million and we had a further £43.8 million in the pipeline, being a combination of staged licensing payments and engineering services. The high proportion of licence fees continues to support healthy gross margins, which at 71.6% is consistent with the prior 18-month period and differentiated from our peers."
Eqtec last trading update:
" With the deferral of financial close for its two largest projects, the Company anticipates its total revenues for 2021 to be in the range of €8 - 10 million (2020: €2.2 million), representing strong growth. In line with these deferrals, the Company currently forecasts an EBITDA loss (adjusted for one-off share based payments) in the range of €2.5 - 3.5 million, prior to closing additional projects that might fall into the current financial year."
March 2021 trading update:
" Since the announcement of the Group's interim results in September 2020, the number of opportunities has grown from 41 to 75, an increase of 83% over six months. Additionally, between July 2020 and February 2021, the Company added non-contracted tender opportunities worth a total potential of €316 million for a total potential pipeline value of €657 million. Over the same period the Company sent full commercial offers worth a total of €246 million."
2019/20/21/22
Gross Margin year on year foor eqtec:
5.2% 11.4% 17.4% 29.4%
*Gross margin increasing year on year and will continue to increase as development service fees becomes a larger percentage of the revenue stream and the licensing fees are introduced by 2023/2024 with their 52% gross margin value to the company.
Future revenue - Licensing Gross Margin =75%
Future revenue - Development Service Fee Gross Margin =52%
*Revenue increase of over 400% 2020 to 2021. Forecast to increase around 600% 2021 to 2022.
Pipeline currently around 10x that of Ceres (correct as of June for ceres and February for eqtec)
Ceres current market cap £1.59billion
Eqtec £109m
This is my favourite share but I keep holding on too tight. Bought ages back, when I really should have been more adventurous, and then held even at 3.1p. Lots of good work going on and have to be patient / increase investment. Good luck all for a green and awesome future
Agreed martinu but at least it does show the first Green shoots of sustained commitment from our govt.
Thanks for posting.
To me, it just shows how uncommitted and out of touch the govt is. Only £5m for first phase research. But there is already technology out there! If they want to seriously support hydrogen (and waste 2 energy), perhaps £5bn to expedite projects like Eqtec's and others' which are in development / construction.