ClearVue Technologies Limited

 
ClearVue PV IGU Product Receives UL Certification:ClearVue Technologies Limited (ASX: CPV) is an Australian tech entity, which functions in the Building Integrated Photovoltaic segment, involving the utilisation of solar technology into the surfaces of premises. As on 28 November 2019, the company’s market capitalisation stands at $18.34 million, with 111.15 million outstanding shares.
 
UL Certification Received: CPV recently announced that its ClearVue PV IGU product received UL 61730 certification for sales of the ClearVue solar PV IGU in the United States of America and other international markets. The test has met all the necessary conditions for UL 61730 Certification and is intended for electrical safety, product performance and quality control in manufacturing.
 
Recent Agreements: Recently, CPV has signed an OEM supply Agreement with BeyondPV for support on ongoing research and development and product improvement of the ClearVue IGU and smart façade products. On 14 October 2019, CPV and Roots entered into a collaboration agreement to target the growing greenhouse market, including the creation of a world-first demonstration greenhouse in Israel.As per the terms of the deal, both the companies will jointly delve into prospects to leverage sales and business of each other’s technologies networks and increase operating synergies. Further, the company also inked an agreement with Attefallshus AB, a Swedish micro-home maker. Both the companies came closer with the plan to integrate ClearVue PV solar window products into Attefallshus’ mini-homes and other projects. The company also inked a deal with CSME Power Systems Pte Ltd to create a Singapore-based operating entity, ClearVue Asia Pte Ltd. to support its entry into the South East Asian Market.
 
Cash flows:Cash balance of the company as at 30 September 2019 stood at around A$1.118 million. Net cash used in operating activities for the quarter ended 30 September 2019, came in at A$316K.  Moreover, the company is expecting net cash outflow for the next quarter to be A$1.224 million, after making major payments for staff costs and administration, legal and corporate costs of A$0.232 million and A$0.130 million, respectively.
 

 
Stock Recommendation:As per ASX, the company’s stock is trading below the average of its 52-weeks trading range of $0.110 - $0.387. Over a period of one year, the stock has reported negative returns of 40%. The business has attracted further growth opportunities after the ClearVue PV-IGU Product received clearance for sale into the USA and other global territories. Considering the above factors, we give a “Hold” recommendation on the stock at the current market price of $0.185, up 12.121% on account of the announcement for grant of UL certification to the ClearVue IGU Product, as on 28 November 2019.
 

NRW Holdings Limited

 
Trading Halt:  NRW Holdings Limited (ASX: NWH) is a diversified provider of contract services to the infrastructure and resources sectors in Australia. The market capitalisation of the company stood at ~$1.07 Bn as on 28 November 2019. The securities of the company have been placed in a trading halt at the request of NWH, on account of a pending announcement. Securities will remain on a trading halt until the earlier of the commencement of normal trading on 2 December 2019 or when the announcement is released to the market.
 
Recent Capital Raising to Enhance Balance Sheet Flexibility:NWH recently announced to acquire the entire equity shares of BGC Contracting for $116.4 million and an implied enterprise value of $310 million. The acquisition is aimed at diversification of NRW’s business across Australia. In the recent presentation released on ASX, the company discussed about the performance of New NWH, i.e., expected synergistic performance of NWH and BGC, post-acquisition. NRW Holdings Limited recently launched a capital raising through a fully underwritten institutional share placement worth $120 million. Net proceeds from the offering will be used to fund the Acquisition of BGC Contracting and general working capital purposes. Pro forma FY19 revenue of New NRW came in at $2.0 billion and EBITDA stood at $199 million. Pro forma cash balance for FY19 came in at $79 million.
 

 
What to Expect:The company’s New NRW order book is expected to be roughly $4.0 billion. Secured order book scheduled for delivery in FY20 is expected to be ~$2.2 billion. FY20 combined revenue is expected to be $2.4 billion.
 
Stock Recommendation: The stock of NWH has witnessed a rise of 19.41% in the past one month. Over a period of six months, the stock reported negative returns of 2.75%. As per ASX, the stock has a PE multiple of 2.830x and an annual dividend yield of 1.41%. Taking into consideration the expected synergistic benefits out of New NRW, we advise investors to closely watch the stock at the current market price of $2.830 as on 28 November 2019.

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