EcoUp - products and services for low-carbon construction

[Tommi_Saarinen]

EcoUp Oyj:n ylimääräisen yhtiökokouksen päätökset ja hallituksen päätös...

EcoUp’s directed share issue is proceeding according to previous plans. We commented on the issue in connection with the previous announcement here.

@Sijoittaja-alokas

EcoUp announced on Friday afternoon that it is considering a directed share issue of approximately EUR 3 million to strengthen the company’s capital structure and finance growth. The company’s major shareholders have committed to subscribing to a significant portion of the issue. We are not particularly surprised by the share issue plan, as the company’s balance sheet position has tightened following weak earnings development. The issue reduces the company’s financial risk but, if implemented, will cause a significant dilution effect for existing shareholders. We will take the planned financing arrangement into account in our forecasts at the latest after its implementation.

EcoUp aikoo kerätä 3 MEUR omaa pääomaa suunnatulla annilla alkuvuodesta - Inderes

[Sijoittaja-alokas]

Here are Tommi’s comments on EcoUp’s share issue and its completion.

EcoUp announced yesterday that it has carried out the directed share issue it announced in December. The issue was fully subscribed, and the company raised gross proceeds of approximately 3 MEUR. The arrangement strengthens the company’s balance sheet and enables the continuation of growth investments in line with the strategy, but at the same time causes significant dilution for existing shareholders. We will update our view on the stock in the coming days, taking into account the new number of shares and the strengthened cash position. We previously commented on the share issue plans here.

EcoUpin suunnattu osakeanti toteutui suunnitelmien mukaisesti - Inderes

[Sijoittaja-alokas]

Here is a new company report on EcoUp from Tommi after the share issue.

EcoUp updated its financial targets in December and carried out a directed share issue in January. We added the share issue to our forecasts, and in addition, we lowered our forecasts for the coming years as the market developed more softly than expected and after reviewing our assumptions regarding the progress of the Swedish subsidiary’s profitability turnaround. Support for the valuation must be sought from 2028, and looking at that year, the stock’s upside potential is not sufficient to cover our required rate of return. Following the forecast changes, we lower our target price to EUR 1.4 and reiterate our Reduce recommendation.

EcoUp: Osakeanti ja hitaampi käänne ennusteisiin - Inderes

[Tommi_Saarinen]

EcoUp aloittaa yhteistyön betoniteollisuuden toimijan kanssa vauhdittaakseen...

Here are some initial thoughts on the cooperation with Rakennusbetoni- ja Elementti Oy announced by EcoUp today.

Additionally, I touched on market developments from EcoUp’s perspective in yesterday’s construction sector market review. The market for new construction of single-family houses seems to have stopped its plunge, but on the other hand, signs of a turnaround are scarce.

The business cycle review from the Single-family House Industry (Pientaloteollisuus PTT) from late January told the same story. The order backlog of the association’s member companies was 4% lower than a year ago.