And on we go after a brief break with one other contemporary 15 Norwegian shares, chosen by the Google Sheets random generator. This time, I’ve recognized six corporations that go onto the preliminary watch record. Let’s go:
Instabank is a 50 mn EUR market cap “totally digital financial institution that provides mortgage merchandise, financial savings and insurance coverage to shoppers in Norway, Sweden and Finland.” The corporate was IPOed in 2022 and surprisingly trades barely above its IPO value, a transparent exception for the 2020/2021 IPO classic.
Equally shocking is the truth that a comparatively younger “digital financial institution” makes a revenue. They appear to lend to extra “excessive yielding” clients however total, they present first rate development and the inventory seems to be low-cost at 8x trailing earnings and ~6,5x 2023 earnings.
Though I’m not a giant fan of Nordic banks, I feel this one is price to doubtlessly “watch”.
107. GNP Power
GNP Power is a 19 mn EUR market cap Power firm that has misplaced greater than 50% since its IPO in 2020. I additionally discovered little or no tangible info on this one. “Cross”.
108. Wilh. Wilhelmsen
Wilh. Wilhelmsen is a 1 bn EUR market cap “international maritime industrial group providing ocean transportation and built-in logistics providers for automobile and ro-ro cargo. It additionally occupies a number one place within the international maritime service trade, delivering providers to some 200 shipyards and 20 000 vessels yearly.”.
Taking a look at the long run chart, it appears that there’s important cyclicality in Wilhelmsen’s enterprise:
The shares presently commerce at a historic excessive and on avery low P/E a number of. The P&L just isn’t straightforward to learn as nearly all of web revenue comes from non-consolidated JVs. My intestine feeling tells me that coming into on the prime of the cycle won’t be a sensible thought, nevertheless they appear to be very lively in supporting the offshore wind trade. Due to this fact I’ll put them on “watch”.
109. Austevoll Seafood
Austevoll is a 1,6 bn EUR fish farmer, which in comparison with the opposite fish gamers to date, is a really established participant. Taking a look at the long run chart we see a comparatively good worth creation, however fairly some volatility:
The inventory seems to be fairly low-cost at 8x 2023 earnings, however they make use of fairly some leverage. I feel they had been additionally hit by the suprse Norwegian Particular tax for Salmon fsih farmers. Total, this may very well be one of many fish farms the place one may study one thing, subsequently they go on the preliminary “watch” record.
110. Tysnes Sparebank
Tysnes is a 20 mn EUR native financial savings financial institution, which, not surprisingly is situated in Tysnes close to Bergen. The inventory seems to be low-cost, however regional financial savings banks usually are not my specialty, subsequently I’ll “cross”.
Salmar, with 5,5 bn EUR market cap appears to be one of many “bigger fish” among the many Norwegian fish farms. The long run share chart seems to be spectacular, regardless of the apparent hit from the particular tax:
Nonetheless, the valuation at 17,5x 2023 earnings appears to replicate this already to a sure extent. Curiously, Salmar holds a 71% curiosity in one other listed Norwegian firm referred to as Froy which appears to be a specialist in servicing fish farms. In keeping with the This fall report, they appear to ponder promoting Froy
Total, Salmar can be an organization which may very well be fascinating to “watch” as their observe document appears to be actually god.
As a one time excepion, I comply with up with Froy, a 475 mn market cap inventory through which Salmar holds a 72% stake. Froy was IPOed in 2021 and its share value went on a reasonably wild journey:
In keeping with their preliminary investor presentation, Froy appears to be a vital service supplier to the fish farming trade, offering all form of important providers with a give attention to Norway:
I suppose that their give attention to Norway led to the numerous loss within the share value follwoing the surpise tax on Norwegian Slamon farming final years.
As talked about within the Salmar write-up, Salmar appears to be contemplating “strategic choices” for Froy no matter which means. In any case, I discover Froy fascinating, even though it’s not low-cost at 18,5x 2022 earnings. “Watch”.
Okea is a 250 mn EUR market cap firm that owns minority curiosity in a number of Norwegian off shore oil fields.
They appear to specialize on mature oil fields and attempt to lengthen the life of those fields.
The corporate was IPOed in 2020 and the share value has been fluctuation widly between 10 andf 70 NOKs:
As many oil shares, the inventory seems to be ridicuolosly low-cost at round 2,4x trailing P/E and a giant juicy dividend. Nonetheless there appears to be clearly a robust leverage to grease costs which are actually declining for some months. In some way I nonetheless discover them fascinating bexause of their foucs on Norway, subsequently they go on “watch”.
Techstep is a 37 mn EUR market cap firm that appears to hav had its greatest time within the early 2000s, though the present enterprise mannequin appears to have impmented solely in 2016. The corporate appears to supply some cell providers, however solely achieved to have a optimistic working end in 2 out of the final 6 years. “Cross”.
115. Sparebanken 1 Helgeland
It is a 324 mn EUR market cap regional financial savings financial institution that appears fairly profitable- The inventory has carried out fairly welll because the GFC and isn’t too costly (P/E ~10,5). Nonetheless. native banks are out of scope for me, “cross”.
Agilyx is a 228 mn EUR market cap firm that’s lively in chemical plastics recycling. As a 2020 IPO, the inventory trades across the IPO value, which could be thought-about a succes for this classic.
As one can anticipate from a younger cleantech firm, they’re loss making, though they do have gross sales, presently a run price of 15-20 mn EUR. Nonetheless gross margins are detrimental in the meanwhile and they’re burning money.
The principle shareholder is a fund referred to as “Saphron Hill Ventures” and as many such corporations they’ve a powerful record of strategic companions (Exxon and so forth.). They appear to function a JV with Exxon within the US referred to as Cyclix, that recycles plasticand one other venture appears to be in development in Japan
Plastic recycling is an fascinating subject, nevertheless a negativ gross margin actually turns me off, subsequently I’ll “cross”.
117. Aurskog Sparebanken
Aurskog is a small, 89 mn EUR market cap native financial savings banklocated in Aurskog close to Oslo with no particular points at a primary look. “Cross”.
SATS is a 110 mn EUR market cap health chain that’s lively throughout Scandinavia. The corporate IPOed in 2020 and misplaced round -75% since then, indicating that not all is nice.
The principle motive is perhaps that since their IPO, they haven’t been in a position to genrate a revenue. The corporate has important debt, though they managed to decrease the debt burden over the previous 3 years.
Due to mortgage covenants, the corporate just isn’t allowed to distribute dividends and This fall 2022 was not nice, more than likely resulting from electricty and heating prices.
At an EV/EBITDA of ~5,5 this is perhaps fascinating for turnaround specialists, however for me the chance is far too excessive, therfore I’ll “cross”.
119. Nykode Therapeutic
Nykode is 570 mn EUR market cap “clinical-stage biopharmaceutical firm, devoted to the invention and growth of vaccines and novel immunotherapies for the remedy most cancers and infectious ailments. Nykode’s modular platform expertise particularly targets antigens to Antigen Presenting Cells.” Nykode was solely worthwhile in its IPO yr 2020 and has been making losses in 2021 and 2022.
So far as I perceive, they’re utilizing a unique expertise to MRNA, however they’ve some fascinating cooperations and Money ought to final for a few years. Nonetheless, Biotech is way out of my circle of competence, subsequently I’ll “cross”.
120. Wallenius Wilhelmson
By coincidence, this 3 bn EUR market cap firm has been chosen in the identical a part of the sequence as Wilhelm Wilhemsen. And certainly, the businesses are associated as Wallenius Wilhelmsen appears to be a JV between Wallenius and Wilhelmsen, specialising in proudly owning and working ships that transport vehicles.
As different delivery corporations, the inventory did fairly properly, doing ~11x because the backside in MArch/April 2020. The inventory seems to be actually low-cost at a P/E < 5, however shopping for cyclical shares on the margin peak is never entry level. As I’ve Wilhelm Wilhelmson already on watch, I’ll “cross” right here.