Scanship Holding

Country:
Sector:
Market cap (m):
Norway
Capital Goods
NOK 1,768.22
Bloomberg:
Reuters:
Website:
SSHIP NO
SSHIP.OL
Share price (close):
NOK 18.35

Latest Reports

10 MAY 2019
Commissioned Research: New technology will boost contract size
We revise our 2019, 2020 and 2021 EBIT estimates up by 24%, 36% and 55%, respectively. We believe the company will secure retrofit contracts in the short term; it is also tendering for 30 newbuild contracts, which will support long-term growth. Its newly developed product, MAP (microwave-assisted pyrolysis), has the potential to double the contract size for newbuilds. Scanship has low operational and financial gearing with low reinvestment requirements for existing business, setting the foundation for significant FCF growth in the coming years. We raise our fair value range to NOK 10.7-14.1 (5.0-7.0) based on base- and high-case DCF valuation. Marketing material commissioned by Scanship Holding.

Commissioned Research: Continues to excel in a growing market
Scanship reported H2 numbers above our expectations, and continues to excel in a consolidated cruise industry delivering its sustainable waste and wastewater treatment systems. H2 2018 revenues came in at NOK 183m, 10% above our estimate. We are confident that Scanship will continue to deliver on our estimates going forward. It reported an all-time-high year-end order book of NOK 656m, up 40% y/y, with an additional NOK 200m in options, in line with our estimates. The expected growth in the cruise industry bodes well for the company, as it is tendering for an additional 22 newbuilds. With strong financials and increasing cash flow, the board will propose a semi-annual dividend of NOK 0.10, which we find positive. We calculate a higher fair value range of NOK 5.0-7.0 (NOK 4.9-7.0). Marketing material commissioned by Scanship Holding

19 FEB 2019
Commissioned Research: A green ocean strategy
Thanks to its distinctive technology for handling marine waste and wastewater, Scanship should continue to benefit strongly from the "green wave". There is an increasing sustainability mindset among ship owners, passengers, and legislators that sea pollution must be reduced and eventually eliminated. Scanship has substantial experience in this niche and a particularly strong standing among the world's largest cruise ship operators. Given steady growth in the global cruise fleet and increased environmental demands, we find that Scanship is well-positioned. Moreover, Scanship is supplementing its offering with waste-to-energy products and has even expanded their use to onshore markets, including the aquaculture industry. With innovative technology, a strong market position and capable management, we believe the outlook is promising. Marketing material commissioned by Scanship Holding

Equity analysts

Senior Analyst

Key persons

CEO: Henrik Badin

CFO: Erik Magelssen

Chairman: Narve Reiten

Numbers
Nordea
NOKm
2015
2016
2017
2018
2019E
2020E
2021E
Total revenues
200.3
171.6
247.0
329.6
417.4
487.1
597.6
Ebitda (adj.)
10.21
-3.54
24.33
37.58
53.20
66.74
87.27
Ebitda - margin
5.1%
-2.1%
9.8%
11.4%
12.7%
13.7%
14.6%
EBIT (adj.)
8.3
-5.8
21.3
35.5
50.6
63.9
84.2
EBIT (adj.) margin
4.2%
-3.4%
8.6%
10.8%
12.1%
13.1%
14.1%
PTP (adj.)
6.7
-5.1
17.3
33.2
49.6
62.9
83.2
Net profit from cont oper (adj)
4.95
-4.00
13.68
27.66
38.65
49.07
64.92
Shareholders´ Equity
49.8
45.4
57.9
93.4
112.9
139.0
174.7
Net interest bearing debt
8.5
21.6
16.3
-4.0
-13.8
-34.6
-59.6
Net gearing
17.1%
47.6%
28.2%
-4.3%
-12.2%
-24.9%
-34.1%
Net debt/EBITDA
0.8
-6.2
0.7
-0.1
-0.3
-0.5
-0.7
Free cash flow to equity
15.4
-13.2
5.3
19.8
29.9
44.9
55.2
Diluted number of shares in issue, year-end (m)
96.5
96.5
96.2
96.4
96.4
96.4
96.4
Nordea Markets estimates published on May 10, 2019
Source: Company data, Nordea estimates
Per share data and multiples
Nordea
NOK and %
2015
2016
2017
2018
2019E
2020E
2021E
EPS (adj.)
0.05
-0.04
0.14
0.29
0.40
0.51
0.67
EPS (adj.) growth
166.8%
-180.9%
442.8%
102.0%
39.7%
27.0%
32.3%
DPS
0.00
0.00
0.00
0.20
0.24
0.31
0.40
BVPS
0.5
0.5
0.6
1.0
1.2
1.4
1.8
P/E (adj.)
20.3
n.a.
29.9
16.0
45.7
36.0
27.2
EV/Sales
0.54
0.66
1.72
1.33
4.20
3.56
2.86
EV/EBITDA (adj.)
10.67
n.a.
17.48
11.66
32.98
25.97
19.58
EV/EBIT (adj.)
13.09
n.a.
19.94
12.36
34.70
27.12
20.28
P/BV
2.01
2.02
7.06
4.74
15.66
12.72
10.12
Dividend yield
0.0%
0.0%
0.0%
4.4%
1.3%
1.7%
2.2%
FCF yield
15.3%
-14.4%
1.3%
4.5%
1.7%
2.5%
3.1%
RoE
9.4%
-10.2%
24.3%
35.2%
37.5%
39.0%
41.4%
ROIC
9.7%
-6.9%
21.7%
29.7%
35.1%
38.6%
44.6%
Nordea Markets estimates published on May 10, 2019
Source: Company data, Nordea estimates

Source: Thomson Reuters