Thursday, June 17, 2021

NX Filtration NXFIL.AS rough notes

I read the prospectus summary 

There are 50m ? shares outstanding. Around EUR 150m cash has been raised. Share price now is EUR 13,50 x 50m shares is market cap:  EUR 675m

Sales this year are EUR 4m so it is trading at EUR 675m-150m cash = EUR 525m/4m sales = >100x sales. 

With money raised in the IPO they plan to build a factory with 10 spinning lines and a target total capacity of 80 000 modules. 

I don't know what the price or margin of module is. I called the company and they will call back. 

Say you want 10% return on EUR 675m per year -> EUR 68000k / 80k = EUR 850 net profit per module? 

(Very rough in orders of magnitude.)

From a customer standpoint, what is the cost of the cleaned water? 

"The world's largest RO desalination plant was built in Sorek, Israel, in 2013. It has an output of 624 thousand cubic metres per day (165 million US gallons per day).[36] It is also the cheapest and will sell water to the authorities for US$0.58/m3.[37]"" =>

Conclusion: Place on "too difficult pile"

Investors; Infestos ( ten Doeschot ), Teslin, etc. 

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