Cenkos: Vianet Group Plc -- Rebound and path to sustained growth

Smart Machines is trading above FY20A levels, as investment in technology and sales resource has driven material new contract wins. Smart Zones has rebounded as the rate of site closures has faded and new sales opportunities grow. Vianet is on track for shortly reaching pre-pandemic levels of profitability on a run-rate basis and surpassing it in FY24E. The share price should be trading close to 2019 levels implying 100%+ upside.

Cenkos: Vianet Group Plc -- Building sales momentum

The strength of re-opening from Q2A onwards has extended through H2E and Group earnings will be in line with expectations. Higher component costs are a feature of the technology market and artificially high prices will curtail a dividend until they recede. While we are yet to initiate a forecast for the new fiscal year, the current trajectory suggests the Group could achieve pre-pandemic run rate profitability within 6-12 months.

Cenkos: Vianet Group Plc -- Strong rebound

With Q2 stronger than Q1, the exit run rate and momentum from H1A suggests Vianet is on track to meet our forecasts. New Contactless sales are above pre-pandemic levels at Smart Machines and there are greenfield opportunities opening up at Smart Zones. The Group is on track to reach pre-pandemic profitability in early 2023 and grow steadily thereafter.

Cenkos: Vianet Group Plc -- Reopen

Both divisions have traded strongly in H1E. Almost all Smart Zones sites are now operational and the recovering momentum at Smart Machines continues. With a stronger Q2E and improving outlook thereafter, a sequential recovery profile is consistent with our expectations of an H2E weighted FY22E. Depending on cash flow and debt levels, management hopes and expects to return the company to dividend paying status in July.

Cenkos: Vianet Group Plc -- Forecasting the recovery

The robustness of the operating model and management's action to support customers and manage the cost base led to Vianet generating positive operating cash flow in FY21A. There is a strong pathway to recovery but the full extent is somewhat caveated on a full reopening profile that is yet to be confirmed. We are forecasting the Group to be free cash flow positive this year and see upside in the price as new order momentum returns.

Cenkos: Vianet Group Plc -- The reopening v2.0

Trading in H2 was better than H1A, albeit by a small margin, despite a more restricted trading period for its customer base as a result of the Government's policy of enforced lockdowns. Continued investment in the business we believe will see net debt slightly higher at the full year but this leaves the business very well placed to capitalise on opportunities in both existing and new markets.

Cenkos: Vianet Group Plc -- Strong runway to recovery

We believe Vianet has sufficient cash resource to see it through into a post COVID-19 vaccine world. The new lockdown measures may impact profitability and cash flow in H2 but probably not worse than that seen in the interim results. While our forecasts remain withdrawn, the balance sheet shows demonstrable strength which should encourage investors and we reinstate our recommendation at Buy.

Cenkos: Vianet Group Plc -- The reopening

The Smart Zones customer base is expected to reopen, to a large extent, this weekend. The reopening of pubs will bring forward a revised billing profile and markedly improve the Smart Zones revenue base. Smart Machines continues to operate profitably and the group's Business Interruption Loan should buttress the balance sheet through this year. While our forecasts remain withdrawn we can see an encouraging pathway to normalised trading next year.

Cenkos: Vianet Group Plc -- Leading the return to normal

Entering the new fiscal period, the majority of Smart Machines units are operating as normal. The Smart Zones customer base has largely contracted to remain live and connected, albeit at a reduced unit rate. Vianet has received a business interruption loan and is adequately financed well into next year. By then it is anticipated that trading will have normalised. Our forecasts remain withdrawn for now.

Vianet

FY20 results: low visibility, withdrawing rating

Cenkos: Vianet Group Plc -- Forecasts withdrawn

The prospective 2020E results will show good growth and cash generation but the last few weeks of the fiscal period were negatively impacted by COVID-19 pub closures. This limited access for new installations and technology upgrades in March and we anticipate these conditions will continue into the new fiscal period. We withdraw our forecasts and place our recommendation under review until macroeconomic conditions stabilise.

Vianet

COVID-19 Trading Update

Cenkos: Vianet Group Plc -- Growth and momentum as contracts come through

The organic growth rate and progress seen in the interim period is underpinned by the meaningful contracts signed over the last couple of years. The stock price rise is beginning to discount this growing momentum and we see further upside potential for the share price from multiple expansion and continued organic earnings growth.

Vianet

Interim Results

Small Cap Feast

African Export-Import Bank a supranational financial institution w hose purpose is to facilitate, prom ote and expand intra- and extra- African trade, of its potential intention to publish a registration document, the Bank hereby confirms its intention to proceed with an Initial Public Offering. The GDRs are expected to be admitted to the standard listing segment of the Official List of the FCA and to trading on the Main Market of the LSE. DNEG Limited intends to apply for adm ission of its Sh

Finals, ahead of expectations

Volex has delivered final results that are ahead of expectation. Organic revenue growth of 19% reflects growing customer demand, alongside a particularly strong performance in EV which saw sales almost double. The Group has demonstrated its ability to manage both supply chain challenges and inflationary cost increases, albeit with a short time lag. Recent acquisitions have integrated well, building exposure to attractive higher growth market segments. The Group’s global footprint has resonated w

AFC Energy (AFC LN) - Kier agreement

AFC has signed an agreement with another leading UK construction/infrastructure player, this time in Kier Group. We believe this further endorses our long term thesis that AFC will play an active role in encouraging the transition away from diesel-fuelled temporary power solutions. We believe its technology could help the sector make clear strides towards a net zero future, which has to commence now if they are to reach this target by 2045. The share price has been weak of late (in line with man

AFC Energy (AFC LN) - A year of deployment

Interim results from AFC contain few surprises and the group remains on track for the full year. The two main deltas versus our (unpublished) forecast were that the £2m stage payment from ABB were treated as deferred income rather than as revenue and that income from R&D tax credits was below our estimate. The first issue is an accounting issue which has no bearing on cash flow, while the second is likely a timing issue. On its own, the tax issue explains why period end cash, at £48.6m, was £1m

Cenkos: Healthcare Sector - Ward Round

Weekly round-up of AIM-listed healthcare news. Venture Life Group, GENinCode, Kromek, Alliance Pharma, Polarean Imaging, Benchmark Holdings, Ondine Biomedical, Verici Dx, Faron Pharmaceuticals, Avacta Group, Abingdon Health, Open Orphan, Belluscura, Hutchmed (China), Oxford Biodynamics

ITM Power - Trading update

Trading update

SHORE CAPITAL - Judges Scientific (JDG) - House Stock at 6860p

SIMEC Atlantis - A Clear Path Forward

SIMEC Atlantis’ full year statement and in particular its going concern statement show that financial risks remain following the decision not to proceed with the Uskmouth conversion. Yet the company has created a path through these risks with the creation of the 240MW Uskmouth battery project and further opportunities at the MeyGen tidal stream project. With MeyGen seeing the immediate benefit of an additional turbine in the water we see the current year as being a better one for the company.

Hybridan Small Cap Feast 28/06/2022

Joiners: No Joiners Today. Leavers: Raven Property Group has left the Main Market. What’s cooking in the IPO kitchen? Immediate acquisitions (IME.L) is to re-join AIM via a Reverse Takeover of Fiinu Holdings Limited. Once complete the Company is proposing to change its name to Fiinu Group plc. Fiinu intends to be a provider of a consumer banking product, the Plugin Overdraft ®, which is designed to provide customers with an overdraft facility without having to change their current account or req

Symphony Environmental (SYM LN) - Supply agreement with major customer

SYM has announced an exclusive supply agreement for its d2p (designed-to-protect) antimicrobial technology with a major customer. Grupo Bimbo (NASDAQ: BIMBOA) is one of the largest bread manufacturers globally. The company has conducted extensive trials of d2p for its plastic bread packaging, with the aim of extending the life of products, improving hygiene, and reducing waste. The company has asked SYM to supply d2p for its nominated bread packaging manufacturers across the American continent f

Powerhouse Energy - Full Year Results Reflect Progress

Powerhouse’s full-year results reinforce a picture of strong progress with considerable development of both the company and initial waste to hydrogen projects using the DMG technology. This is reflected financially, and cash burn is manageable with £9.8m of cash at the period end.

ATOME Energy - Capacity Expansion in Paraguay

ATOME’s trading update shows capacity expansion in Paraguay and good progress across the portfolio. The new capacity adds 50MW to take the Itaipu project to 300MW and increases our central case valuation to 183p from 173p.

Cenkos: Oil & Gas Sector -- Chariot, Wentworth Resources, Jadestone Energy, IOG, Reabold Resources, Union Jack Oil, Hartshead Resources, Southern Energy, Zephyr Energy, ADM Energy, Lamprell, Gulf Keystone Petroleum, TransGlobe Energy, Phoenix Global Resour

Oil posted its first back-to-back weekly loss since early April as fears of a demand-sapping global recession and tighter US monetary policy ripped through commodity markets to spur a broad sell-off. West Texas Intermediate fell 1.7% for the week to settle at $107.62. US Federal Reserve Chair Jerome Powell's hawkish testimony to Congress earlier in the week overshadowed a fundamentally tight market. Prices clawed back some of the week's losses Friday as the University of Michigan's final June

Judges Scientific (JDG) – Acquisition of minority shareholding in Bordeaux

The shares now trade on 24.3x FY2022E earnings, versus a peer group trading on a blended 24.9x. Judges' shares more than regained their composure in early 2022, before events in Ukraine and continued Covid concerns (notably China) weighed on sentiment. As a result, some treading of water is likely in our view. But given the strength of the business (we believe earnings risk is towards the upside) and balance sheet, the quality of earnings and the company's continued ability to execute deals on s

Hybridan Small Cap Feast 27/06/22

Joiners: No Joiners Today. Leavers: No Leavers Today. What’s cooking in the IPO kitchen? Immediate acquisitions (IME.L) is to re-join AIM via a Reverse Takeover of Fiinu Holdings Limited. Once complete the Company is proposing to change its name to Fiinu Group plc. Fiinu intends to be a provider of a consumer banking product, the Plugin Overdraft ®, which is designed to provide customers with an overdraft facility without having to change their current account or request an overdraft from their

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