Original-Research: MPC Energy Solutions N.V. (von NuWays AG): BUY

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Original-Research: MPC Energy Solutions N.V. - from NuWays AG

02.05.2025 / 09:00 CET/CEST

Dissemination of a Research, transmitted by EQS News - a service of EQS

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invitation to conclude certain stock exchange transactions.

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Classification of NuWays AG to MPC Energy Solutions N.V.

Company Name: MPC Energy Solutions N.V.

ISIN: NL0015268814

Reason for the research: Update

Recommendation: BUY

from: 02.05.2025

Target price: NOK 15.50

Target price on sight of: 12 months

Last rating change:

Analyst: Christian Sandherr

Good start into the year: Q1 EBIT turns positive

Q1 proportionate energy output increased slightly by 2% yoy to 29 GWh

despite the sale of its CHP plant in Puerto Rico at the end of last year

(6-7 GWh impact). Mexico and El Salvaor on the other hand show strong

operational developments, overcompensating for that. As a result,

proportionate group sales in Q1 stood at $ 2.9m ($ .1m yoy).

The goup's consolidated EBIT turned positive at $ 0.1m, a significant

improvement compared to last year's $ 0.4m loss. This is mainly due to

cost-cutting measures (e.g. reduced headcount) bearing fruit.

Sale of Colombian assets progressing. As highlighted during the Q4 earnings

call, MPCES initiated the sales process of its two Colombian operational

projects (39MW) due to the challenging situation in that region, triggering

significant expenses to guarantee the safety of employees. Conservatively

assuming a certain discount to the book value ($ 17m), MPCES should be able

to receive some $ 15m, eNuW.

Reduced development efforts. With the sale of a Colombian development

project in Q1, the pipeline now consists of two projects with a total

capacity of 90MW. At the current development projects, MPCES should be able

to receive roughly $ 40k per MW.

Guatemala project to begin producing electricity in July. In February 2024,

MPCES begun construction of its 66MW PV project in Guatemala. The mechanical

completion is expected to take place in May, followed by the grid connection

at the end of June. While the company initially planned to sell a 49% stake

to a co-investor, management decided to keep full ownership of the project,

which is expected to generate annualized sales of $ 8m with an 80% EBITDA

margin, roughly doubling its production portfolio (in terms of GWh).

No liquidity concerns. Thanks to the pending inflows from the sold

development project and the two Colombian assets that are expected to be

sold this year, MPCES should be well capitalized. In fact, management

confirmed to plans to redistribute cash to shareholders once it becomes

available.

We confirm our BUY rating with an unchanged NOK 15.5 PT (old: NOK 14) based

on sum-of-the-parts (SOTP) valuation, separately accounting for the value of

its current IPP portfolio (NPV) and its development backlog (multiple). This

is largely inline with a 20% discount to the projects' book values.

You can download the research here: http://www.more-ir.de/d/32404.pdf

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Contact for questions:

NuWays AG - Equity Research

Web: www.nuways-ag.com

Email: research@nuways-ag.com

LinkedIn: https://www.linkedin.com/company/nuwaysag

Adresse: Mittelweg 16-17, 20148 Hamburg, Germany

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Diese Meldung ist keine Anlageberatung oder Aufforderung zum Abschluss

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Offenlegung möglicher Interessenskonflikte nach § 85 WpHG beim oben

analysierten Unternehmen befinden sich in der vollständigen Analyse.

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2128644 02.05.2025 CET/CEST

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