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Original-Research: A.H.T. Syngas Technology N.V. - from GBC AG
Classification of GBC AG to A.H.T. Syngas Technology N.V.
Company Name: A.H.T. Syngas Technology N.V.
ISIN: NL0010872388
Reason for the research: Research study (initial coverage)
Recommendation: BUY
Target price: 37,50 EUR
Target price on sight of: 31.12.2024
Last rating change:
Analyst: Marcel Schaffer, Cosmin Filker
- Growth strategy to become a multinational CleanTec and clean energy
providers
- Financial year 2023 successfully concluded with record sales, record
earnings and a promising backlog according to preliminary figures
AHT Syngas Technology N.V. (AHT) is a global company that develops
technologies for converting carbon-based fuels into synthesis gas. The
company focuses on the development, system integration and sale of
decentralized power plants and gas purification systems. AHT's range of
services includes, for example, compact/biomass power plants, hot gas
systems for purely industrial heat applications, clean gas systems for
decentralized power generation plants as well as project planning, project
management and maintenance services. The AHT plants are designed to convert
carbonaceous fuels such as biomass, wood, waste and coal into synthesis
gas. The synthesis gas can be used as a feedstock for various applications
such as power generation, heat generation and the production of chemicals
and fuels.
In recent financial years, AHT has further developed its technology and
made useful additions through acquisitions. With the acquisition of FHT
Hydrogen Separations GmbH, the production of hydrogen will also be an
integral part of AHT's plants in future. Know-how in the field of biomass
processing is pooled in the subsidiary aremtech GmbH. This will create the
basis for supplying the company's own plants and at the same time lay the
foundations for the future trade and sale of processed biogenic materials.
Thanks to aremtech's know-how and the addition of additives, a
standardized, CO2-neutral feedstock can be created from a mixture of waste
materials.
Thanks to this addition, AHT's technology covers the entire value chain of
plant operation, from the provision of input materials to the generation of
energy and heat. The proof of concept for AHT technology was achieved by
winning a major framework agreement to supply plants to a Japanese
customer. This is an important milestone for the company, especially as the
contract for the delivery of 20 plants comprises an order volume of around
EUR 160 million.
Parallel to this important milestone, AHT intends to fully exploit the
potential of its technology and also position itself as an electricity and
heat supplier (contracting). Revenues from the sale of plants would then be
supplemented by recurring revenues, which would also be accompanied by
particularly high profit margins. This is against the backdrop that the
added value remains in house, both for the input materials and for plant
planning and construction.
In addition to the expected increase in high-margin contracting sales,
AHT's profitability should also benefit from the supply chain, which is
increasingly geared towards series production. This is due to higher
purchase volumes of components, which can lead to economies of scale for
suppliers in terms of series production. Finally, new technologies such as
the production of green hydrogen from biomass or the carbonization of
liquid feedstock (HTC) are to be integrated into existing or new plants.
The positive effects of the growth strategy prepared and implemented in the
past financial years are already reflected in the preliminary figures for
2023. According to preliminary figures (HGB), AHT generated revenue of EUR
12.12 million, setting a new all-time revenue record. The new major order
resulting from the investments made led to a significant improvement in
earnings in line with the strong increase in sales. According to
preliminary figures, a clearly positive net profit of EUR 0.86 million
(previous year: EUR -0.42 million) was achieved, which is also a record
figure.
Based on the expected contracting sales and the existing framework
agreement, we anticipate a significant increase in sales and a gradual
improvement in profitability. Based on expected sales of EUR 77.15 million in
the 2028 financial year, the last estimated year of our detailed planning
period, the target EBITDA should amount to EUR 12.72 million. These plans do
not include any inorganic effects that would lead to a significant
acceleration in growth.
As part of the DCF valuation model, we have determined a target price of EUR
37.50. Based on the current share price of EUR 23.00, we assign a BUY rating.
You can download the research here:
http://www.more-ir.de/d/29729.pdf
Contact for questions
Offenlegung möglicher Interessenskonflikte nach § 85 WpHG und Art. 20 MAR Beim oben analysierten Unternehmen ist folgender möglicher Interessenkonflikt gegeben: (5a,5b,11); Einen Katalog möglicher Interessenkonflikte finden Sie unter:
https://www.gbc-ag.de/de/Offenlegung.htm
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Date and time of completion of the study (german version): 22.04.2024 (3:50 pm)
Date and time of the first dissemination of the study (german version): 23.04.2024 (10:30 am)
Date and time of completion of the study (english version): 13.05.2024 (4:45 pm)
Date and time of the first dissemination of the study (english version): 14.05.2024 (10:00 am)
-------------------transmitted by EQS Group AG.-------------------
The issuer is solely responsible for the content of this research.
The result of this research does not constitute investment advice
or an invitation to conclude certain stock exchange transactions.
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