BluGlass (BLG)
Rating: Buy |Risk: High |Price Target: $0.80
Momentum is Accelerating Towards Licensing & Further Collaboration Agreements
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EVENT
BLGs momentum is accelerating towards realising significant commercial opportunities with multiple partners, as evidenced by a number of recent announcements from BLG and other companies. Shaw and Partners forecasts, TP and BUY rating remain unchanged.
HIGHLIGHTS
·
Lumileds extension shows it is serious and represents a significant de-risking of BLG. On 14 March Lumileds and BLG made their first joint announcement that the two companies had extended their collaboration. Lumileds stated it ‘is committed to the project and looks forward to
1H18 BLG made a number of senior commercial staff appointments that suggest it is expecting to move into a commercial phase soon, iii) BLGs MD Giles Bourne recently returned from the US and UK where he presented to institutional investors, we understand similar interest in HK will be addressed this week, and v) over FY17 BLG commissioned two upgrades to its reactors in Silverwater which are focussed on performance improvement and
production level scalability.
RECOMMENDATION We see the developments outlined above reflect BLG accelerating towards licensing with Lumileds and IQE Plc. Other deals expected include licensing with Veeco and further collaborations to develop micro-LED applications. Our TP and BUY rating is reconfirmed, however once the deals referred to above are in place risk to our TP moves to the upside.
Key Information
Current Price ($ps)
0.41
12m Target Price ($ps)
0.80
52 Week Range ($ps)
0.23 - 0.41
Target Price (%)
95.1%
TSR (%)
95.1%
Reporting Currency
AUD
Market Cap
152.5
Sector
Information Technology
ASX 200 Weight (%)
0.00%
Fundamentals
YE 30 Jun (AUD)
FY17A
FY18E
FY19E
FY20E
Sales ($m)
0.7
10.2
31.0
108.0
NPAT ($m)
(3.7)
5.5
23.3
99.2
EPS adj (cps)
(1.0)
1.4
6.1
25.9
EPS Growth (%)
(6.8%)
239.5%
322.5%
326.0%
DPS (cps) (AUD)
0.0
0.0
0.0
0.0
Franking (%)
0.0%
0.0%
100.0%
100.0%
Ratios
YE 30 Jun
FY17A
FY18E
FY19E
FY20E
P/E (x)
(25.2)
28.4
6.7
1.6
EV/EBITDA (x)
(28.5)
25.4
5.1
0.4
Div Yield (%)
0.0%
0.0%
0.0%
0.0%
Payout Ratio (%)
-0.0%
0.0%
0.0%
0.0%
