EQTEC - Update

Commercial progress advancing and many further opportunities in the pipeline in what is now a “future proof” sector

EQTEC provides engineering and design services and sells its EQTEC Advanced Gasification Technology to waste-to-energy operators and enterprise partners. The company works together with multiple parties involved in W2E projects including the developers, waste owners, building contractors and funders with a view to ultimately providing its advanced gasification technology, associated engineering & design services and O&M services.

  • Working with multiple partners to turn waste into energy

    EQTEC’s business model is focused upon sourcing and providing assistance to clients in developing waste elimination projects, typically projects that have a local supply of waste which can be disposed of and turned into energy. The company works together with multiple partners involved in projects, including developers, waste owners, EPC contractors and financiers, with a view to ultimately providing its advanced gasification technology and associated engineering and design services.

  • Focussed on three key verticals

    Last year, EQTEC set out a strategy to focus its efforts on the following three verticals of the waste-to-energy sector: Recovery of Clean Energy from Biomass; Elimination of Waste Streams in Agri-food and Industrial Sectors; and Elimination of Waste Streams – Municipal Solid Waste (MSW) and Refuse Derived Fuel (RDF).

  • Rapid increase in project pipeline

    Over the past year or so EQTEC has announced a number of developments and contract wins across its three key verticals. These include; the financial close of the North Fork biomass project in California; an agreement for the development of a proposed 1.18 MW net biomass gasification power plant project in Gratens, France; and an MoU for the engineering design and installation of the first advanced gasification plant in Greece.

  • Peer based valuation suggests upside of more than 400%

    EQTEC now has a substantial pipeline of projects which should begin and be completed over the coming two/three years. Using a peer derived EV/EBITDA multiple we set a target price of 0.78p per share, implying 403% upside from the current price.

  • RISK WARNING & DISCLAIMER

    EQTEC is a research client of Align Research. Align Research and a director of Align Research own shares in EQTEC. Full details of our Company & Personal Account Dealing Policy can be found on our website http://www.alignresearch.co.uk/legal/ For full disclaimer information please refer to the last page of the full document. This investment may not be suitable for your personal circumstances. If you are in any doubt as to its suitability you should seek professional advice. This note does not constitute advice and your capital is at risk. This is a marketing communication and cannot be considered independent research.

Table: financial overview
Year to Dec 2020E 2021E 2022E
Revenues (€m) 14.39 41.53 31.95
EBITDA (€m) 2.42 8.23 6.42
Pre-tax (€m) (0.04) 5.39 3.28
Source: Align Research

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