Windar Photonics has received a follow-on order from one of its Chinese distributors for 300 WindEYE LiDAR systems. The first 50 are for delivery this month, the remaining 250 during H118. Management believes that there is potential for significant follow-on orders in H218. The financial details have not been disclosed, but we calculate that this order represents two to three times as many LiDAR systems as were shipped in either FY16 or H117. We will update our estimates shortly.
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Windar Photonics |
Transformational Chinese contract signed |
Milestone contract award |
Alternative energy |
6 December 2017 |
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Windar Photonics is a research client of Edison Investment Research Limited |
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Windar Photonics has received a follow-on order from one of its Chinese distributors for 300 WindEYE LiDAR systems. The first 50 are for delivery this month, the remaining 250 during H118. Management believes that there is potential for significant follow-on orders in H218. The financial details have not been disclosed, but we calculate that this order represents two to three times as many LiDAR systems as were shipped in either FY16 or H117. We will update our estimates shortly.
Year end |
Revenue (€m) |
EBITDA |
PBT* |
EPS* |
DPS |
P/E |
12/15 |
0.9 |
(2.8) |
(3.3) |
(0.08) |
0.0 |
N/A |
12/16 |
1.2 |
(2.4) |
(3.0) |
(0.07) |
0.0 |
N/A |
12/17e |
N/A |
N/A |
N/A |
N/A |
N/A |
N/A |
Note: *PBT and EPS are normalised, excluding amortisation of acquired intangibles, share-based payments.
The order is from one of the partners in China that signed up earlier this year after management decided to develop a distribution network rather than rely on a direct salesforce. It is the culmination of several months of on-site trials based on an initial delivery back in April 2017.These test LiDAR systems were integrated directly into the wind turbine control system for optimisation of yaw alignment (orientation with respect to incoming wind) to increase the average power generation of individual turbines and reduce damaging loads, thus extending turbine life span. The partner worked closely with several Chinese independent power providers (IPPs) during the trial. The 300 LiDAR units that were recently ordered will be sold on to local IPPs for installation on existing wind turbine generators.
This volume order is not only the largest one that Windar has received so far, but is, according to management, the largest number of LiDAR units ever ordered in the history of the wind energy industry. It shows that Windar’s proposition of developing a LiDAR system that is sufficiently low cost to be integrated into an individual wind turbine, directly controlling the orientation of that turbine, has become a commercial reality.
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Disclaimer
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Research: Real Estate
Custodian REIT (CREI) continued to grow its asset base, income earnings, and NAV per share in H118, with a well-controlled cost base. NAV and share price total returns were 4.2% and 5.3%, respectively. We have adjusted our estimates, primarily for property acquisitions and equity issuance since the first quarter, with a positive full year impact on forecast FY19 EPRA EPS (+6.0%) and DPS (+0.8%). Management’s focus is on secure income, to deliver the earnings to cover a sustainable long-term growth in dividends and generate less volatile returns. We believe the 9% premium to FY18e NAV is justified by the conservative gearing and one of the highest dividend yields in the sector.