finnCap Research Company Notes - 30 April 2019

Apr 30, 2019 / News

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Sector: Energy

Anglo African Oil & Gas (AAOG) : Corp

Formal offer of new Tilapia licence

Key data                              

  • Share price (p)                  10.0
  • Target price (p)                52.0
  • Market cap (£m)                              23.8
  • Enterprise value (£m)                    22.5

Good news for AAOG this morning, which has been formally offered a new 25-year licence for its Tilapia field in the Congo. While expected, this follows extensive negotiations and is a validation of the work performed by AAOG on the licence. It should also remove any element of remaining doubt for investors. Once licence terms are finalised, it will allow management to focus on bringing the Tilapia field into production via either the Djeno or R2/Mengo reservoirs and give it confidence in maturing a long-term full-field development plan.

Jonathan Wright


Sector: Support Services

PPHE Hotel Group (PPH) : Corp

Strong start to the year

Key data                              

  • Share price (p)                  1 670.0
  • Target price (p)                2 141.0
  • Market cap (£m)                              707.0
  • Enterprise value (£m)                    1 374.0

PPHE has detailed a strong Q1, with like-for-like sales growing +8.1% due to good increases in occupancy and room rates and strong growth in the UK and positive performances in the Netherlands, Germany and Hungary. We make no changes to our forecasts at this stage but highlight this is a very encouraging start to the year, evidencing both the strong position PPHE has in attractive markets and the benefits from recent repositionings and refurbishments. We reiterate our NAV based target price of 2141p (28% upside).

Guy Hewett


Sector: Technology & Telecoms


Additional orders cement SCISYS position with the ESA

Key data                              

  • Share price (p)                  189.0
  • Target price (p)                210.0
  • Market cap (£m)                              55.9
  • Enterprise value (£m)                    59.0

Two major follow-on orders on the Galileo project from Thales Alenia Space France help to underpin our forecasts, and reinforce SCISYS’s position as an expert for innovative ground-segment solutions and as a long-standing partner of the prime contractor to the European Space Agency.

Lorne Daniel


Sector: Industrials

Solid State (SOLI) : Corp

Encouraging FY trading update

Key data                              

  • Share price (p)                  465.0
  • Target price (p)                475.0
  • Market cap (£m)                              39.2
  • Enterprise value (£m)                    43.4

Another encouraging announcement following our upgrades earlier in the year. FY2019E revenue and profit are both expected to be at least in line with our recently upgraded forecasts, although it is the Group’s strong cash generation and order book that we find particularly noteworthy, with the former driven by timing benefits as well as strong underlying cash flow. We do not make any changes to forecasts at this stage.

David Buxton


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