PPK 2026FY and beyond.

With the company refusing to show the market what they are missing, I feel it needs someone to go forward with a market overall update!!!!

Li-S Energy

• Business Description: Li-S Energy (ASX: LIS), with PPK holding a 39% stake, develops lithium-sulfur and lithium-metal batteries with over twice the energy density of lithium-ion, targeting aerospace, defense, and electric aviation.

• Recent Developments: Produced Australia’s first lithium metal foils at Geelong (ahead of schedule with a AUD 1.78 million grant), signed a defense collaboration (25 June 2025), and commissioned a 2MWh facility with UAV test flights.

• Growth Prospects: Defense contracts could reach AUD 50 million to AUD 100 million annually; aviation/drones target a USD 15 billion market by 2035, with revenue potential exceeding AUD 100 million in 3-5 years.

• Risks: R&D delays, regulatory hurdles, and competition from lithium-ion leaders.

PowerPlus Energy

• Business Description: PowerPlus Energy, a PPK subsidiary, focuses on Lithium Iron Phosphate (LiFePO4) batteries, including the Whispr 7 (7kWh), LINET4835, and Eco4847P, targeting telecom, renewable energy, and residential storage.

• Recent Developments:

  • Launched LINET4835 with RFI Technology Solutions (July 2025) and Eco4847P (August 2024).

  • Introduced the Whispr 7, a 7kWh battery designed for cost-conscious households, aligning with the federal Cheaper Home Batteries Program (effective 1 July 2025), offering a 30% discount (up to AUD 3,300 on a 10kWh equivalent basis).

  • Engages in nanomaterial validations, though progress is gradual.

• Growth Prospects:

  • Residential Market: The Whispr 7 targets the growing demand for smaller batteries (5-10kWh), with the average 2024 size at 11.75kWh. The federal rebate and state incentives (e.g., Northern Territory’s high 80% attachment rate, South Australia’s 14.9%) could drive adoption. Projected FY 2025-26 sales: 600+ Whispr 7 units (5% market share), with revenue of AUD 42 million to AUD 54 million (6,000 units at AUD 7,000-AUD 9,000 each).

  • Telecom Sector: LINET4835 could capture AUD 250 million to AUD 500 million over five years in the USD 5 billion market.

  • Renewables: Eco4847P targets AUD 50 million to AUD 100 million in the USD 20 billion residential storage market.

• Risks: Supply chain constraints due to rebate-driven demand surges, competition from Tesla/BYD, and nanomaterial delays.

Craig International Ballistics (CIB)

• Business Description: PPK owns 39% of CIB, a leader in composite armor for defense forces.

• Recent Developments: Secured a AUD 30 million order (3 May 2024) and commissioned a new hydraulic press for enhanced production.

• Growth Prospects: Targets AUD 100 million to AUD 150 million annually by 2028; exports could add AUD 50 million to AUD 75 million with NATO contracts.

• Risks: Geopolitical budget cuts and material supply disruptions.

White Graphene Limited (WGL) and BNNT Technology (Merged)

• Business Description: The merged entity combines WGL’s boron nitride nanosheets with BNNT’s nanotubes, with PPK at 49.32% post-merger, serving aerospace, defense, electronics, and medical sectors.

• Recent Developments (10 July 2025): Merger for efficiency, building on a USD 100,000 Boeing deal (2023) and Filgen distribution (2023), with prices dropping to USD 150/gram.

• Growth Prospects: Aerospace/defense (USD 500 million to USD 1 billion), electronics/medical (USD 200 million to USD 300 million), with AUD 50 million to AUD 100 million revenue in 3-5 years.

• Risks: Integration challenges and market acceptance versus carbon nanotubes.

Market Context and Projections

• Home Battery Trends: In 2024, one in three solar installs included a battery (75,000 units), with a 61.7% growth rate. The Cheaper Home Batteries Program (30% discount from 1 July 2025) could boost sales by 30-50%, projecting 90,000 to 120,000 units in FY 2025-26. Smaller batteries like Whispr 7 (7kWh) are gaining traction due to affordability and rebates, especially in Northern Territory and South Australia.

• Whispr 7 Impact: As a new product, 600+ units (5% market share) could generate AUD 42 million to AUD 54 million, a significant revenue uplift for PowerPlus Energy.

• Current Share Price : AUD 0.37, based on recent trends.

• Valuation Methodology:

  • Discounted Cash Flow (DCF):

    • Li-S Energy: AUD 0.30 to AUD 0.40.

    • PowerPlus Energy: AUD 0.20 to AUD 0.30 (including Whispr 7’s AUD 42 million to AUD 54 million).

    • CIB: AUD 0.20 to AUD 0.25.

    • WGL/BNNT: AUD 0.10 to AUD 0.15.

    • Total DCF Range: AUD 0.80 to AUD 1.10.

  • Price-to-Book (P/B) Ratio: NTA of 48.2 cents with a 1.8x multiple (growth premium) suggests AUD 0.87.

  • Peer Comparison: Nanomaterial/defense firms trade at 1.6x to 1.9x P/B, supporting AUD 0.77 to AUD 0.91.

• Market Cap Estimate: With CIB’s AUD 40 million+ and Whispr 7’s AUD 42 million to AUD 54 million as new revenue, total additional revenue could exceed AUD 82 million to AUD 94 million annually. Assuming a P/E multiple of 15x (industry average), this implies an incremental market cap of AUD 1.23 billion to AUD 1.41 billion. Adding to PPK’s current market cap .

• Target Share Price: AUD 0.90, an massive% upside, reflecting the Whispr 7’s market entry and subsidiary growth.

• Investment Thesis: PPK’s diversified portfolio, bolstered by the Whispr 7’s timely launch and the WGL/BNNT merger, taps into high-growth sectors. The federal rebate’s demand surge and CIB’s defense backlog enhance revenue potential. Risks include supply chain bottlenecks and execution delays.

Buy with a 12-month target price of AUD 0.90. Key catalysts include Whispr 7 sales ramp-up, Li-S Energy’s defense results, CIB’s order fulfillment, and WGL/BNNT partnerships. PPK’s undervalued position offers significant upside for informed investors.