Renewable Weekly – 11 November 2024

The growth journey has started

Hexagon Composites ASA: 1 director

A director at Hexagon Composites ASA sold 66,856 shares at 44.400NOK and the significance rating of the trade was 59/100. Is that information sufficient for you to make an investment decision? This report gives details of those trades and adds context and analysis to them such that you can judge whether these trading decisions are ones worth following. Included in the report is a detailed share price chart which plots discretionary trades by all the company's directors over the last two years ...

Hexagon Composites (Buy, TP: NOK54.00) - Margin expansion materialisin...

Q3 EBITDA was NOK184m, 8% above our estimate and 13% above consensus on higher cost scalability than expected. We have raised our 2024–2026e EBITDA by 10–12%, as the strong margin trend looks set to continue, with greater scale in operations. However, we now expect a more back-end loaded 2025, in line with regular seasonality. We still view the stock as trading attractively on 2025–2026e EV/EBITDA of 9.8–7.9x. We reiterate our BUY and have raised our target price to NOK54 (50) on increased estim...

Energy Morning - 6 November 2024

Renewable Weekly – 1 November 2024

This week, we summarise this week's most important newsflow on the companies under our coverage.

Awaiting 15L data and the HPUR capital raise

Hexagon Composites (Buy, TP: NOK50.00) - Awaiting orders

We expect the higher activity level to translate into higher operating leverage, and forecast Q3 EBITDA of NOK170m, 5% above consensus. We believe the focus in the report will be potential new orders related to the X15N engine. We are 5–10% above consensus on 2024–2026e EBITDA, and see potential for positive revisions. We reiterate our BUY and NOK50 target price, and see the standalone company trading attractively at 2025–2026e EV/EBITDAs of 8.3–6.7x.

Renewable Weekly – 25 October 2024

This week, we summarise this week's most important newsflow on the companies under our coverage.

Renewable Weekly – 17 October 2024

This week, we summarise our Q3 previews for the sector.

Renewable Weekly – 8 Oct 2024

This week, we highlight the Norwegian Water Resources and Energy Directorate updated LCOE estimates.

Renewable Weekly – 24 Sept 2024

Renewable Weekly – 13 Sept 2024

On aggregate, the R&C stocks underperformed (equal weight) the MSCI Nordic by ~1% throughout the reporting season (10 July to today).

Renewable Weekly – 4 Sep 2024

A soft week for renewables: of our basket of 38 stocks, returns were positive for 10 and negative for 28 on the week.

Renewable Weekly – 30 August 2024

A soft week for renewables: of our basket of 38 stocks, returns were positive for 21 and negative for 17 on the week.

Hexagon Composites (Buy, TP: NOK45.00) - Hitting the (natural) gas

Hexagon Composites has raised NOK300m for financial flexibility to pursue specific near-term acquisition opportunities to further exploit the favourable markets it operates in, and for supporting Hexagon Purus. We see the company benefiting from strong market tailwinds and higher activity ahead. We reiterate our BUY and have raised our target price to NOK45 (40). Stand-alone Hexagon Composites is trading at what we consider an attractive 2025–2026e EV/EBITDA of 8.3–6.8x.

Renewable Weekly – 19 August 2024

Hexagon Composites (Buy, TP: NOK40.00) - Progressing ahead of expectat...

We have raised our 2024e EBITDA by 13% (6% above consensus), due to solid Q2 margins and increasing order intake, and 2025e by 6% on the optimistic market outlook. While uptick in activity in 2024e appears fully priced in, in our view the stock is trading attractively at a 2025–2026e EV/EBITDA of 8.0–6.8x. We reiterate our BUY and NOK40 target price, which is set at a slight discount to our 2025e EV/EBITDA-based SOTP.

Q2 de-risks the growth path

Renewable Weekly – 8 August 2024

This week we provide a summary of news flow and research from our Renewables & Cleantech equity coverage (and related companies) released during the summer break.