tukkers schreef:
SNS over Innoconcepts
InnoConcepts (13.61), Rating: KOPEN, 2006E: 0.69 2007E: 0.84 2008E: 1.32
The facts:
Starts cooperation with Plastic Technologies and Carlsberg
Our analysis:
I-Pac, the 100% subsidiary of InnoConcepts is entering into a cooperation agreement with Plastic Technologies and Carlsberg with the aim of developing a new generation of beverage packaging. The aim is to use both I-Pac's patented technology as well as the specialist knowledge and technology of TEA in blow molding, which is used in the production of PET bottles, the most commonly used packaging for soft drinks, carbonated drinks as well as beer. Plastics Technologies is an engineering services organization with strong links to the PET industry and more specifically the beverage industry. It has offices in the USA and Switzerland and will provide the necessary support in product and material development as well as in testing and developing recycling technology.
Although Carlsberg is a global top 5 beer company it also sells other beverages in more than 150 countries, selling more than 80m PET bottles per day. On a stand-alone basis, the contract with Carlsberg could be commercially very interesting for all parties involved. However, the additional benefit to I-Pac is that if the project is successful and Carlsberg introduces several new packaging forms based on the I-Pac technology, Carlsberg will become an important reference client in the highly fragmented market for PET bottle production. I-Pac estimates that globally, the usage of PET bottles amounts to several hundred billion units per year.
Obviously, the whole process of design, testing and implementation in production will take time. As a result, we do not take into account any possible revenue from this contract until Q3/Q408 or possibly even FY09. But with Plastics Engineering providing the support and with a reference client like Carlsberg, I-Pac is off to a very good start in what could be an even more interesting market (blow molding) than the market in which it is currently active (injection molding).
Conclusion & Action:
The deal with Plastic Technologies and Carlsberg is very promising as it may allow InnoConcepts to enter the very attractive market for PET bottles used in beverage packaging. Carlsberg is a very good reference client while Plastic Technologies is a reputed player, providing the necessary support, which I-Pac is currently lacking itself. If successful, InnoConcepts will have lowered its risk profile (diversification) while at the same time opening up a new market with substantial potential for revenue generation. We maintain our BUY recommendation with a price target of EUR 20.50, leaving an upside of some 50%!