Hi Life, fantastic effort and I have re-listened twice since.
Trying to piece together the main message from the webinar and I think it is a message of transformation after securing cash flow provided from IC.
”Equipment Supplier”
This is where I picked up at the 24min mark in the recording about our focus now.
We were essentially just a tech company embarking on commercialization as Emefcy. After the merger, we were EPC, some Nirobox, some water tech and budding MABR. Unfortunately, due to high SG&A to support operations around the globe, we remained unprofitable for the last 3 years. With the conclusion of the biggest legacy project from RWL, and a certainty of cash flow for the next 2 years, and on the Emefcy side of the business, we are gaining traction in China, South East Asia, and Nirobox in the Middle East, this is the next chapter.
We are now an innovative water tech equipment supplier to our partners who are EPCs and/or owner operators who will still require our services for maintenances.
EPC companies in general, commands lower valuations traditionally. Many examples of publicly listed water EPCs in Asia have had low PE. We shall see how the market will value us with this change.
Secondly, recurring segment. In the early part of the recording, Richard had alluded to the WaaS are now re-emphasize. In my view, we are still an equipment supplier, we get 70% funding for the project which I suppose it’s for the EPC side, we operate remotely, the funds get their required IRR and we get our IRR plus the waterfall returns.
Equipment here will not be restricted to MABR plants, we have Nirobox, Dissolved Air Floatation Systems, Containeralized Ultra Pure water systems etc all with a theme on the decentralized and distributed water management systems.
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