• Mark Watson-Mitchell

CAP-XX Ltd – broker looking for 13p against 3.95p today

In this morning’s Pre-Close Trading Update the super capacitor and energy management systems group has clearly stated that its revenues and adjusted EBITDA for the year to end June will be up to market expectations.


We will have to wait until the end of September to see just how the sub-£20m capitalised group has performed.


The company is a world leader in the design and manufacture of thin, flat supercapacitors and energy management systems used in portable and small-scale electronic devices, and to an increasing extent, in larger applications such as automotive and renewable energy.


The unique feature of CAP-XX supercapacitors is their very high-power density and high energy storage capacity in a space-efficient prismatic package.


Those attributes are essential in power-hungry consumer and industrial electronics.

It also delivers similar benefits in automotive and other transportation applications.


Significant addition to its products list


The group, which has ultra-thin and high-power cylindrical supercapacitors already in its portfolio of products, late last month added lithium-ion capacitors (LIC’s), to its lists.


These hybrid supercapacitors can be used as stand-alone power sources or as load-levelling devices to increase the life of an existing primary energy source.


They can be used as a storage-power or short-term backup-power source for consumer devices, handheld scanners, data centres, military applications, smart metering, measuring equipment, and other applications requiring more energy at higher voltage in a compact size.


Anthony Kongats, CEO at CAP-XX stated that


"We aim to help design engineers with all their burst, micro energy harvesting and backup power needs, and Lithium-ion capacitors provide a valuable alternative energy solution for higher-voltage and increased-energy applications,"


"Combining the LICs with our existing ultra-thin prismatic and cylindrical supercapacitors forms an extensive product portfolio to meet those needs."


Growing demand


Upon issuing today’s Update, the group stated that it was encouraged by the outlook for FY23 and beyond and expects to see continued strong growth in product sales, which is being driven by increasing customer demand.


Broker’s ‘Buy’ note suggests 13p valuation


Analyst John-Marc Bunce, at the group’s broker Cenkos Securities, rates the shares as a Buy.


For the year to end June 2023 he is estimating a more than doubling of group revenues to A$11.3m (A$5.8m est), while the group will swing around convincingly into profits A$3.2m (A$1.9m loss est). That would earn some 0.6c in earnings against an estimated 0.4c loss for the year soon to be reported.


The broker has a valuation out on the group’s shares of 13p against just 3.95p in the market this morning.


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