Ved forrige kvartalsaflæggelse guidede selskabet lidt negativt på ordretilgangen i USA. Det betød at mange investorer solgte ud af aktien. Nu ser vi så med dagens kvartalsrapport, at udsalget var en overreaktion.
Disclaimer: Jeg har aktier i selskabet.
"HEX:60M FØR SKATT I 3.KV 2014 (35)
08:46
Oslo (TDN Finans): Hexagon Composites fikk et resultat før skatt på 60 millioner kroner i tredje kvartal 2014, mot et resultat på 35 millioner kroner i samme periode året før.
Det opplyser selskapet i kvartalsrapporten torsdag.
Driftsresultatet ble 55 millioner kroner (41), av driftsinntekter på 349 millioner kroner (339).
Styret i Hexagon venter at selskapet samlet sett vil opprettholde marginutviklingen ut året og ser fremover mot en fortsatt positiv virksomhets- og markedsutvikling.
Selskapet opplyser at salgsvolumet i det amerikanske tungtransportmarkedet ventes å bedres i fjerde kvartal. De fundamentale markedsforholdene forblir gunstige og styret har ikke endret synet om positive langsiktige utsikter, opplyses det i kvartalsrapporten".
ØT, finans@tdn.no
TDN Finans, +47 22 00 11 55
Disclaimer: Jeg har aktier i selskabet.
"HEX:60M FØR SKATT I 3.KV 2014 (35)
08:46
Oslo (TDN Finans): Hexagon Composites fikk et resultat før skatt på 60 millioner kroner i tredje kvartal 2014, mot et resultat på 35 millioner kroner i samme periode året før.
Det opplyser selskapet i kvartalsrapporten torsdag.
Driftsresultatet ble 55 millioner kroner (41), av driftsinntekter på 349 millioner kroner (339).
Styret i Hexagon venter at selskapet samlet sett vil opprettholde marginutviklingen ut året og ser fremover mot en fortsatt positiv virksomhets- og markedsutvikling.
Selskapet opplyser at salgsvolumet i det amerikanske tungtransportmarkedet ventes å bedres i fjerde kvartal. De fundamentale markedsforholdene forblir gunstige og styret har ikke endret synet om positive langsiktige utsikter, opplyses det i kvartalsrapporten".
ØT, finans@tdn.no
TDN Finans, +47 22 00 11 55
30/10 2014 11:24 runski 0
70072 Jon Erik Engeset er enig.
Oslo (TDN Finans):Hexagon Composites ser lyst på markedet fremover med størst potensial i Nord-Amerika, også med oljepris ned mot 80 dollar. Selskapet vurderer sine muligheter i Russland. I lys av selskapets kontantstrøm virker det naturlig med utbytte også neste år.
Det sier administrerende direktør Jon Erik Engeset til TDN Finans i forbindelse med selskapets kvartalspresentasjon.
-Vi ser veldig lyst på markedet. Vi har hatt litt tilbakegang på høytrykksområdet, og et veldig fint kvartal på lavtrykksområdet, sier han.
Engeset mener tilbakegangen på høytrykk ikke skyldes fallet i oljeprisen, men at det har vært svært høy aktivitet i transportmarkedet i USA, med gode priser for trucking-selskapene. Disse har derfor ikke prioritert å TA i bruk ny teknologi for å få ned kostnadene sine.
Over tid føler selskapet seg overbevist om at dette er en mulighet som selskapene er nødt til å benytte seg av.
-Også med oljepris på 80 dollar er det stor differanse mellom prisen på naturgass og diesel, og dermed et veldig sterkt investeringscase for å gå over til ny teknologi, sier Engeset.
Han sier imidlertid at ytterligere infrastruktur må på plass. Han viser til at utbyggingen av denne går raskt i USA nå, men sier at dette er nødt til å fortsette, noe alt tyder på.
Selskapet er godt finansiert for videre vekst.
-Vi har en veldig god kontantstrøm. Akkurat i dette kvartalet fikk vi, litt tilfeldig, en oppbygging av varelager, men dette skal vi løse opp i fjerde kvartal. Da vil vi ha mer enn tilstrekkelig kontantstrøm til å dekke investeringer og gjelden er også veldig lav. Vi er veldig bekvemme nå, sier han.
Hexagon er også godt posisjonert til å betale utbytte også fremover, mener Engeset. Selskapet har betalt utbytte de siste to årene, og har en betingelse på et lån som tilsier at det kan betale ut 50 prosent av resultat etter skatt.
-Dette var omtrent det som ble utbetalt i år. Dette er opp til styret å beslutte, men jeg antar at den policyen vil ligge fast til neste år. Med den kontantstrømmen vi har nå virker det naturlig med utbytte også neste år, sier Engeset.
På to til tre års sikt mener Engeset at Nord-Amerika er det potensielt største markedet for selskapet. Hexagon ser også muligheter i Sør-Amerika, Sørøst-Asia og på lengre sikt Russland.
-Svekket rubel gjør det vanskelig å tjene penger for oss i Russland nå. Vi har ikke tatt noen stilling til om vi skal ut av markedet i Russland. Vi skal gjennomgå hva vi skal gjøre her. At vi skal ut ser jeg som usannsynlig, men vi må vurdere andre modeller enn den modellen vi jobber med nå, sier han.
Europa er kanskje det området vi ser minst utviklingspotensial på kort sikt, men dersom hydrogenteknologi begynner å få gjennomslag kan også dette bli et spennende markedsområde. På lavtrykk er Europa selskapets største marked, og her ser selskapet vekstmuligheter.
Selskapet har et mål om ebitda-margin på over 20 prosent og 15 prosent ebit-margin.
-Nå ligger vi litt over, men vi skal ikke bli for grådige heller, og vil derfor ikke øke målene, sier han.
JER, finans@tdn.no
TDN Finans, +47 22 00 11 55
Oslo (TDN Finans):Hexagon Composites ser lyst på markedet fremover med størst potensial i Nord-Amerika, også med oljepris ned mot 80 dollar. Selskapet vurderer sine muligheter i Russland. I lys av selskapets kontantstrøm virker det naturlig med utbytte også neste år.
Det sier administrerende direktør Jon Erik Engeset til TDN Finans i forbindelse med selskapets kvartalspresentasjon.
-Vi ser veldig lyst på markedet. Vi har hatt litt tilbakegang på høytrykksområdet, og et veldig fint kvartal på lavtrykksområdet, sier han.
Engeset mener tilbakegangen på høytrykk ikke skyldes fallet i oljeprisen, men at det har vært svært høy aktivitet i transportmarkedet i USA, med gode priser for trucking-selskapene. Disse har derfor ikke prioritert å TA i bruk ny teknologi for å få ned kostnadene sine.
Over tid føler selskapet seg overbevist om at dette er en mulighet som selskapene er nødt til å benytte seg av.
-Også med oljepris på 80 dollar er det stor differanse mellom prisen på naturgass og diesel, og dermed et veldig sterkt investeringscase for å gå over til ny teknologi, sier Engeset.
Han sier imidlertid at ytterligere infrastruktur må på plass. Han viser til at utbyggingen av denne går raskt i USA nå, men sier at dette er nødt til å fortsette, noe alt tyder på.
Selskapet er godt finansiert for videre vekst.
-Vi har en veldig god kontantstrøm. Akkurat i dette kvartalet fikk vi, litt tilfeldig, en oppbygging av varelager, men dette skal vi løse opp i fjerde kvartal. Da vil vi ha mer enn tilstrekkelig kontantstrøm til å dekke investeringer og gjelden er også veldig lav. Vi er veldig bekvemme nå, sier han.
Hexagon er også godt posisjonert til å betale utbytte også fremover, mener Engeset. Selskapet har betalt utbytte de siste to årene, og har en betingelse på et lån som tilsier at det kan betale ut 50 prosent av resultat etter skatt.
-Dette var omtrent det som ble utbetalt i år. Dette er opp til styret å beslutte, men jeg antar at den policyen vil ligge fast til neste år. Med den kontantstrømmen vi har nå virker det naturlig med utbytte også neste år, sier Engeset.
På to til tre års sikt mener Engeset at Nord-Amerika er det potensielt største markedet for selskapet. Hexagon ser også muligheter i Sør-Amerika, Sørøst-Asia og på lengre sikt Russland.
-Svekket rubel gjør det vanskelig å tjene penger for oss i Russland nå. Vi har ikke tatt noen stilling til om vi skal ut av markedet i Russland. Vi skal gjennomgå hva vi skal gjøre her. At vi skal ut ser jeg som usannsynlig, men vi må vurdere andre modeller enn den modellen vi jobber med nå, sier han.
Europa er kanskje det området vi ser minst utviklingspotensial på kort sikt, men dersom hydrogenteknologi begynner å få gjennomslag kan også dette bli et spennende markedsområde. På lavtrykk er Europa selskapets største marked, og her ser selskapet vekstmuligheter.
Selskapet har et mål om ebitda-margin på over 20 prosent og 15 prosent ebit-margin.
-Nå ligger vi litt over, men vi skal ikke bli for grådige heller, og vil derfor ikke øke målene, sier han.
JER, finans@tdn.no
TDN Finans, +47 22 00 11 55
31/10 2014 18:01 Helge Larsen/PI-redaktør 070085 HEXAGON - NGV INVESTOR er bull.
Kilde: Seeking alpha:
"NGV Investor
Oil & gas, small-cap, long-term horizon
Hexagon Composites - Impressive Q3 Earnings Report
Oct. 30, 2014 12:35 PM ET ' About: Hexagon Composites ASA (HXGCF)
Disclosure: The author is long HXGCF. (More...)
Summary
Hexagon Composites delivers impressive Q3 earnings despite revenue dropping more than expected.
The Gas Distribution Products division is set for rapid growth in 2015. Orders from the North American heavy duty NGV market are also increasing after a temporary drop in Q3.
Hexagon Composites' strategy is playing out as expected and the company is positioned to continue its rapid growth in the years ahead.
(Editor's Note: Investors should be mindful of the risks of transacting in illiquid securities such as HXGCF. Hexagon Composite's listing in Oslo, HEX.OL, offers stronger liquidity.)
This article was sent to 354 people who get email alerts on HXGCF.
Get email alerts on HXGCF »
Hexagon Composites (OTC:HXGCF) announced Q3 earnings on October 30, 2014. Despite a greater than expected drop in revenue from Q1 and Q2, margins and EPS were a positive surprise and are outright impressive. More on this below, but first I intend to reflect on what has happened to my key themes since I started publishing articles here on Seeking alpha in November 2013.
My Key Themes Have Been:
Theme 1: Hexagon Composites is the best investment play in the rapidly growing Natural Gas Vehicle "NGV" sector
Theme 2: Hexagon Composites offers so much more than just exposure to the North American heavy duty NGV market
Theme 3: A relentless efficiency drive and manufacturing process innovation differentiates Hexagon Composites from the other players in the CNG tank industry and is the company's most valuable asset
Theme 4: Compressed Natural Gas (CNG) will be the preferred natural gas fuel for the North American heavy duty NGV market
Now let's see how these themes have played out:
Theme 1: Hexagon Composites is the best investment play in the rapidly growing Natural Gas Vehicle "NGV" sector
There are many ways to measure whether a company is "the best investment play", and for people with a lengthy investment horizon a drop in share price over the past 12 months does not necessarily mean that a company will not be a good investment longer-term. I have nevertheless used the share price metric as the trends are so clear that it becomes hard to argue anything else.
Theme 2: Hexagon Composites offers so much more than just exposure to the North American heavy duty NGV market
With this theme I have been highlighting the broad product platform being offered by Hexagon and that the Gas Distribution Division "GDP" and Hexagon Ragasco (LPG cylinders) have not been fully appreciated by the market and Hexagon's broader shareholder base. The Q3 report and presentation just continues to underline and emphasize this point. If you are still in doubt then the table below will hopefully settle this topic for good as the heavy duty segment only makes up approx. 1/3 of revenue so far in 2014 and the LPG segment is actually the largest and most profitable segment. This will change in 2015 as the heavy duty segment bounces back and the GDP division grows significantly.
Theme 3: A relentless efficiency drive and manufacturing process innovation differentiates Hexagon Composites from the other players in the CNG tank industry and is the company's most valuable asset
My point here has been that the best investment story in the CNG tank industry is not necessarily the company that has the most innovative products. At the end of the day it all comes down to one key word and that is "margin". Hexagon has over many years demonstrated an ability to gradually increase production efficiencies and the company is now achieving EBITDA margins north of 20% and EBIT margins in the 16% range. This is very impressive and all most unheard of for a company that operates in a "metal bashing" manufacturing industry. I expect margins to continue to improve going forward as additional growth will increase purchasing power and manufacturing process innovation continues.
Theme 4: Compressed Natural Gas (CNG) will be the preferred natural gas fuel for the North American heavy duty NGV market
I have in the past published some articles where I have been pretty outspoken about the North American CNG vs. LNG debate. For a number of reasons that I will not rehash here, but you can always read my articles covering this topic, I have been convinced that LNG will end up as a niche offering in the rapidly growing North American NGV market. The trend has been clear for a considerable amount of time and Hexagon's Q3 presentation confirms this with 90-95% of the heavy duty market now opting for CNG and Hexagon management lifting their long term base case from a 60% CNG market share to a 80% CNG market share. I hate to point out the obvious, but this will of course have a large longer-term positive impact for Hexagon as the dominant player in the CNG tank market.
Q3 Earnings Presentation
The Q3 earnings presentation was full of surprises. From the table below you can see that I widely missed the mark with my estimate and the astonishing thing is that revenue came in more than 10% below my estimate and they still beat EPS by more than 10%. This seemingly bizarre situation can be answered by the key reason for why I became a Hexagon Composites shareholder in he first place; the company has a relentless drive towards achieving greater production efficiencies and thereby increasing margins. Despite a big miss on revenue the company still delivered its best EBITDA margins ever at 21.5% and EBIT margins which were on par with the two previous quarters (also at record levels), despite revenue being 10-15% lower than Q1 and Q2.
Kudos to Hexagon management for learning from the lack of clarity and vague communication provided to the market during the Q2 presentation. This time around they spent a considerable amount of time explaining the outlook for the company and watching the Q3 webcast is highly recommended. Don't worry it is in English, so no need to first attend a crash course in Norwegian.
Q4 Outlook
I have been expecting an EPS of NOK 1.28 for 2014 as whole. I remain confident that Q4 will be strong enough to achieve this. Depending on the timing of some shipments for the GDP division (these shipments are lumpy from quarter to quarter) my EPS figure of 1.28 might even be too conservative.
I will publish an additional article in the coming weeks once I have time to fully digest the information provided by Hexagon management.
Summary
The key elements of my Hexagon Composites investment thesis are playing out as expected. Mr. Market seems to agree as the share price is up more than 15% at the time of writing this article. I don't know the number of investors holding a Hexagon Composites short position, but today is starting to look like a classic short-covering day.
short term volatility should not remove our focus from the big prize here, which we can all pick up once Hexagon Composites' strategy plays out in all its glory from 2016 onwards. In the meanwhile sit back and enjoy the ride.
Editor's Note: This article discusses one or more securities that do not trade on a major exchange. Please be aware of the risks associated with these stocks".
Kilde: Seeking alpha:
"NGV Investor
Oil & gas, small-cap, long-term horizon
Hexagon Composites - Impressive Q3 Earnings Report
Oct. 30, 2014 12:35 PM ET ' About: Hexagon Composites ASA (HXGCF)
Disclosure: The author is long HXGCF. (More...)
Summary
Hexagon Composites delivers impressive Q3 earnings despite revenue dropping more than expected.
The Gas Distribution Products division is set for rapid growth in 2015. Orders from the North American heavy duty NGV market are also increasing after a temporary drop in Q3.
Hexagon Composites' strategy is playing out as expected and the company is positioned to continue its rapid growth in the years ahead.
(Editor's Note: Investors should be mindful of the risks of transacting in illiquid securities such as HXGCF. Hexagon Composite's listing in Oslo, HEX.OL, offers stronger liquidity.)
This article was sent to 354 people who get email alerts on HXGCF.
Get email alerts on HXGCF »
Hexagon Composites (OTC:HXGCF) announced Q3 earnings on October 30, 2014. Despite a greater than expected drop in revenue from Q1 and Q2, margins and EPS were a positive surprise and are outright impressive. More on this below, but first I intend to reflect on what has happened to my key themes since I started publishing articles here on Seeking alpha in November 2013.
My Key Themes Have Been:
Theme 1: Hexagon Composites is the best investment play in the rapidly growing Natural Gas Vehicle "NGV" sector
Theme 2: Hexagon Composites offers so much more than just exposure to the North American heavy duty NGV market
Theme 3: A relentless efficiency drive and manufacturing process innovation differentiates Hexagon Composites from the other players in the CNG tank industry and is the company's most valuable asset
Theme 4: Compressed Natural Gas (CNG) will be the preferred natural gas fuel for the North American heavy duty NGV market
Now let's see how these themes have played out:
Theme 1: Hexagon Composites is the best investment play in the rapidly growing Natural Gas Vehicle "NGV" sector
There are many ways to measure whether a company is "the best investment play", and for people with a lengthy investment horizon a drop in share price over the past 12 months does not necessarily mean that a company will not be a good investment longer-term. I have nevertheless used the share price metric as the trends are so clear that it becomes hard to argue anything else.
Theme 2: Hexagon Composites offers so much more than just exposure to the North American heavy duty NGV market
With this theme I have been highlighting the broad product platform being offered by Hexagon and that the Gas Distribution Division "GDP" and Hexagon Ragasco (LPG cylinders) have not been fully appreciated by the market and Hexagon's broader shareholder base. The Q3 report and presentation just continues to underline and emphasize this point. If you are still in doubt then the table below will hopefully settle this topic for good as the heavy duty segment only makes up approx. 1/3 of revenue so far in 2014 and the LPG segment is actually the largest and most profitable segment. This will change in 2015 as the heavy duty segment bounces back and the GDP division grows significantly.
Theme 3: A relentless efficiency drive and manufacturing process innovation differentiates Hexagon Composites from the other players in the CNG tank industry and is the company's most valuable asset
My point here has been that the best investment story in the CNG tank industry is not necessarily the company that has the most innovative products. At the end of the day it all comes down to one key word and that is "margin". Hexagon has over many years demonstrated an ability to gradually increase production efficiencies and the company is now achieving EBITDA margins north of 20% and EBIT margins in the 16% range. This is very impressive and all most unheard of for a company that operates in a "metal bashing" manufacturing industry. I expect margins to continue to improve going forward as additional growth will increase purchasing power and manufacturing process innovation continues.
Theme 4: Compressed Natural Gas (CNG) will be the preferred natural gas fuel for the North American heavy duty NGV market
I have in the past published some articles where I have been pretty outspoken about the North American CNG vs. LNG debate. For a number of reasons that I will not rehash here, but you can always read my articles covering this topic, I have been convinced that LNG will end up as a niche offering in the rapidly growing North American NGV market. The trend has been clear for a considerable amount of time and Hexagon's Q3 presentation confirms this with 90-95% of the heavy duty market now opting for CNG and Hexagon management lifting their long term base case from a 60% CNG market share to a 80% CNG market share. I hate to point out the obvious, but this will of course have a large longer-term positive impact for Hexagon as the dominant player in the CNG tank market.
Q3 Earnings Presentation
The Q3 earnings presentation was full of surprises. From the table below you can see that I widely missed the mark with my estimate and the astonishing thing is that revenue came in more than 10% below my estimate and they still beat EPS by more than 10%. This seemingly bizarre situation can be answered by the key reason for why I became a Hexagon Composites shareholder in he first place; the company has a relentless drive towards achieving greater production efficiencies and thereby increasing margins. Despite a big miss on revenue the company still delivered its best EBITDA margins ever at 21.5% and EBIT margins which were on par with the two previous quarters (also at record levels), despite revenue being 10-15% lower than Q1 and Q2.
Kudos to Hexagon management for learning from the lack of clarity and vague communication provided to the market during the Q2 presentation. This time around they spent a considerable amount of time explaining the outlook for the company and watching the Q3 webcast is highly recommended. Don't worry it is in English, so no need to first attend a crash course in Norwegian.
Q4 Outlook
I have been expecting an EPS of NOK 1.28 for 2014 as whole. I remain confident that Q4 will be strong enough to achieve this. Depending on the timing of some shipments for the GDP division (these shipments are lumpy from quarter to quarter) my EPS figure of 1.28 might even be too conservative.
I will publish an additional article in the coming weeks once I have time to fully digest the information provided by Hexagon management.
Summary
The key elements of my Hexagon Composites investment thesis are playing out as expected. Mr. Market seems to agree as the share price is up more than 15% at the time of writing this article. I don't know the number of investors holding a Hexagon Composites short position, but today is starting to look like a classic short-covering day.
short term volatility should not remove our focus from the big prize here, which we can all pick up once Hexagon Composites' strategy plays out in all its glory from 2016 onwards. In the meanwhile sit back and enjoy the ride.
Editor's Note: This article discusses one or more securities that do not trade on a major exchange. Please be aware of the risks associated with these stocks".
