November 17th, 2021 | 11:13 CET
ThyssenKrupp, Memiontec, Everfuel - Everything is connected
Table of contents:
The native Franconian has more than 20 years of stock exchange experience and a broadly diversified network.
He is passionate about analyzing a wide variety of business models and investigating new trends.
Global water consumption today is six times higher than it was 100 years ago. Population growth, economic boom and changing consumption patterns mean that water consumption rises by about 1% per year. Up to 90% of all wastewater worldwide is discharged untreated, polluting the environment and drinking water supplies. In addition, climate change is leading to less water and poorer water quality. On the other hand, sustainable water management has a positive effect on climate change. The World Water Report 2020, prepared by UNESCO on behalf of the United Nations, demonstrates this.
Decades of development
Singapore-based Memiontec has been developing complete water and wastewater management solutions in China, Indonesia, and Singapore for 20 years. Governmental institutions, such as the infrastructure developer Jakpro or the Indonesian national water authority PDAM, are among the Company's clientele, as are private companies from a wide range of Asian industries. In addition to the provision of total solutions, including maintenance contracts and the sale of modular and customized systems and equipment, the "Build-Own-Operate-Transfer" (BOOT) and "Transfer-Own-Operate-Transfer" (TOOT) segments are the yield drivers.
Through long-term partnerships with public and private partners, investments are made here in the maintenance of water treatment infrastructure. By selling purified water, Memiontec benefits here in two ways. In addition to revenue from operations, maintenance and services, the Singapore company generates revenue through the sale of purified water. As the concession contracts have an average term of 25 years, recurring income is thus secured in the long term.
25% Dividend and Records
Memiontec plans to establish further joint ventures of this kind in the coming months. In addition, the Company also intends to grow further inorganically. As of the end of July, a record order book of EUR 58.38 million was already reported, and Memiontec also secured an order worth a total of EUR 8.09 million from Singapore's Public Utilities Board. The topic of water treatment is likely to become increasingly important in the coming years, also on the stock market. In particular, Memiontec is expected to gain further importance in the Asian region. Due to the recurring income from the TOOT and BOOT projects, the dividend yield of 25% is outstanding. It should be maintained, at least in the coming years.
Leverage through hydrogen
Known as a diversified industrial group focused on steel processing, ThyssenKrupp is Germany's largest steel producer. The group was formed in 1999 from the merger of Friedrich Krupp AG Hoesch-Krupp with Thyssen AG. However, the Essen-based company is also focusing on renewable energies, and the news of a planned IPO in the hydrogen sector could significantly boost its share price.
ThyssenKrupp was looking into a listing of its Uhde Chlorine Engineers joint venture in the first quarter of 2022, Bloomberg news agency reported, citing people familiar with the situation. The listing could be worth up to EUR 5 billion. Bloomberg reported that the DAX-listed Company had initially planned to take Uhde, a joint venture with Italian industrial De Nora, public, through a special acquisition company before deciding to go the IPO route. Meanwhile, Baader Bank reiterated its Buy recommendation for ThyssenKrupp with a price target of EUR 16.
Still at the beginning
The advance praise for Everfuel, a spin-off of Norwegian hydrogen specialist Nel ASA, is high, with a stock market valuation of EUR 472.77 million. The focus is clearly on the future and the vision of making green hydrogen commercially available for zero-emission mobility across Europe. Based on the third-quarter figures, one can see that Everfuel is still in the early stages of commercializing the green hydrogen value chain in its target markets.
The Danes generated total revenue during the period, with hydrogen sales and other operating income, amounting to EUR 149 thousand in the third quarter of 2021. Direct hydrogen sales continued to be held back by the decline in COVID-19 traffic and reduced capacity. The opening of the new high-capacity refueling station in Copenhagen was postponed until the fourth quarter. EBITDA was negative at EUR 1.8 million, as expected.
It is high time to implement the climate targets that have been set. Global warming continues to progress and is leading to a dramatic shortage of water. Memiontec is countering this problem with its water treatment systems and is attractive in the long term. ThyssenKrupp has impact through its involvement in the hydrogen sector, Everfuel has yet to justify its high valuation.
Conflict of interest
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