Stock research on global mid-cap companies

Evaluate Research

Evaluate Research provides institutional quality stock research on small-cap and  mid-cap companies on a global basis, thus helping connect investors with the company.

At Evaluate Research, we provide free of cost to all investors a 20-25 page Initiation Report which evaluates in great detail all aspects of the company:  growth opportunities, catalysts, business description, competitive positioning, SWOT analysis, risks, etc.  In addition, we determine specific price targets for the company based on detailed 5-year complete forecasts of financial statements including IS, BS, CF, ratios, etc.  Finally, whereas many sell-side brokers offer sketchy and irregular ongoing maintenance research of companies, if not outright dropped or termination of coverage, at Evaluate Research we systematically monitor and regularly publish Update Notes covering quarterly earnings, major corporate events, etc.

All of the research reports are broadly and freely disseminated globally to leading Fund Managers and analysts who invest specifically in mid-size equities, and also on leading investment information platforms including: Bloomberg, Thomson Reuters, FactSet etc.

Stock research on global mid-cap companies, Evaluate Research

Equity Bottom-Up

China Renewable Energy Investment / Equity Bottom-Up

China Renewable Energy Investment (987 HK)

We believe that CRE is clearly misunderstood as accounting standards require the company to report the results of its most profitable windfarms below the operating income line, masking the true profitability of the company. As a result, the company continues to trade at extreme deep value levels of 0.36x P/B, 4.3x EV/EBITDA and 7.1x 2018E P/E. With a strong pipeline of projects, the company is expected to grow rapidly over the next few years. The Henan Songxian windfarm, which will commence operations early next year, is expected to add more than 80% to the top-line and more than 50% to the bottom-line of the company. The various supply-side reforms underway in China [including rollout of new UHV transmission lines, restriction on capacity expansion in curtailed regions, Green Certificate Scheme, guaranteed utilization hours for windfarms, restrictions on coal-based power plants, etc.], along with a strong power demand recovery backed by a recovering economy, is expected to bring under control the windpower industry’s most critical problems of curtailment and overcapacity, resulting in higher utilization and profitability for the windpower producers. Based on such favorable prospects for both the company and the industry, along with attractive valuation metrics, we believe that CRE is at an inflection point and poised for a strong performance.
Analyst: Ajeya Patil

We believe that CRE is clearly misunderstood as accounting standards require the company to report the results of its most profitable windfarms below the operating income line, masking the true profitability of the company. As a result, the company continues to trade at extreme deep value levels of 0.36x P/B, 4.3x EV/EBITDA and 7.1x 2018E P/E. With a strong pipeline of projects, the company is expected to grow rapidly over the next few years. The Henan Songxian windfarm, which will commence operations early next year, is expected to add more than 80% to the top-line and more than 50% to the bottom-line of the company. The various supply-side reforms underway in China [including rollout of new UHV transmission lines, restriction on capacity expansion in curtailed regions, Green Certificate Scheme, guaranteed utilization hours for windfarms, restrictions on coal-based power plants, etc.], along with a strong power demand recovery backed by a recovering economy, is expected to bring under control the windpower industry’s most critical problems of curtailment and overcapacity, resulting in higher utilization and profitability for the windpower producers. Based on such favorable prospects for both the company and the industry, along with attractive valuation metrics, we believe that CRE is at an inflection point and poised for a strong performance.
Analyst: Ajeya Patil

China Renewable Energy Investment: Initiating Coverage