Report
Pierre-Yves Gauthier

Inclusion 2017 figures; little change to forecasts (Europlasma)

Inclusion 2017 figures; little change to forecasts

EPS CHANGE

CHANGE IN TARGET PRICE€ 0.38 vs 0.36 +5.05%
The 2017 earnings recognize additional losses that can be seen as investments as Europlasma has delivered on its complex power generation projects.

CHANGE IN EPS2018 : € -0.01 vs 0.00 ns
2019 : € 0.00 vs 0.01 -75.1%
2017 EPS allow for deeper losses, financed by new equity issues. Dilution should stabilize from 2018-H2 onwards.

CHANGE IN NAV€ 0.35 vs 0.43 -17.4%
The NAV allows for the extra funding costs, i.e. new shares and the refinancing of a convertible due by late 2018.

CHANGE IN DCF€ 0.83 vs 0.70 +19.2%
The DCF is mainly a best effort type projection on the cash generation from new power plants that still need to be financed. The level of minority interests in the next round of funding is still an open subject (please read report), meaning that DCF-based valuations are fragile.
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

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Analysts
Pierre-Yves Gauthier

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