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Water Tower Research

Water Tower Research is a leading equity research firm that provides research on micro, small and mid cap companies.

Water Tower Research was founded by Wall Street veterans after witnessing a fundamental shift in the investment research industry with the result being a declining knowledge base among investors, a lack of awareness and a shrinking pool of fundamental research being conducted on companies across the small-cap and micro-cap spectrum. The same issues are now increasingly occurring in the mid-cap space. This sea change within the investment community is impacting not only the companies themselves but also current shareholders and potential investors. With significantly less active sell-side sponsorship by Wall Street, a substantial information gap has developed between companies and various constituents in the financial community. The net result is fewer channels for insight and information to flow between companies and investors.

Research from Water Tower Research

Equity Research Firm

Thematic (Sector/Industry)

Multiple Countries / Thematic (Sector/Industry)

SUMMARY
Last Week’s Research
Aqua Metals, Inc. (AQMS)

1Q22 Results: Positive Momentum with Li-ion Battery Recycling; Key Metals Produced From Black Mass

EVmo, Inc. (YAYO)

Fireside Chat Highlights – Building Customer Demand Ahead of Fleet Growth

Previous Research
Electrovaya, Inc (EFL)

Dr. Sankar Das Gupta: Electrovaya's Disruptive Battery Technology, Strong Growth Prospects, and IP
Powering Ahead With Lithium-Ion Batteries For Material Handling and Electric Vehicles

EVMO, Inc. (YAYO)

Positioned For Growth—A “Pick and Shovel” Play On the Rapidly Growing Rideshare/Gig Market

SES AI Corp. (SES)

Driving Ahead With Commercial Scale Proprietary Li-Metal Battery Solutions For Electric Vehicles
COO Rohit Makharia Discusses Key Milestones and Drivers Behind SES's Unique Li-Metal Technology and the Drive Towards Commercialization
Shareholder Letter—Confident of the Business Plan and Aiming to Achieve Key Milestones in 2022

Crown Electrokinetics (CRKN)

Looking Through the Window Into Smart Glass Solutions For The Commercial Retrofit Market
Company’s Office Building IP Portfolio Worth $94.4 Million as Assessed by a Third-Party Report

INDEX STATISTICS



ABOUT THE WTR INDEX
The WTR Sustainable Investing Index is built on 150 companies in four primary segments with multiple sub-sectors: 1. Energy Technology (including Power Generation, Hydrogen &amp; Fuel Cell, Energy Storage, and Lithium Supply Chain); 2. Modern Mobility (Advanced Motive, EV Charging, Smart Driving); 3. Industrial ClimateTech; 4. Smart Buildings. The index monitors share price performance, valuation metrics, and consensus estimates. Our weekly reports also cover industry activity and news flow.
SUMMARY

WTR Sustainable Index: During the week ended April 29, 2022, the WTR Sustainable Index underperformed the broader market, falling 10.3% W/W versus the S&amp;P 500 Index (down 3.3 %), the Russell 2000 index (down 3.9%), and the Nasdaq Composite Index (down 3.9%). Modern Mobility saw the largest underperformance last week, down 12.0%. Other sub-sectors performance also underperformed—Energy Technology was down 4.7%, Industrial ClimateTech was down 3.6%, and Smart Buildings down 3.5%.
Valuation: Based on forward 12-month consensus estimates, the current P/E ratio of the WTR Sustainable index is 24.6x vs. 17.8x for the S&amp;P 500.
Consensus estimates changes: During the week ended April 29, 2022, there were&nbsp;increases&nbsp;in 2022 revenue estimates for three companies each in Modern Mobility and Smart Buildings and two in Industrial ClimateTech. There were&nbsp;decreases&nbsp;in 2022 revenue estimates for one company each in Modern Mobility and Smart Buildings. Seven companies (one each in Energy Technology and Industrial ClimateTech, two in Modern Mobility and three in Smart Buildings) saw&nbsp;increases&nbsp;in 2022 EPS estimates, while six companies (two each in Energy Technology, Modern Mobility and Smart Buildings) saw decreases in 2022 EPS estimates.

SHARE PRICE PERFORMANCE SUMMARY
Share Price Performance
INVZ shares were up 37% following news of order from one of the largest vehicle manufacturer. VIHD shares were down 37% due to profit booking.




Consensus Estimates
Figures 7-8 show W/W changes in FY22 revenue and EPS estimates for selected companies in the WTR Sustainable Index. For the week ended April 29, 2022, there were eight increases and two decreases in FY22 revenue estimates, and seven increases and six decreases in FY22 EPS estimates.
Figures 9-10 show the number of companies with W/W changes in consensus revenue and EPS estimates by sub-sector for FY22E.


















KEY INDUSTRY AND COMPANY NEWS OF THE WEEK
Energy Technology
Biden Order to Boost Mining May Not Have Quick Payoff
https://fortune.com/2022/04/30/biden-order-boost-mining-may-not-have-quick-payoff/
President Joe Biden is turning to a Cold War-era law to boost production of lithium and other minerals used to power electric vehicles, but experts say the move by itself is unlikely to ensure the robust domestic mining Biden seeks as he promotes cleaner energy sources. Biden's action, part of his efforts to find alternatives to fossil fuels and combat climate change, does not waive or suspend existing environmental and labor standards, the White House said. Nor does it address the chief hurdle to increased domestic extraction of so-called critical minerals: the years-long process needed to obtain a federal permit for a new mine. Even so, the mining industry and supporters in Congress cheered Biden’s use of the 1950 Defense Production Act to increase US supplies of lithium, nickel, and other minerals needed for electric-vehicles batteries and other clean-energy technology.
US Plans Campaign to Attract Russian Scientists, Engineers to America
https://sciencebusiness.net/news/us-plans-campaign-attract-russian-scientists-engineers-america The Biden Administration is planning a campaign to attract Russian scientists and engineers to the US, in an effort to further weaken Russia’s science and technology base. It also plans to help Russian physicists at the CERN nuclear lab continue working there, rather than return home when their normal visas expire, if they wish. The plan, first reported April 29 by Bloomberg News and confirmed to Science | Business, is part of a $33 billion supplemental spending bill for the Ukraine war that President Biden sent to Congress 28 April, officials said. The legislation includes language that would permit technically qualified Russians with masters or doctoral degrees in a range of fields to immigrate to the US without the usual visa requirement that they have a job lined up in advance. They would have to pass a US security background check. And for Russians working at CERN, the world’s premier high-energy physics lab near Geneva, the US in consultation with other G7 countries plans to help them keep working there if they want – including the possibility of having US scientific organizations hire them directly. It wasn’t immediately clear whether similar provisions would apply to Russians working at other major Western laboratories. The initiative is the first major step by the White House to extend the war to include scientific and technical talent. One official likened it to Operation Paperclip, a then-secret US programme from 1945 to 1959 that transported more than 1,600 Nazi-era German scientists and engineers to the US for employment at American labs. They included famed rocket engineer Wernher von Braun and Kurt Debus, later the first director of the Kennedy Space Center. The effort helped fuel the Cold War, as Russia had a similar German talent programme.
Modern Mobility
WeRide Launched Fully Autonomous Sanitation Vehicle Fleet in China
WeRide Launched Fully Autonomous Sanitation Vehicle Fleet In China (carnewschina.com)
WeRide, a level 4 autonomous driving technology company, has launched China’s first mass-produced fully driverless sanitation vehicles known as the Robosweeper. The vehicle was jointly designed and produced by WeRide and the Yutong Group for cleaning public roads. A fleet of more than 50 units of the Robosweeper will conduct a public road test in the Nansha District of Guangzhou starting in May. In the driverless mode, the vehicle can conduct various cleaning operations including road cleaning, water spraying, and disinfecting. The spraying and disinfecting functions have been added to help cities better cope with the pandemic. Furthermore, WeRide has developed a cloud control platform for its fully unmanned sanitation vehicle. The platform can autonomously view the operation routes, automatic driving status in real time, conduct remote vehicle task scheduling, and manage routes. Furthermore, it can conduct automatic charging and routine maintenance tasks including refill water and discharge sewage without human intervention.
USA: ChargePoint Opens New United Power EV Charging Station
https://www.petrolplaza.com/news/29832
ChargePoint and United Power celebrated the opening of its third public electric vehicle fast charging station with a ribbon cutting event last week. The newest charging station in the cooperative’s network is located at its Carbon Valley, Colorado, office along Interstate 25, just south of Longmont, and fills a 30-mile gap in available charging options between Thornton and Loveland. “Nearly 5,000 United Power members own electric vehicles. We stand committed to strategically deploying a charging network capable of supporting our members and the thousands of others who commute daily throughout our territory,” said Mark A. Gabriel, President and Chief Executive Officer of United Power. The charging station at United Power’s Carbon Valley Service Centre is a 62.5 kW direct current fast charger available for anyone who has set up a ChargePoint account. Individuals may create an account using ChargePoint’s mobile app or an activation card available through the mail. The charging station was installed with the help of a grant from Tri-State Generation &amp; Transmission.
Smart Buildings
Smarter, Greener Buildings: IoT to Revolutionize Energy Consumption
https://www.iotforall.com/smarter-greener-buildings
Smart building technology is picking up at a rapid pace, driven by a global need for increased sustainability, decreased waste, and more efficient use of resources. Smart buildings leverage the technological advancements of the internet of things (IoT) to manage assets, resources, and services efficiently, improving building operations, energy consumption, and resource management along with the overall resident experience. With buildings responsible for a staggering 38 percent of global CO2 emissions and 40 percent of US energy consumption, remodeling buildings’ energy consumption and sustainability are paramount to meeting global climate goals. This priority has already been made clear by the Biden administration, who announced the Buildings Performance Standards Coalition in January, a first-of-its-kind partnership between 33 state and local governments dedicated to delivering cleaner, healthier, and more energy-efficient buildings.
Smarter Buildings – Hand in Hand with Protecting the Climate
https://modbs.co.uk/news/fullstory.php/aid/19847/Smarter_Buildings__96_hand_in_hand_with_protecting_the_climate.html
Post-pandemic life is still uncertain. Priorities have changed and targets shifted. New and flexible forms of work (“New Work”) as well as the growing importance of employee satisfaction present companies with new challenges. Buildings nowadays are also measured by whether they provide a productivity-enhancing and inspiring environment. Leighton James, Product &amp; Marketing Director, TRILUX and Alex Klein, Director of Sales, wtec tells us more. We know that the built world is evolving, and that change is accelerating. From the footprint buildings leave on the planet to the space they offer for us to collaborate and their ability to help us feel safe, buildings have never been more critical. Smart buildings are both more sustainable and more economical in operation due to their technical equipment.
Industrial ClimateTech
US Startup Raises $4.2 Million to Make Affordable Green H2 for Heavy Industry
https://www.saurenergy.com/solar-energy-news/us-startup-raises-4-2-m-to-make-affordable-green-h2-for-heavy-industry
Advanced Ionics, a US-based provider of next-generation industrial electrolyzers that can produce green h2 for less than $1/kg, has announced the closing of its initial financing of $4.2 million led by Clean Energy Ventures, a venture capital firm funding early-stage climate tech innovations, with participation from SWAN Impact Network. “By requiring significantly less electricity than other electrolyzers, Advanced Ionics uses low-cost renewables or nuclear energy to produce green hydrogen for less than the current cost of fossil fuel-derived hydrogen. With the funding, Advanced Ionics will accelerate its product development roadmap and scale-up, and implement pilot projects with customers,” states the company.
WTR SUSTAINABLE INDEX CONSTITUENTS


Source: Thomson Reuters
Figure 24: Modern Mobility Comp Table


Source: Thomson Reuters
Figure 25: Industrial ClimateTech Comp Table

Source: Thomson Reuters
Figure 26: Industrial Cleantech Comp Table

Source: Thomson Reuters
DISCLOSURES

Water Tower Research (“WTR”) is a professional publisher of investment research reports on public companies and, to a lesser extent, private firms (“the Companies”). WTR provides investor-focused content and digital distribution strategies designed to help companies communicate with investors.  WTR is not a registered investment adviser or a broker/dealer nor does WTR provide investment banking services. WTR operates as an exempt investment adviser under the so called “publishers’ exemption” from the definition of investment adviser under Section 202(a)(11) of the Investment Advisers Act of 1940. WTR does not provide investment ratings / recommendations or price targets on the companies it reports on. Readers are advised that the research reports are published and provided solely for informational purposes and should not be construed as an offer to sell or the solicitation of an offer to buy securities or the rendering of investment advice. The information provided in this report should not be construed in any manner whatsoever as personalized advice. All users and readers of WTR’s reports are cautioned to consult their own independent financial, tax and legal advisors prior to purchasing or selling securities.  Shawn Severson and Graham Mattison who are the writers of this report, covers the BioEconomy, Emerging Growth &amp; Special Situations, ClimateTech &amp; Sustainable Investing, and Industrial Technology sectors for WTR. Mr. Severson and Mr. Mattison including members of their household have no personal or business-related relationship to the subject company other than providing digital content and any ancillary services WTR may offer.  Unless otherwise indicated, WTR intends to provide continuing coverage of the covered companies. WTR will notify its readers through website postings or other appropriate means if WTR determines to terminate coverage of any of the companies covered.  WTR is being compensated for its research by the company which is the subject of this report. WTR receives no more than a maximum of $10,500 per month from a given client and is required to have at least a 6-month commitment. None of the earned fees are contingent on, and WTR’s client agreements are not cancellable for the content of its reports. WTR does not accept any compensation in the form of warrants or stock options or other equity instruments that could increase in value based on positive coverage in its reports.  WTR or an affiliate may seek to receive compensation for non-research services to covered companies, such as charges for presenting at sponsored investor conferences, distributing press releases, advising on investor relations and broader corporate communications and public relations strategies as well as performing certain other related services (“Ancillary Services”). The companies that WTR covers in our research are not required to purchase or use Ancillary Services that WTR or an affiliate might offer to clients.  The manner of WTR’s research compensation and Ancillary Services to covered companies raise actual and perceived conflicts of interest. WTR is committed to manage those conflicts to protect its reputation and the objectivity of employees/analysts by adhering to strictly-written compliance guidelines.  The views and analyses included in our research reports are based on current public information that we consider to be reliable, but no representation or warranty, expressed or implied, is made as to their accuracy, completeness, timeliness, or correctness. Neither we nor our analysts, directors, officers, employees, representatives, independent contractors, agents or affiliate shall be liable for any omissions, errors or inaccuracies, regardless of cause, foreseeability or the lack of timeliness of, or any delay or interruptions in the transmission of our reports to content users. This lack of liability extends to direct, indirect, incidental, exemplary, compensatory, punitive, special or consequential damages, costs, expenses, legal fees, losses, lost income, lost profit or opportunity costs.  All investment information contained herein should be independently verified by the reader or user of this report. For additional information, all readers of this report are encouraged to visit WTR’s website www.watertowerresearch.com.

Weekly Sustainable Investing Surveyor: Week Ended April 29, 2022