Original-Research: A.H.T. Syngas Technology N.V. (von GBC AG): BUY

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Original-Research: A.H.T. Syngas Technology N.V. - from GBC AG

Classification of GBC AG to A.H.T. Syngas Technology N.V.

Company Name: A.H.T. Syngas Technology N.V.

ISIN: NL0010872388

Reason for the research: Research study (initial coverage)

Recommendation: BUY

Target price: 37,50 EUR

Target price on sight of: 31.12.2024

Last rating change:

Analyst: Marcel Schaffer, Cosmin Filker

- Growth strategy to become a multinational CleanTec and clean energy

providers

- Financial year 2023 successfully concluded with record sales, record

earnings and a promising backlog according to preliminary figures

AHT Syngas Technology N.V. (AHT) is a global company that develops

technologies for converting carbon-based fuels into synthesis gas. The

company focuses on the development, system integration and sale of

decentralized power plants and gas purification systems. AHT's range of

services includes, for example, compact/biomass power plants, hot gas

systems for purely industrial heat applications, clean gas systems for

decentralized power generation plants as well as project planning, project

management and maintenance services. The AHT plants are designed to convert

carbonaceous fuels such as biomass, wood, waste and coal into synthesis

gas. The synthesis gas can be used as a feedstock for various applications

such as power generation, heat generation and the production of chemicals

and fuels.

In recent financial years, AHT has further developed its technology and

made useful additions through acquisitions. With the acquisition of FHT

Hydrogen Separations GmbH, the production of hydrogen will also be an

integral part of AHT's plants in future. Know-how in the field of biomass

processing is pooled in the subsidiary aremtech GmbH. This will create the

basis for supplying the company's own plants and at the same time lay the

foundations for the future trade and sale of processed biogenic materials.

Thanks to aremtech's know-how and the addition of additives, a

standardized, CO2-neutral feedstock can be created from a mixture of waste

materials.

Thanks to this addition, AHT's technology covers the entire value chain of

plant operation, from the provision of input materials to the generation of

energy and heat. The proof of concept for AHT technology was achieved by

winning a major framework agreement to supply plants to a Japanese

customer. This is an important milestone for the company, especially as the

contract for the delivery of 20 plants comprises an order volume of around

EUR 160 million.

Parallel to this important milestone, AHT intends to fully exploit the

potential of its technology and also position itself as an electricity and

heat supplier (contracting). Revenues from the sale of plants would then be

supplemented by recurring revenues, which would also be accompanied by

particularly high profit margins. This is against the backdrop that the

added value remains in house, both for the input materials and for plant

planning and construction.

In addition to the expected increase in high-margin contracting sales,

AHT's profitability should also benefit from the supply chain, which is

increasingly geared towards series production. This is due to higher

purchase volumes of components, which can lead to economies of scale for

suppliers in terms of series production. Finally, new technologies such as

the production of green hydrogen from biomass or the carbonization of

liquid feedstock (HTC) are to be integrated into existing or new plants.

The positive effects of the growth strategy prepared and implemented in the

past financial years are already reflected in the preliminary figures for

2023. According to preliminary figures (HGB), AHT generated revenue of EUR

12.12 million, setting a new all-time revenue record. The new major order

resulting from the investments made led to a significant improvement in

earnings in line with the strong increase in sales. According to

preliminary figures, a clearly positive net profit of EUR 0.86 million

(previous year: EUR -0.42 million) was achieved, which is also a record

figure.

Based on the expected contracting sales and the existing framework

agreement, we anticipate a significant increase in sales and a gradual

improvement in profitability. Based on expected sales of EUR 77.15 million in

the 2028 financial year, the last estimated year of our detailed planning

period, the target EBITDA should amount to EUR 12.72 million. These plans do

not include any inorganic effects that would lead to a significant

acceleration in growth.

As part of the DCF valuation model, we have determined a target price of EUR

37.50. Based on the current share price of EUR 23.00, we assign a BUY rating.

You can download the research here:

http://www.more-ir.de/d/29729.pdf

Contact for questions

Offenlegung möglicher Interessenskonflikte nach § 85 WpHG und Art. 20 MAR Beim oben analysierten Unternehmen ist folgender möglicher Interessenkonflikt gegeben: (5a,5b,11); Einen Katalog möglicher Interessenkonflikte finden Sie unter:

https://www.gbc-ag.de/de/Offenlegung.htm

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Date and time of completion of the study (german version): 22.04.2024 (3:50 pm)

Date and time of the first dissemination of the study (german version): 23.04.2024 (10:30 am)

Date and time of completion of the study (english version): 13.05.2024 (4:45 pm)

Date and time of the first dissemination of the study (english version): 14.05.2024 (10:00 am)

-------------------transmitted by EQS Group AG.-------------------

The issuer is solely responsible for the content of this research.

The result of this research does not constitute investment advice

or an invitation to conclude certain stock exchange transactions.

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