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http://www.allenbycapital.com/research_886_3866217389.pdf

It amazes me that people believe everything Allenby Capital say in their research notes without seemingly doing any further research.

Do your own research and never believe anyone without doing your own thorough research.

Do you believe everything written in a newspaper. No, you don't without doing further research.

If you're investing your own hard earned money then you research everything you can find about a company before you invest.

Then after investing you continue to research everything you can find about the company in order to decide whether to remain invested or not. If you don't do this then you're gambling and not investing.

CAP-XX to buy Murata’s supercapacitor production lines

CAP-XX, the Sydney supercapacitor specialist, is to buy the supercapacitor production lines of its licensee Murata and relocate them from Japan to Sydney, and begin producing Murata’s three supercapacitor families in Q3 2020.

CAP-XX will produce supercapacitors that are identical to what Murata makes today, and maintain existing pricing, to guarantee customers a continuity of cost and supply.

Murata licensed CAP-XX’s patents in 2008, began producing supercapacitors in Japan in 2013, and has since significantly built its supercapacitor business.

After a strategic review of its business model in 2018, Murata decided to exit some of its non-core business lines including supercapacitors. Hence, the two companies reached agreement for CAP-XX to acquire Murata’s production lines, and have been working together for over 12 months to ensure their successful relocation.

CAP-XX says that Murata’s state-of-the-art production lines are newer, more efficient and have far greater capacity than CAP-XX’s own facilities.

Murata is building enough inventory to satisfy customer demand during the interim after it ceases production in Q1 2020, until CAP-XX recommences shipments in Q3 2020.

From Electronics Weekly

Sadly people like Parkez are addicted to nasty commenting on here hence why he's got 3,799 comments to his name.

If they spent this time researching they would actually make money investing instead of gambling.

This is why they're angry because they know they haven't done the work needed to make good investments and take it out on those of us who have done the research.

Sad unhappy people.

You're really a very nasty person, aren't you. Read my comment again.

People like you sadly do get heart attacks early because you're so full of anger.

You don't do any research, do you?

You're like some others on here, you spend your time making nasty comments and never doing any research.

You're obviously a gambler and not an investor.

You hate people that actually do research because you don't do any research at all.

I've met others like you on here.

Go and do some actual research and leave the rest of us to carry on doing our own research.

Stop with the nasty comments and you might learn to be happy in life.

You are very touchy, aren't you?

The brackets refer to CAP-XX's financial year because their financial year is different to the financial year normally used.

It wasn't meant to deceive. It was meant to show the difference. If it was confusing then my mistake.

You really need to de-stress and take your anger out on something inanimate rather than on people.

It's not a competition on here. We're simply sharing opinions.

Life is too short to behave like you do. You'll give yourself a heart attack being so angry.

Chill. Life is good. Think positively.

What are the quarter dates for 2020?

In the finance world quarter 1 usually spans January 1-March 31; quarter 2 usually spans April 1-June 30; quarter 3 usually spans July 1-September 30; and quarter 4 usually spans October 1-December 31.

Murata's financial year runs from 1 April to 31 March.

Yes I'm enthusiastic Parkez about CAP-XX because I've done loads of research on them. I've researched everything I can find about CAP-XX.

Through my research on CAP-XX I found out their financial year runs from 1 July to 30 June each year.

It helps to do your own research and never make any assumptions about your investments.

CAP-XX's financial year runs from 1 July to 30 June each year.

CAP-XX is an Australian Company and yes its financial year is different.

http://www.allenbycapital.com/research_886_3866217389.pdf

It amazes me that people believe everything Allenby Capital say in their research notes without seemingly doing any further research.

Do your own research and never believe anyone without doing your own thorough research.

Do you believe everything written in a newspaper. No, you don't without doing further research.

If you're investing your own hard earned money then you research everything you can find about a company before you invest.

Then after investing you continue to research everything you can find about the company in order to decide whether to remain invested or not. If you don't do this then you're gambling and not investing.

It's my understanding from research that share prices are held back by those who are waiting to break even and sell. It's only when these shareholders get to break even and sell that the share price takes off.

CAP-XX to buy Murata’s supercapacitor production lines

CAP-XX, the Sydney supercapacitor specialist, is to buy the supercapacitor production lines of its licensee Murata and relocate them from Japan to Sydney, and begin producing Murata’s three supercapacitor families in Q3 2020 (CAP-XX’S Q3 2020 runs from 1 January 2020 to 31 March 2020).

CAP-XX will produce supercapacitors that are identical to what Murata makes today, and maintain existing pricing, to guarantee customers a continuity of cost and supply.

Murata licensed CAP-XX’s patents in 2008, began producing supercapacitors in Japan in 2013, and has since significantly built its supercapacitor business.

After a strategic review of its business model in 2018, Murata decided to exit some of its non-core business lines including supercapacitors. Hence, the two companies reached agreement for CAP-XX to acquire Murata’s production lines, and have been working together for over 12 months to ensure their successful relocation.

CAP-XX says that Murata’s state-of-the-art production lines are newer, more efficient and have far greater capacity than CAP-XX’s own facilities.

Murata is building enough inventory to satisfy customer demand during the interim after it ceases production in Q1 2020, until CAP-XX recommences shipments in Q3 2020.

From Electronics Weekly

CAP-XX Q1 FY21 runs from 1 July 2020 to 30 September 2020

CAP-XX FY21 runs from 1 July 2020 to 30 June 2021

CAP-XX FY22 runs from 1 July 2021 to 30 June 2022

Hope that helps

We would expect an improvement in FY22 over FY21 with the growth in licence and royalty revenue as well as better gross margins in product sales - the Murata manufacturing line offers better gross margins and with longer production runs, downtime is reduced. There are also economies of scale available.

The increase in the manufacturing capacity should also increase the scope for CAP-XX to reclaim tax credits around R&D spend.

From Allenby Capital Research Note on CAP-XX

60% gross margin on revenue of c. A$13m, once the capacity is fully operational, equivalent to c. A$8m of gross profit per annum on the basis of Murata’s current revenue. There is scope to scale this further.

From Allenby Capital Research Note on CAP-XX

The current installation schedule for the Murata manufacturing line suggests that production will commence in Q1 FY21.

From Allenby Capital Research Note on CAP-XX

AVX royalty income is expected to grow and CAP-XX will be a much larger supercapacitor manufacturer with reach into multiple markets with a broader product offering. As such, it will have a higher profile and is more likely to have the necessary product for a potential licensee.

From Allenby Capital Research Note on CAP-XX

CAP-XX will be able to use the new 2.75V and 3V chemistries developed for the 3V coin battery on the Murata manufacturing lines. It is expected that the performance of the products made on the Murata lines will outperform those made by CAP-XX in Malaysia. CAP-XX should also benefit from Murata’s manufacturing expertise during the handover period to accelerate the development of other new products.

From Allenby Capital Research Note on CAP-XX

There is minimal outlay for the assets and the bulk of the project costs are associated with moving the manufacturing lines and recommissioning them at CAP-XX’s new manufacturing facility. This includes training, factory fit out, freight etc. CAP-XX has been exploring ways to increase its manufacturing capacity for some time to respond to the record sales enquiries. The proposed acquisition represents by far the lowest cost option.

From Allenby Capital Research Note on CAP-XX

Murata invested heavily in its supercapacitor manufacturing to reduce the unit cost of production. In addition, Murata has focused on five main products. As a result, it has much longer run times and higher product gross margins. Post the transaction, CAP-XX will be able to offer three tiers of products: its existing prismatic supercapacitors that are available in multiple form factors, Murata’s volume prismatic products and CAP-XX’s cylindrical products.

From Allenby Capital Research Note on CAP-XX

Importantly the 2.75V and 3V chemistries that CAP-XX has developed for its new range of products, that are designed to be used with 3V coin batteries, will be improved when made on the Murata manufacturing lines.

From Allenby Capital Research Note on CAP-XX