finnCap Research Company Notes - 19 November 2019

Nov 19, 2019 / News

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Sector: Mining

Tri-Star Resources (TSTR) : Corp

SPMP project update

Key data                              

  • Share price (p)                  31.0
  • Target price (p)                68.0
  • Market cap (£m)                              29.2
  • Enterprise value (£m)                    33.0

Tri-Star Resources has announced that the SPMP antimony plant in Oman has significantly increased the purity of the antimony and gold produced. Antimony grades have now improved to better than 99.65%, which is the world standard commercial grade. Gold grades in doré have now improved to 25% and the first commercial sales have been made. Tri-Star’s principal asset is its 40% shareholding in SPMP; this in turn owns the antimony and gold production facility in northern Oman. We maintain our 68.0p price target.

Martin Potts

020 7220 0544

mpotts@finncap.com

 

Sector: Technology & Telecoms

SRT Marine Systems (SRT) : Corp

Record H2 expected from Systems milestones

Key data                              

  • Share price (p)                  41.8
  • Target price (p)                75.0
  • Market cap (£m)                              64.6
  • Enterprise value (£m)                    67.8

As noted in the October trading update, SRT’s big Systems project milestones will be booked in H2, leaving just the growing Transceivers revenue in H1. This business jumped 15% YoY and drove an overall 10% YoY growth in group revenue. Management is comfortable in delivering major milestones on the Philippines MDA deployment, which will see SRT achieve record H2 results and we therefore reiterate our FY forecasts and TP of 75p.  

Lorne Daniel

020 7220 0545

ldaniel@finncap.com

 

Sector: Industrial Technology

Trifast (TRI) : Corp

Interim results: Market share gains in tough markets

Key data                              

  • Share price (p)                  168.0
  • Target price (p)                200.0
  • Market cap (£m)                              204.5
  • Enterprise value (£m)                    220.2

Interim results illustrate two main features: challenging underlying markets as previously flagged, which were partly offset by ongoing increases in market share. Some effects from customers delaying new product introductions was also seen, which reflected the fragile business confidence. Automotive markets remain weak for the time being, although the pipeline in this area should see robust future growth, assisted by EV introductions. No change to forecasts having reduced expectations following October’s trading update. Looking through the downturn, we now consider the shares to be good value on a P/E of 13x and offer good upside.

David Buxton

020 7220 0542

dbuxton@finncap.com

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