Original-Research: Agrios Global Holdings Ltd. - von GBC AG Einstufung von GBC AG zu Agrios Global Holdings Ltd. Unternehmen: Agrios Global Holdings Ltd. ISIN: CA00856K1003 Anlass der Studie: Research Report (Coverage initiated) Empfehlung: BUY Kursziel: 1.38 CAD Kursziel auf Sicht von: 31.03.2021 Letzte Ratingänderung: - Analyst: Matthias Greiffenberger, Julien Desrosiers "Developing the new gold standard for quality cannabis" Disruptive business model that centers on quality, duplication of results and consistency; Company is entering the growth phase Agrios Global Holdings is a company in the take-off stage, with a strong growth potential. It currently owns one state-of-the-art cultivation growing facility in Washington State that is leased to a licensed Tier 3 cannabis producer and processor. The company provides data-driven aeroponic cultivation equipment rental and growing services to cannabis producers. The company's technology can also be used for any type of indoor cultivation. The indoor aeroponic market in the USA could reach USD 40 billion annually by 2022. Moreover, the American cannabis market could reach USD 75 billion annually by 2030. Specifically, the Washington State market represented approximately USD 1.371 billion in 2017 and is expected to grow to USD $2.28 billion by 2020. The company had total revenues of USD 4.04 million in the fiscal year 2018/19 and is growing rapidly. For the fiscal year 2019/20, we expect the company's revenues to be around USD 8.40 million. The rise in revenues can be attributed to the increase in demand for Agrios' products and services and the introduction of new services to cannabis producers. We expect the company to post losses for this fiscal year of USD 0.50 million attributable mainly to a USD 1.07 million share-based payment. The company has proven the economics of its business model. They have hired key personnel in the last few months in order to develop new lines of services. We expect the company to launch its own brand in 2019/20 as well as to enter highly profitable sectors of the cannabis industry. By 2020/21, we expect the company to expand services into the State of Missouri. Three main factors will impact Agrios' growth in revenues. First the company will improve its cultivation technology and array of services. Second, the price of cannabis in Washington State should start to rise again as we are seeing the end of the contraction period. Third, we believe that Agrios will expand their service offering and establish new income sources as it enters the Missouri market in 2020/21. On this basis, we expect the company's revenue to continue its strong growth in the next few financial years. We estimate revenues of USD 8.4 million for the fiscal year 2019/20, USD 13.50 million for fiscal 2020/21, and USD 21.84 million in fiscal 2021/22. We project the company to post net profit in the fiscal years 2020/21 and 2021/22. The positive cash flow generated by Agrios' activities will pay for the new facility. As the cannabis industry matures in the USA, moving from quantity to quality, Agrios will be positioned in a niche market where their production costs will rival the lowest in the sector while their quality will be the best amongst their peers. Agrios' focus on the duplication of the unique cannabinoids mix generated in each strain could be the key to unlocking pharmaceutical partnerships. This evolution of the cannabis market into a more educated and mature sector will most definitely provide Agrios with growth opportunities. Based on our DCF valuation, we have calculated a price target of 1.38 CAD (1.04 USD; 0.94 EUR ). Against the background of the high upside potential, we assign a BUY rating. Die vollständige Analyse können Sie hier downloaden: http://www.more-ir.de/d/18583.pdf Kontakt für Rückfragen Jörg Grunwald Vorstand GBC AG Halderstraße 27 86150 Augsburg 0821 / 241133 0 research@gbc-ag.de Offenlegung möglicher Interessenskonflikte nach § 85 WpHG und Art. 20 MAR. Beim oben analysierten Unternehmen ist folgender möglicher Interessenkonflikt gegeben: (5a,5b,11); Einen Katalog möglicher Interessenkonflikte finden Sie unter: http://www.gbc-ag.de/de/Offenlegung.htm Date and time of completion of this research: 01/08/2019 (16:00) Date and time of first distribution: 05/08/2019 (16:00) Target price valid until: max. 31/03/2021 =------------------übermittelt durch die EQS Group AG.------------------- Für den Inhalt der Mitteilung bzw. Research ist alleine der Herausgeber bzw. Ersteller der Studie verantwortlich. Diese Meldung ist keine Anlageberatung oder Aufforderung zum Abschluss bestimmter Börsengeschäfte.
(END) Dow Jones Newswires
August 05, 2019 10:01 ET (14:01 GMT)
