Report
Pierre-Yves Gauthier

Allowing for delay-driven H1 losses (Europlasma)

Allowing for delay-driven H1 losses

TARGET CHANGE

CHANGE IN TARGET PRICE€ 0.21 vs 0.34 -38.5%
The small new energy group is suffering from further delays to fine-tune its power generation technology. This implies continuing refinancing concerns that have sent the share price down in a negative spiral. We have allowed for higher dilution compared to the previous scenario. As a reminder, Europlasma may use its existing majority control of the power generation business to raise cash at this level as well.

CHANGE IN EPS2018 : € -0.05 vs -0.01 ns
2019 : € -0.01 vs 0.00 ns
EPS suffers from the H1 18 loss, meaning the first "normal" year of operation for the waste to energy venture is 2019 and not 2018. 2018 is busy fine-tuning the technology implying stop and go power production and a lower than expected top line.

CHANGE IN NAV€ 0.23 vs 0.35 -34.5%
The lower NAV per share recognises a higher forward looking number of shares. The underlying assets valuation is essentially unchanged.

CHANGE IN DCF€ 0.45 vs 0.72 -37.6%
The lower DCF recognises a higher forward looking number of shares and a higher debt level at the close of 2018.
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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