Report
Pierre-Yves Gauthier

Allowing for 2017 financing (Europlasma)

Allowing for 2017 financing

TARGET CHANGE

CHANGE IN TARGET PRICE€ 0.35 vs 0.68 -48.0%
The sharp drop in the target price is due to an overdue set of adjustments that combines the H1 17 release and the dilution associated with financing, as well as a full resetting of forecasts to allow for various delays.

CHANGE IN EPS2017 : € -0.11 vs 0.02 ns
2018 : € 0.01 vs 0.05 -85.0%
Updates to fragile forecasting models and dilution factors lead to significant corrections. 2017 earnings have also been hurt by capacity constraints at Inertam.

CHANGE IN NAV€ 0.38 vs 0.62 -39.4%
An overdue set of adjustments which combines the H1 17 release and the dilution associated with financing, as well as a full resetting of forecasts to allow for various delays, has an impact on the fragile NAV computations.

CHANGE IN DCF€ 0.57 vs 1.06 -46.7%
An overdue set of adjustments which combines the H1 17 release and the dilution associated with financing, as well as a full resetting of forecasts to allow for various delays, has an impact on the fragile DCF computations.
Underlying
Europlasma

Europlasma SA. Europlasma SA is a France-based company that offers a range of solutions for hazardous waste treatment. The Company's technology allows converting toxic waste into reusable materials. The Company is composed of four entities, such as Europlasma Torch & Process, which provides engineering consulting for hazardous waste treatment, and sells and licenses its plasma torches and technology; Inertam SAS, which specializes in destruction and valorization of asbestos waste and operates ash melting units; CHO Power SAS, which supplies technological solutions for the efficient transformation of biomass and waste into electric energy and Europe Environnement, which offers ventilation and air cleaning systems for industrial applications.

Provider
AlphaValue Corporate Services
AlphaValue Corporate Services

AlphaValue Corporate Services capitalise on the research and credit analysis expertise deployed by AlphaValue with major institutional investors at European level over the past nine years. The proprietary tools and processes enabling AlphaValue Corporate Services to establish a valuation and/or a credit risk assessment are identical to those used by AlphaValue to the benefit of its institutional clients. The only difference is the recognition that a company evaluation cannot be dissociated from the fact that the latter is paying for the service (AlphaValue Corporate Services), as opposed to the investor footing the bill (AlphaValue). AlphaValue’s research tools are characterised by the transparency of the valuation methodologies, their responsiveness to market data and by nine years’ experience of a universe numbering more than 450 European companies. Through its coverage and sector exhaustiveness, AlphaValue ranks alongside the major research houses in Europe and constitutes the only new entrant to the European space in the past decade. This significant presence is reflected in an unrivalled distribution capability via platforms commonly adopted by investors to access research: Factset, Bloomberg, Capital IQ and the numerous websites. AlphaValue is one the largest research contributors to these platforms, to the benefit of AlphaValue Corporate Services issuer clients.  The AlphaValue Corporate Services analysts are AlphaValue’s sector specialists. Their robust knowledge of the business models in their sectors enables the rapid generation of incisive, relevant research and advantageous interaction with the management teams.

Analysts
Pierre-Yves Gauthier

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