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Dolfines

CR
Bloomberg   ALDOL FP
Engineering-Heavy Constr.  /  France  Web Site   |   Investors Relation
Capital increase to invest in renewables
Target
Upside 101%
Price (€) 0.07
Market Cap (€M) 1.32
Perf. 1W: 25.3%
Perf. 1M: -11.2%
Perf. 3M: -76.0%
Perf Ytd: -79.8%
10 day relative perf. to stoxx600: 2.00%
20 day relative perf. to stoxx600: -8.50%
Target Change28/09/2022

Costly financing cuts the target price

Change in Target Price€ 0.14 vs 0.40-66.0%

In the aftermath of last week's developments on equity line financing, we have updated our model. The massive dilution resulted in a 3x increase in the number of outstanding shares. We are expecting the financing woes to continue into next year, and have hence downgraded our target price.



Change in EPS2022 : € -0.01 vs -0.02ns
2023 : € -0.01 vs -0.03ns

The dilution as a result of the conversion of the bonds (NEGMA OCABSA) into shares had a significant impact on our EPS forecast as the conversion created 70.8 million shares.



Change in NAV€ 0.27 vs 0.83-67.2%

The downgrade in the NAV is also explained by the increase in the number of outstanding shares. We are not expecting a very immediate recovery in NAV.



Change in DCF€ 0.22 vs 0.66-67.3%

The downward change in DCF is also explained by the massive dilution. However, for FY2023, our forecast takes into account the assumption of the sale of a floater technology. This could give a significant boost to next year's cash flow.



Updates

28 Sep 22 Target Change
Costly financing cuts the target price

28 Jul 22 Earnings/sales releases
H1: Growth in both segments

09 Jun 22 Strategic Plan
Development continues in renewables

03 May 22 Earnings/sales releases
FY21: recap as investments accelerate in rene...

31 Mar 22 Other news/comments
Strong start of the year

11 Jan 22 Other news/comments
Prequalified in Saudi Arabia for rig inspection

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