RESEARCH: Energy Technologies, Emerging Cable And Wire Player

This story features ENERGY TECHNOLOGIES LIMITED. For more info SHARE ANALYSIS: EGY

Energy Technologies: Emerging cable and wire player 

By Pitt Street Research

Energy Technologies Limited ((EGY)) is a Sydney-based holding company having investments in three companies–Bambach Wires and Cable Pty Ltd, Dulhunty Poles Pty Ltd and Cogenic Pty Ltd. 

EGY has restructured Bambach’s operations by developing new high-margin products and recently it  acquired the assets of rival, Advance Cables.

This merger will provide operational efficiencies, expanded customer base and cross-selling opportunities.

Beneficiary of government defense spending

As part of the current budget, the Australian government is expected to spend ~$100bn in infrastructure projects and $200bn in Defence projects over the next 10 years. 

This is anticipated to accelerate growth opportunities across cable and wire market segments, such as defence, rail and road. These developments are likely to result in significant tailwinds across Bambach’s end-markets. 

EGY, with its vertical and horizontal expansion, through new low-cost modern production site and recapitalised balance sheet, is well equipped to take advantage of these opportunities.

Valuation range of $0.34–0.44 per share

We value EGY at $0.34 per share in our base case and $0.44 in our optimistic case scenario. 

Substantial value is expected to be generated after Advance Cable equipment and products are brought on stream. 

We believe the recapitalisation and operational efficiencies provide significant potential for re-rating.

Download the full report

Earlier today the report above was released by Pitt Street Research for which FNArena is a partner in distribution. The full report can be accessed here:

https://www.fnarena.com/index.php/pitt-street-research/EGY/

Find out why FNArena subscribers like the service so much: "Your Feedback (Thank You)" – Warning this story contains unashamedly positive feedback on the service provided.

FNArena is proud about its track record and past achievements: Ten Years On

Click to view our Glossary of Financial Terms