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Analysis Clean Industry Solutions: Step-change in sales

Detta är en betald analys på uppdrag av Clean Industry Solutions Holding Europe utförd av Analysguiden

Growth accelerates
Operating income increased to MSEK 9 during Q4 which was 200% higher than Q4 2021. Current backlog and sales funnel indicate that the stepchange from the historically low level of sales will continue. The growth is driven by Clean Industry Solution Holdings’ subsidiary Industrial Solar. Its broader approach in the market with a higher share of PV (photovoltaic) creates more stable revenue streams. PV typically has shorter sales cycles compared to solutions built on its flagship technology – the Fresnel collector designed for industrial process heating.

EU Green Deal is positive for CISH
EU’s Green Deal Industrial Plan will be positive for CISH and especially the subsidiary Industrial Solar. In January this year the President of the European Commission, Ursula von der Leyen, announced the plan to make Europe the global cleantech market leader by simplifying EU state aid rules and through further provisions of funds. The plan aims to make Europe a central hub for clean tech and industrial innovation to meet the 2050 netzero goals. The plan has four focus areas: bureaucracy, financing, skills, and trade. Regulations for realizing energy projects with solutions such as wind, heat pumps, solar, clean hydrogen, storage, and others will be eased and financially supported.

CISH believes that the Green Deal Industrial Plan aligns with the mission of the company to provide clean and circular economy solutions. CEO Christian Zahler commented "We have the experience and expertise to help industries. Our technologies, such as the Fresnel Collector and our holistic approach, are paying off and we would be happy to deploy more systems sooner."

Eyes on existing and potential large orders
The relatively new PV-team consisting of around 5 people has had a good start in a booming market. Scalability and cost efficiency is secured in cooperation with subcontractors. The team is currently implementing a MSEK 9 solution at Losan Pharma and inquiries for even bigger installations are in the pipeline.

The solutions and ongoing projects within industrial process heating are very interesting. The current engineering studies and negotiations with one textile supplier to H&M, Arvind in India, a Unilever partner in Mexico and KEBE in Greece, stick out. These could all potentially lead to large orders. With KEBE, CISH has a letter of commitment with an order value of around MSEK 55. In October it was announced that the plan was to sign the final contract during Q1 2023.

The fair value in the DCF analysis remains at 3.00 SEK and corresponds to a market value at MSEK 75, just slightly above forecasted net sales in 2024. The low valuation offers an interesting opportunity in a sector that has a strong long term outlook.

Författare Analysguiden