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Nanoco has announced via RNS Reach a collaboration and joint development agreement with Kyulux to co-develop next generation display technologies. The aim of the collaboration is to combine Nanoco’s cadmium free quantum dots with Kyulux’s next generation OLED technology. The goal is to create supercharged hybrid OLED/Quantum dot devices able to emit greater amounts of light, which are required for the future generation of QLED/OLED televisions.
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Nanoco Group |
Next generation display collaboration |
Collaboration agreement |
Tech hardware & equipment |
22 May 2017 |
Share price performance
Business description
Analyst
Nanoco Group is a research client of Edison Investment Research Limited |
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Nanoco has announced via RNS Reach a collaboration and joint development agreement with Kyulux to co-develop next generation display technologies. The aim of the collaboration is to combine Nanoco’s cadmium free quantum dots with Kyulux’s next generation OLED technology. The goal is to create supercharged hybrid OLED/Quantum dot devices able to emit greater amounts of light, which are required for the future generation of QLED/OLED televisions.
Year |
Revenue (£m) |
PBT* |
EPS* |
DPS |
EV/sales |
P/E |
07/16 |
0.5 |
(12.3) |
(5.2) |
0.0 |
193.6 |
N/A |
07/17e |
1.6 |
(10.2) |
(4.3) |
0.0 |
56.5 |
N/A |
07/18e |
16.3 |
0.8 |
0.3 |
0.0 |
5.6 |
133.3 |
07/19e |
32.2 |
12.4 |
4.9 |
0.0 |
2.8 |
9.1 |
Note: *PBT and EPS are normalised and diluted, excluding intangible amortisation, exceptional items and share-based payments.
It takes time before such devices go on sale, but as we highlighted in our recent initiation, as the quantum dot display market develops it will become increasingly important that Nanoco demonstrates that it is well placed to supply into next generation display technology. Kyulux looks like a credible partner in this regard. The company was founded in 2015 to develop next generation materials for OLED displays and lighting. The company owns or has exclusive or co-exclusive rights to a large intellectual property portfolio covering TADF (Thermally Activated Delayed Fluorescence), a next generation OLED technology developed over the past seven years at Japanese Kyushu University and its industrial partners. According to Crunchbase, the company raised $15m in Series A funding and investors include Samsung Display, Japan Display and LG Display.
Clearly, the number one near-term priority for Nanoco and for investors is the company’s progress in securing its first volume orders. We have no new news in this regard but management still expects to secure the first orders in H2, with discussions continuing with nine OEMs regarding 14 projects. The collaboration is not expected to have any impact on costs in the near term, with members of Nanoco’s next generation technology development team being assigned to this project.
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Research: Financials
The drag on revenues from scarce market-wide primary equity issuance was substantially mitigated by progress in most other areas, reflecting the breadth and strength of the franchise that has been built. Numis is positive on H2 revenues and expects a pick-up in IPO activity. Less positively, cost pressure is greater than we had expected and prospectively from the implementation of MiFID II. Strategically, Numis looks well placed to navigate industry change, has successfully completed a major succession in leadership, and continues to offer absolute and relative value.