Preliminary revenue forecast for IH'23
Novavis reported net sales of PLN 8.3mn in IH'23 (+1464% y/y), bringing those in Q2'23 alone to PLN 3.4mn (+820% y/y). Revenues realized in Q2'23 were 27% higher than our forecasts.
The reported revenues resulted from the execution of a development agreement with Iberdrola Renewables for development services of photovoltaic farm projects.
The company notes that the vast majority of realized revenues came from subsidiaries (special purpose vehicles for the preparation of photovoltaic power plant projects to reach construction-ready status - RTB status), due to the specifics of the development agreement. Cash flow received directly by Novavis from the investor in the form of advances for the acquisition of shares of selected SPVs amounted to EUR 1.6mn in IH’23.
OPINION: SLIGHTLY POSITIVE Preliminary published revenues for Q2'23 are 27% higher than our forecast. Higher revenues may also imply slightly higher-than-anticipated financial results, but the scale is currently difficult to determine. In our view, the acceleration in revenues and financial results will take place in late 2023/2024. In this document we are not changing our recommendation, forecasts, or price target for Novavis.
