08. September 2021 | 12:28 CET
PuriflOH, Bayer, Philips - Innovations as yield drivers
Innovations enrich our everyday lives in many ways. The following companies have developed innovative solutions for health and climate in the broadest sense that help remedy important problems. The focus here is on water, a scarce resource, and air purification, which in times of Corona plays an increasingly important role. Which Company has the best opportunities?
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ISIN: PURIFLOH LTD | AU0000010548 , BAYER AG NA O.N. | DE000BAY0017 , KONINKL. PHILIPS EO -_20 | NL0000009538
PURIFLOH LIMITED - Innovator from Australia with worldwide patents
Founded in Australia with a US office in Detroit, PuriflOH has developed innovative and globally patented technology for cleaning air, water and surfaces in residential, commercial and industrial settings. According to the Company, PuriflOH has developed the first and only single solution to remove biological and chemical contaminants from the air through a two-step process.
IP licensing and partnership opportunities with air purification equipment manufacturers for residential, commercial and industrial applications are currently being explored. PuriflOH solutions are easily expandable and, therefore, scalable. In the past, the Company undertook significant research activities to develop the Free Radical Generator (FRG) technology. Now, the Company is leveraging the expertise of Somnio Group for further development.
Most recently, the Australians announced that commercialization activities would resume in Australia with two new products. These are the Air Conditioning Environmental Remediation Treatment (ACERT) and the Whole of Room Air Purifier (WRAP). In addition, PuriflOH built relationships with Aspen Medical, a healthcare solutions company, and Osmoflo, a water treatment company. Both partners play an important role in the future commercialization of the products.
The Company is still in the red, but this is characteristic of the relatively early stage. However, the loss was significantly reduced in the fiscal year. In addition, the Company secured an AUD 1 million financing facility from its major shareholder Dilato. Currently, PuriflOH is valued at AUD 53 million. As the products are commercialized, operating income will quickly materialize. Technology-savvy investors should put the shares on their watchlist.
BAYER AG - Turnaround in sight?
Climate change is again causing problems for agriculture this year. According to the recently published harvest report by the German Federal Ministry of Agriculture and statements by the farmers' association, heavy rain and hail will lead to a 2.7% decline in the grain harvest this year. Compared to the years 2015 to 2020, this is even a decrease of 4.8%. While too much water has caused problems in this country, water scarcity is a major problem globally. 70% of the world's water is consumed by agriculture. By the end of the decade, demand will already exceed supply. Water is thus becoming a crucial bottleneck factor.
Even if Bayer is more present in the media through its pharmaceuticals business and its cooperation with the Corona vaccine manufacturer CureVac, whose vaccine has not yet reached the marketing stage due to a lack of vaccine protection, Bayer's strong second pillar is agricultural chemistry. Here, the DAX-listed Company is focusing on targeted research activities to enable water-efficient agriculture. It also develops and markets products and technologies for improved wastewater treatment. Disappointing half-year figures and the lawsuits pending for some time in the USA in connection with carcinogenic fertilizers from the acquired competitor Monsanto led to a significant underperformance of around 10% against the DAX this year. 2021 will undoubtedly be a challenging year for the Group, but analysts expect things to pick up again significantly in 2022. The 2022 P/E ratio is 10, and the stock is currently interesting for anti-cyclical investors.
KONINKLIJKE PHILIPS NV - Established player with industry-standard valuation
Koninklijke Philips NV is a leading healthcare technology company with a wide range of products from healthy living and prevention to diagnosis, treatment and home care. The Group uses advanced technologies and sound clinical and consumer insights to provide integrated solutions. The Dutch-based Company is a leader in diagnostic imaging, image-guided therapy, patient monitoring and health informatics, and consumer health and home care. In Corona times, the air purifier sector has taken on greater importance. The Group is currently valued at around EUR 37 billion, 2 times projected 2022 sales and a 2022 P/E of 24.
The featured stocks focus on climate, health and water as a resource. In doing so, all companies focus on different areas. Bayer is one of the leading players in agricultural chemicals. After a year of losses, next year should see a return to gratifying profits - this makes the shares interesting. Anyone who wants to invest in a young technology company that offers a range of innovative solutions should take a closer look at the PuriflOH share.