Applied Graphene Materials (AGM) is the world leader in a key graphene technology.
The company, listed in the UK and US (LON: AGM / OTCQX: APGMF), appears well-positioned to take advantage of the rapidly transforming market, which is estimated to grow from c $100m in 2020 to exceed $1bn by 2032.
Hailed as a wonder material after its discovery in 2004, almost two decades of hype and little delivery have left graphene languishing in what Gartner calls “the trough of disillusionment”.
The depth and length of that trough has been driven by a technological challenge: the difficulty of incorporating graphene into materials so that its remarkable properties, which include its highly anti-corrosive properties, low permeability, as well as thermal and electrical conductivity, are transferred to the host material. AGM is solving that problem.
Here are seven things every investor should know about the business. For a deeper understanding take a look at Edison’s latest equity analysis.
#1: Moving graphene out of the lab and into the market
Graphene is immensely strong. It is also highly conductive of heat and electricity. AGM stands out from competitors as it supplies graphene in the form of ‘nanoplatelets’ – stacks of atom-thick layers of graphene, which are dispersed in liquid form. The company currently manufactures 45 standard graphene nanoplatelet (GNP) dispersions, for ease of customer use and can also adapt them to specific applications .
#2: Graphene’s commercial age clearly in sight
AGM’s strategy has focused on the global protective coatings market, a sector estimated to have been worth $13.8bn in 2021. Using AGM’s proprietary technology, the company’s customers have been able to incorporate graphene into their products at scale. Significant further growth potential exists for the coatings market and a host of new potential applications are on the horizon.
#3: AGM’s customers include major brands
AGM’s dispersions have, through its customer base, been used in protective industrial coatings for the UK’s Royal Mail, NASA, Network Rail, The Environment Agency, Lidl, Makro, Next and Wickes. In the UK consumer market AGM’s proprietary technology has widespread distribution in products sold via Amazon, Halfords and through direct customer websites.
#4: Meeting the needs of an expanding market
While AGM’s current revenues are largely from the coatings market and composites applications , the widening range of applications for the company’s products include car detailing products and specialty uses . Future applications potentially include battery and energy storage, polymers and composites. With 168 new opportunities in the sales pipeline, the company’s dispersions have potential to be incorporated into composite materials for commercial transport and the aerospace industry.
#5: Realising graphene’s green credentials
The growing adoption of graphene to assist decarbonisation and support the circular economy is already underway. Specific applications for AGM’s products may include composites, energy storage, concrete, and thermal management. AGM’s coatings are being used by England’s Environment Agency. Longer term opportunities include reinforcing pressure storage tanks for the transportation of hydrogen.
#6: The roadmap for sales
The company is focused on incorporating its products into more composite materials for the aviation and aerospace industries and targeting new and potentially significant applications for GNP in the construction, renewables and transport infrastructure sectors. Combining this with growing customer use of its products in the industrial coatings sector, a roadmap emerges.
#7: Global growth: ‘Primer-y’ futures and beyond
In late 2021, AGM launched its own-brand ‘Genable’-branded anti-corrosion primers. In 2022 it plans to scale up its production of dispersions from 10-20 tonnes annually, to around 100 tonnes per year. Having recently signed an exclusive distribution agreement with Indian partner, Imkemex, AGM’s commercial reach now extends directly into South Asia’s liquid resins, industrial protective coatings, composites and polymers sectors.
Edison offers investor relations, consulting and research publication services to paying clients. In accordance with Section 17(b) of the US Securities Act of 1933, please note the following important disclosures relating to Edison and its client relationship with Applied Graphene Materials (the “Company”).
Edison is engaged by the Company on a paid basis for investor relations services and this communication relates to those services. In connection with its investor relations engagement by the Company, Edison’s standard fees are $20,000 per month. Additional compensation may have accrued since the publication of this notice.
In addition, Edison is engaged by the Company to separately provide investment research coverage of its stock. In connection with its investment research coverage, Edison’s standard fees are £60,000 pa. Additional compensation may have accrued since the publication of this notice. No compensation relating to Edison’s investment research coverage is in any way contingent upon any positive opinions or conclusions in its research reports.
Edison’s investor relations services are independent of its research services, although Edison’s investor relations activities may utilize published Edison research as a source, among others, in connection with its activities. Edison’s investor relations and investment research personnel regularly, but separately, interact with the Company. All source materials relating to any investor relations materials of Edison should be considered to be directly attributable to information provided to Edison by the Company or the third-party sources noted in the communication. While third-party information used in the publication of Edison’s communications is typically compiled from publicly available sources that are believed to be accurate, complete and reliable, Edison does not guarantee the accuracy or completeness of information contained therein, and typically does not independently verify such information.
NOTE THAT ALL INVESTMENTS ARE SUBJECT TO INHERENT RISK AND ANY INVESTMENT IN THE COMPANY IS SUBJECT TO SIGNIFICANT RISKS THAT SHOULD BE ASSESSED BY ANY INVESTOR AND THEIR ADVISORS. PLEASE CLOSELY REVIEW THE COMPANY’S AVAILABLE PUBLIC DISCLOSURES, INCLUDING RISK FACTORS FOR SPECIFIC CONSIDERATION, WHICH ARE AVAILABLE THROUGH THE COMPANY’S INVESTOR RELATIONS WEBSITE, LINKED ABOVE.
This communication may include forward-looking statements that are subject to risks and uncertainties. Factors that could cause a company’s actual results and financial condition to differ from expectations include, without limitation: political uncertainty, changes in general economic conditions that adversely affect the level of demand for the company’s products or services, changes in international and domestic financial markets and in the competitive environment, and other factors relating to the foregoing. All forward-looking statements relating to this communication are qualified in their entirety by this cautionary statement.
Edison is neither a FINRA-registered broker-dealer nor an SEC-registered investment adviser and does not provide any investment advisory or banking services. Edison’s investment research reports are bona fide publications of general and regular circulation offering impersonal investment-related advice, not tailored to a specific investment portfolio or the needs of current and/or prospective subscribers. Edison does not offer or provide personal advice and its research provided is for informational purposes only. No mention of a particular security in any Edison communication constitutes a solicitation or recommendation to buy, sell or hold that or any security, or that any particular security, portfolio of securities, transaction or investment strategy is suitable for any specific person.
Edison has a restrictive policy relating to personal dealing and conflicts of interest. Edison does not conduct any investment business and, accordingly, does not itself hold any positions in the securities mentioned in this report. However, the respective directors, officers, employees and contractors of Edison may have a position in any or related securities mentioned in this report, subject to Edison’s policies on personal dealing and conflicts of interest.
Get access to the very latest content matched to your personal investment style.