TEL AVIV, Israel, Nov. 29, 2018
Significant increases in electricity and green certificate prices in Poland increased company revenue; all projects in development are progressing according to schedule; target price has risen to NIS 5.32.
TEL AVIV, Israel, Nov. 29, 2018 /PRNewswire/ -- The TASE analysis project was launched in 2016 in order to raise investors' awareness about TASE listed technology and life-science companies and the markets in which these companies operate, thus creating appropriate pricing and increasing the exposure of investors from Israel and abroad. Its goal is to encourage investments in these companies by improving understanding of these industries and companies in the market.
In order to maintain professional, independent and unbiased analysis, the companies signed an agreement with the TASE to receive the analysis services for an obligatory period of two years. The companies cannot withdraw from the project during this period. The analysis is funded by the companies surveyed with funding from the Chief Scientist and the TASE.
Summary of Highlights
Regulation of and demand for electricity and green energy, especially in Poland, supports the companies continued growth; 70% of company revenues are from the Polish market
Energix published its quarterly report on November 19, 2018 with the following highlights:
An increase in revenues in light of increases in electricity and green certificate prices and as a result of a price hedge implemented by the company; as a result of this the company updated its forecasted revenues (added an additional NIS 8M in 2018 compared to the forecast of the last quarter and NIS 24M if compared to the original forecast for the year) and now forecasts a total of NIS 238-246M in 2019.
In light of the company's progress, the increase in electricity and green certificate prices, and thus the increased revenues expected in the beginning of 2019 we are updating our valuation of Energix to be NIS 2,011M / USD 544M (our last valuation amounted to NIS 1,736 / USD 486.2) corresponding to an updated target price ranging between 5.02 and 5.65 and on average NIS 5.32.
For a detailed breakdown of our valuation methodology for the Company please refer to our Initiation of Coverage report of 25 June 2017.
About the Company - Energix Renewable Energies Ltd. (hereinafter "Energix" or "the Company") is a renewable energy company, currently active in the field of Solar Photovoltaic (PV) and Wind Energies. As one of the largest Israeli Independent Power Producers (IPPs), the company initiates, develops, constructs and owns long-term renewable energy projects. Once it has secured production rights through government tenders, Energix sells the generated electricity to utility companies who distribute electricity to end users. Energix shares have traded on the Tel Aviv Stock Exchange since 2011.
Read the full report here.
About Frost & Sullivan
Frost & Sullivan, the Growth Partnership Company, works in collaboration with clients to leverage visionary innovation that addresses the global challenges and related growth opportunities that will make or break today's market participants. For more than 50 years, we have been developing growth strategies for the global 1000, emerging businesses, the public sector and the investment community. Contact us: Start the discussion