Full Article at IIR has reaffirmed its Recommended rating for PIA after undertaking a review post the appointment of a new Portfolio Manager, Harding Loevner. The full report can be found on the IIR website. On 26 July 2021, Pengana International Equities Limited (PIA) announced a fully franked dividend of 1.35 cents per share for the June quarter. This represents an 8% increase on the March quarter dividend and takes the total dividends declared for FY21 of 5.1 cents per share, fully franked....
Q1 saw revenue substantially beat our estimates and EBITDA turn positive. Some regions and products have been affected by COVID-19, but FY20 sales guidance remains intact and we leave our numbers unchanged. The company is on track to receive a cash payment of over $34m from its Ivory Coast contract in Q2. Receipt of this payment is not explicitly factored into our forecast and should address balance sheet concerns.
The contrasting trends observed in Q3 continued into Q4. While Custom Engineering Solutions (CES) sales stalled, Smart Product Solutions (SPS) grew substantially (doubling q-o-q). Guidance for SPS to rise ‘at least’ 20% in FY20 appears prudent given current uncertainties over China. However, it probably understates the commercial progress made in the last six months. We trim our FY20 top-line forecast, but with financial closure on the Ivory Coast contract achieved, Fluence should still be E...
Fluence has announced financial close on its Ivory Coast project. While there was little doubt this would be achieved at some point, it reduces uncertainty and enables at least US$20m in revenue to be recognised for work already completed. The precise timing of this revenue recognition is still unclear. Apportioning some or all of the US$20m to Q419 would significantly boost Fluence’s chances of delivering Q419 guidance (EBITDA profitability).
Fluence’s Q319 results reflected contrasting trends. Further delays to Custom Engineering Solutions (CES) contracts lead us to cut our forecasts again, but Smart Product Solutions (SPS) is on track. Significantly, Fluence secured two new large Aspiral deals in China – if these ramp up as we anticipate, SPS revenue could double to more than US$50m in FY20e. If we add this to the existing CES contract base, Fluence is close to the revenue run-rate it needs to reach EBITDA break-even and cash g...
Fluence has raised A$36m (US$25m) through a placement of 81.8m shares at A$0.44 (a 12% discount to the closing price on Wednesday, 16 October). The company indicates the proceeds will fund the expansion of MABR capacity in China, growth into new (unspecified) geographic territories and will ensure it has sufficient capital on hand to meet CES (Custom Engineering Solutions) project guarantees. The raise has been supported by existing shareholders plus new Australian institutional investors.
Fluence has raised A$36m (US$25m) through a placement of 81.8m shares at A$0.44 (a 12% discount to the closing price on Wednesday, 16 October). The company indicates the proceeds will fund the expansion of MABR capacity in China, growth into new (unspecified) geographic territories and will ensure it has sufficient capital on hand to meet CES (Custom Engineering Solutions) project guarantees. The raise has been supported by existing shareholders plus new Australian institutional investors.
Fluence has signed a Memorandum of Understanding (MoU) to deliver over 250 Aspiral wastewater treatment units to a Chinese partner (Kaitian) and is establishing a local final assembly facility in Yiyang to meet this demand. This is its second high-volume contract in China and, following the recent SUBRE order, provides evidence of both the significant potential of this market and the progress Fluence is making. With a market cap of c US$150m, the full value of this opportunity is not currently ...
Following a record Q1, Fluence had a quieter Q2. A shortfall in new recurring deals and delays at San Quintin lead us to trim our forecasts. Nevertheless, we see a recovery in H2. With a record backlog, healthy prospects in China and the Ivory Coast project set to ramp, growth should rebound. The commitment to reach positive EBITDA in Q4 remains intact.
Following an extremely healthy Q1 for bookings (see Exceptional bookings growth), Fluence has announced another large custom engineered solution (CES) win. We make no changes to our estimates at this point, but the win should improve confidence that FY19 figures are achievable.
In a typically quiet quarter, Fluence enjoyed exceptional bookings. Aside from the US$188m CES (custom engineered solution) win in Ivory Coast, it also secured a $20m contract in Egypt and a further ITEST deal. Revenue rose 20% y-o-y and the gross cash balance was $24m ($14.7m outflow). Forecasting CES deals are hard and we trim FY19 sales by 10% to reflect a more cautious view on further big wins boosting FY19 numbers, but the company still expects EBITDA breakeven during Q419 and FY20 estimate...
A director at Fluence Corporation Limited maiden bought 500,000 shares at 0.360AUD and the significance rating of the trade was 61/100. 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 l...
The award of a €165m (US$188m) contract to provide water treatment to Abidjan, the largest city in Ivory Coast, is transformative in our view. This turnkey project will supply 150,000m3/day of water to 4.7 million people and include a range of treatment solutions. The win establishes Fluence as a supplier of large, innovative solutions and leads us to double our FY20 adjusted EPS forecast to US$c3.8. Despite organic revenue growth in FY19 and FY20 of well over 50%, the share price implies an F...
An impressive Q4 (73% y-o-y organic revenue growth) saw Fluence deliver on its FY18 target. Demand for its higher-margin smart product solution (SPS) remains strong with revenues expected to ‘at least’ double y-o-y in FY19. Its target of EBITDA breakeven by Q419 is reaffirmed and our profit forecasts are largely unchanged. With $38m of net cash and growing evidence of execution, we believe investors can now focus on the long-term growth story.
Fluence has signed an agreement with an undisclosed US-based finance company for a $50m non-recourse debt facility specifically to fund the upfront build costs of custom projects. This pre-packaged source of funding accelerates its ability to secure and deliver these projects. On top of $23m net equity proceeds raised last month, it provides an additional source of financing for its expected growth.
Q3 saw Fluence delivering on expectations. It signed its first multiproduct Aspiral deal in China ($45m), reported in-line revenue (up 140% y-o-y) and held FY18 gross profit guidance. An equity offer raising c $23m (net) should address any funding concerns. Capital raising aside, our forecasts are unchanged; the company still has to deliver a strong Q4, but following the China deal, confidence in the long-term story should be growing.
Fluence has secured a deal for its Aspiral product in China that should generate at least US$45m in revenue over the next three years. This deal is significant as, aside from the financial benefit, it demonstrates the size of the opportunity for Aspiral in China. Greater investor confidence in Fluence’s prospects here could drive a sharp re-rating of the shares, in our view. We make no changes to numbers now but will review estimates after the Q3 trading statement.
Fluence’s Q2 statement confirms FY18 guidance and highlights encouraging progress in China. The company still has a lot to deliver in H218, but the fundamentals of its market (the supply of distributed water/wastewater treatment) look very attractive, in our view.
MELBOURNE, Australia & NEW YORK--(BUSINESS WIRE)-- Fluence Corporation Limited (ASX:FLC) announced today that it has secured a contract from the Changping District government for the purchase of an Aspiral™ S1 smart-packaged MABR-based solution (formerly known as C-MABR) for use in a municipal wastewater treatment plant. The plant will be located in Changping District, Municipality of Beijing, Hebei province, China. This is the first contract won through Fluence’s new local partners Glory Land (Beijing) Science & Techn...
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