Märkte & Kurse

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Original-Research: Cloudberry Clean Energy ASA - from NuWays AG

02.09.2024 / 09:01 CET/CEST
Dissemination of a Research, transmitted by EQS News - a service of EQS
Group AG.
The issuer is solely responsible for the content of this research. The
result of this research does not constitute investment advice or an
invitation to conclude certain stock exchange transactions.

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Classification of NuWays AG to Cloudberry Clean Energy ASA

     Company Name:                Cloudberry Clean Energy ASA
     ISIN:                        NO0010876642

     Reason for the research:     Update
     Recommendation:              Buy
     from:                        02.09.2024
     Target price:                NOK 19.00
     Target price on sight of:    12 months
     Last rating change:
     Analyst:                     Christian Sandherr

Forming a new digital player in the power market

Topic: Cloudberry (alongside Elmera and Småkraft) is investing in
Kraftanmelding, a leading provider of digitalization solutions for
run-of-river power production. Cloudberry's shares remain undervalued.

Kraftanmelding focuses on automating tasks within the hydro industry to
improve an asset's return. This includes automatically generating
electricity certificates and guaranteeing their origin, an automated power
trading system, data collection for settlement management and minimum water
flow logging.

As part of the deal, Cloudberry will transfer Captiva's digital business
(data-driven analysis and improvement of assets) to Kraftanmelding, while
Elmera and Småkraft provide NOK 20m of equity to fund additional growth
(larger customer groups and international expansion). With this,
Kraftanmelding will be owned by Elmera (34%), Cloudberry (32%), Småkraft
(8%) and the founders and employees (27%).

We regard this as a sensible move, as it puts Cloudberry at the forefront of
the digital transformation of the industry and provides the company with
plenty of data to further improve its own asset.

We confirm our BUY rating with an unchanged NOK 19 PT based on SOTP as the
company remains attractively priced despite the recent strong share price
development. Why to own the stock:

  * Undemanding valuation. At around NOK 13/share, Cloudberry continues to
    trade below its own book value, which stands at roughly NOK 16.5/share.
    At the same time, the company offers a strong balance sheet with
    relatively low debt levels and some NOK 946m in cash.

  * Plenty of hidden value within the balance sheet. At the end of June this
    year and last, the company divested several hydro assets. Importantly,
    the achieved valuations stood at 2.3x and 2x of the assets' book values.
    Cloudberry still owns 22 further hydro assets. Taking into account the
    remaining small scale assets (6 operations with 44 GWh energy
    production, 4.8% of the current portfolio) and applying similar
    multiples, the company could generate roughly NOK 390m.

  * Accelerating portfolio growth. The current 277 MW production portfolio
    is seen to grow to ~500 MW by mid 2026e. While 19 MW are already under
    construction, a final investment decision on its 140 MW PV project
    should be made as early as this year. The development backlog comprises
    additional 733 MW, which could also be sold. If sold, the dev. backlog
    alone could be worth ~NOK 550m, eNuW.



You can download the research here: http://www.more-ir.de/d/30683.pdf
For additional information visit our website: www.nuways-ag.com/research

Contact for questions:
NuWays AG - Equity Research
Web: www.nuways-ag.com
Email: research@nuways-ag.com
LinkedIn: https://www.linkedin.com/company/nuwaysag
Adresse: Mittelweg 16-17, 20148 Hamburg, Germany
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Diese Meldung ist keine Anlageberatung oder Aufforderung zum Abschluss
bestimmter Börsengeschäfte.
Offenlegung möglicher Interessenskonflikte nach § 85 WpHG beim oben
analysierten Unternehmen befinden sich in der vollständigen Analyse.
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1979091 02.09.2024 CET/CEST

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