Newcastle analyst Graeme Newing has issued a research note on...

Newcastle analyst Graeme Newing has issued a research note on Aeris Environmental.

The note suggests AEI will record:

1. FY2020 turnover of ~$13m, up 90%

2. FY 2021 turnover of $24m, up 85% and a pre-tax profit of $6m

3. FY 2022 turnover of $40m, up 66% and a pre-tax profit of $14m, up 133%

While Newing does not mention turnover/profit implications of AEI’s recently announced “strategic alliance” with a Chinese consortium associated with Li Bin, it would seem that he’s assuming the deal will result in a 20% contribution to AEI 2021 group turnover.

Graeme Newing reveals on his website newingonstocks.com that he recently “doubled up” his holding in AEI to a level equalling 6% of his Trading Portfolio.

Newing’s latest purchases were booked at around 80cps.

“I decided to buy more because the chart looked so good and, just as importantly, I did a bit more work on the company and completed one of my brief internal notes to give me a bit more comfort,” Newing says.

AIE becomes the second ranking stock in Newing’s Trading Portfolio after SDV/SciDev which accounts for ~62% of the Portfolio.

Portfolio return for the FY to date is a lofty 121.4%.

Graeme Newing’s main holding outside his Trading and Long Term Investment Portfolios is in PET/Phoslock Environmental.

PET and AEI have several things in common. PET chairman, Laurence Freedman is, through Link Traders (Aust), AEI’s fourth largest shareholder.

Link would appear to have topped up its holding in the recent ASI placement at 43c.

AEI Investor Relations Manager Michael Kotowicz is Investor Relations Manager at PET.

While Graeme Newing may be the first analyst to issue a research note on AEI, he won’t be the last.

Several brokers are said to be preparing reports on AEI.

It’s likely that AEI CEO Peter Bush and chairman Maurie Stang will actively facilitate analyst interest.

Over at NAN/Nanosonics, chairman Maurie Stang and CEO Michael Kavanagh have recently encouraged research by Bell Potter, Canaccord Genuity, Citi, Morgans, UBS and Wilsons.