Hexagon Purus AS

[sillinkutoja]

Let’s start a thread for Purus, which was spun off from Hexagon Composite today. A comprehensive company presentation is available at:

https://cdn.hexagongroup.com/uploads/2020/11/Hexagon-Purus-Company-Presentation.pdf

It is the world’s leading manufacturer of “zero emission” hydrogen tanks and battery systems. It holds a leading position especially in Type 4 hydrogen tanks, with applications in hydrogen cars, trucks, buses, trains, ferries, refueling stations, etc.:

Locations:

Asia is expected to become the most important region for the company, and it has already secured significant orders, for example, this one:

In addition, a JV with CIMC ENRIC is expected to be announced by the end of the year:

Here are the company’s targets for 2025:

The company currently has ~229 million shares, giving it a market cap of 9500 MNOK ~ €900M at the current share price. Before listing, approximately 750 MNOK was raised in a private placement. Last twelve months’ revenue was 217 MNOK in Q3 and EBITDA was -113 MNOK, so the valuation is “somewhat high”. P/S>40. For next year, the target for revenue growth is over 50%.

Hexagon Composites will host a virtual Capital Markets Day on Monday, January 11, 2021, from 13:00 – 16:00 CET.

[Seinakadun_Keisari]

2025 revenue 5000M, 10% EBITDA = 500M.

Mcap 10000M / 500M = P/EBITDA 20.

The multiples are quite high and cannot withstand any operational disruptions.

[First_Timer]

Has the company announced regarding EBITDA that “double digits” means just over 10% and not, for example, 20%?

[sillinkutoja]

NewsWeb

[Seinakadun_Keisari]

No, I just used it as an example. If EBITDA is 20%, the numbers are of course much more bearable.

[Hereford_Picnic]

The P/S is still pretty high – for my taste.

[Seinakadun_Keisari]

I came across this picture and this thread somehow came to mind (although it would probably be more suitable for the SPAC thread), that is, the beauty & difficulty of forecasting. So, I fundamentally don’t trust any 5-year forecasts from such a relatively new company because just guiding for the next year is darn difficult.

[jaska7]

However, I don’t think Hexagon Purus should be considered a completely new company. Hexagon has a valid history in this segment, even before the spin-off.

A good reminder, though. Hexagon Purus’s goals are still goals, not forecasts, and they contain a great deal of uncertainty.

By the way, insiders are showing pretty good commitment with their purchases.

[Seinakadun_Keisari]

This is absolutely true, and under no circumstances am I comparing Puru to the scam-artist Benefon-Geosint.

Hydrogen needs to be stored, and there aren’t many players in that market, so there’s potential.

[Bender]

Now that Purus shares have finally appeared on Danske’s OST, I’d like to ask how you plan to weight your holdings between Purus and the parent company in the future? We know that Purus operates in the hottest sector right now, but is there any particular reason why one should own the parent company specifically? If Purus starts generating strong profits, how do you believe it will be reflected in the parent company’s stock price?

With the stock price fluctuating, I’ve long considered cashing in my profits, but it seems there’s some kind of love for the company in the air. In the end, I decided to stay on board because of this Purus spinoff.

EDIT:
A related article was published yesterday on the RedEye community side. It is not an analyst’s article, but a text written by a community member!

Link: Hexagon Purus – purfärsk vätgasnotering. | Redeye.se - Community (Archive)

[Juzaba]

Energia-alan teknologinen kehitys ja sijoitusmahdollisuudet

I added this here from the general thread as well

[sillinkutoja]

A picture of Nikola’s tank from Shareville:

[DayTraderXL]

“…the free float is extremely limited, estimated at only 15%.”
If this calculation is correct, this is extremely poor for liquidity going forward.

• edit: it occurs to me, has the mother company (emo) considered that if/when the price rises high (which it already is through the multipliers), money could be raised through offerings, which would also gradually increase the float through dilution. This would not necessarily be a good thing for small shareholders.

[jaska7]

I think this is exactly what they are looking for. I’m guessing Everfuel has the same idea.

[KONTI]

Have other Hexagon Composites owners received Purus shares in their portfolios? I don’t see them yet.
Shouldn’t I have received 0.15 shares for each Hexagon Composites share I own?

[kulta-Kalle]

{“content”:“I joined Nordnet. Dividends were paid, with a 25% withholding tax. 10% can be reclaimed from the Norwegian tax authority: as cash or shares??”}

[Juzaba]

Is there, for example, a link to that Norwegian tax form to apply for the 10% deduction?

[sillinkutoja]

I wonder if this is it: Dividends from Norwegian companies to foreign shareholders - The Norwegian Tax Administration

[kulta-Kalle]

https://www.skatteetaten.no/globalassets/skjema/alltid/1-refusjonsskjema-skatteavtale-person
They didn’t accept their own calculation. They demanded a calculation made and verified by a broker. NN charged 90,- /hour. The process took almost a year.

[uhrilahja]

I’ve been following the company for a few weeks, we’ll see how it goes.
In my opinion, the price rose too high compared to, for example, Nel Asa.
I would have expected a maximum of 27 NOK, but it immediately rose to 40 NOK.
If I wait a bit, it will probably drop?

Inspires confidence:
Broad-based company
Purus (Purus) management among shareholders
Parent company owners (e.g., Mitsui)
Good contract opportunities and contacts

Distrust:
Future economic trends
Risk of loss vs. current performance
Competition in the industry
Results

Conclusion: I’m not buying yet; I’m waiting for the price to drop a bit.
For/against?