Original-Research: MPC Energy Solutions (Von Nuways AG)

(MENAFN- EQS Group) Original-Research: MPC Energy Solutions - from NuWays AGClassification of NuWays AG to MPC Energy SolutionsCompany Name: MPC Energy SolutionsISIN: NL0015268814Reason for the research: InitiationRecommendation: KaufenTarget price: NOK 23.00Target price on sight of: 12 MonatenLast rating change: Analyst: Christian SandherrHere comes the sun // Initiate with BUY MPC Energy Solutions (MPCES) is ready for a virtuous growth cycle: Theintegrated IPP owns 144 MW (99 MW proportionate) of PV and CHP assets(incl. under construction) and has a 336 MW development backlog (225 MW ofmature projects). The regional focus of MPCES is Latin America and the Caribbean, which offerplenty of attractive growth prospects. Although boasting an impressiveoverall renewable energy share of 63%, certain nations, notably theCaribbean countries, find themselves trailing behind with a meagre averageof 8% but with targets of 50-100% during the next 10-20 years. This createda lot of pent-up demand: Until 2030, the regions need an incremental 50 GWof renewable assets to remain on the net-zero trajectory. Assets in these regions are in high demand due to attractive returns (>15%equity IRRs) on the back of high power/power purchase agreement (PPA)prices coupled with strong solar irradiation leading to high full loadhours and long-term PPAs with private corporates, private and state-ownedutilities. However, access to suitable assets remains one of the key bottlenecks inthe industry. By offering tailored energy solutions for each client with atechnology agnostic approach rather than trying to find clients for halfwaydeveloped projects, MPCES put itself at the forefront of the regions'transformation, since it is (1) able to de-risk its projects and (2) gainaccess to sufficient high-quality PPAs. Ready to kick-start a cycle of growth. While FY23 was a transition yearwith the departure of the former CEO and the resulting strategy overhaul(divestment of several projects and focus on co-investments to improveequity IRRs), the company's mid-term should be marked by strong growth' current proportionate production portfolio can generate annual salesof around $ 11.4m (eNuW). This is seen to strongly increase as MPCESexecutes its backlog. San Patricio alone (construction started at the endof Feb.) should contribute $ 4m additional sales annually. The remaining225 MW of mature development projects could boost annual proportionatesales to roughly $ 31m (eNuW, 51% ownership and $ 65 per MW/h). Withincremental EBIT margins north of 40%, the group's EBIT margin would hencesurpass 30% (not reflected in eNuW until the projects are underconstruction). Initiate with BUY and a NOK 23 PT. We value MPCES on a sum-of-the-parts(SOTP) valuation, separately accounting for the value of its current IPPportfolio (NPV) and its development backlog (multiple).You can download the research here:For additional information visit our websiteContact for questionsDie Analyse oder weiterführende Informationen zu dieser können Sie hier downloaden: NuWays AG - Equity ResearchWeb: Email: ...LinkedIn: Adresse: Mittelweg 16-17, 20148 Hamburg, Germany++++++++++Diese Meldung ist keine Anlageberatung oder Aufforderung zum Abschluss bestimmter Börsengeschäfte möglicher Interessenskonflikte nach § 85 WpHG beim oben analysierten Unternehmen befinden sich in der vollständigen Analyse.++++++++++-------------------transmitted by EQS Group AG.-------------------The issuer is solely responsible for the content of this research result of this research does not constitute investment adviceor an invitation to conclude certain stock exchange transactions.


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