Wednesday, September 28

This has been the great year of BME Growth: investment opportunities

Looking at the economic and financial spheres, 2021 has been the great year of recovery. The appearance of vaccines, as well as their rapid evolution, helped stabilize the decaying situation that we had been dragging on since the beginning of 2020. In addition to the monetary and fiscal support measures that central banks and governments implemented to recover economic and financial activity.

However, we still suffer the important economic consequences that brought with it the pandemic and that were aggravated by restrictions on mobility and the stoppage of non-essential activities. Perhaps the most notable are the inflationary rebounds focused mainly on raw materials and energy, as well as mismatches in supply chains and shortages.

According to IMF October forecast, the world economy will grow by 5.9% in 2021 and by 4.9% in 2022, after the fall of 4.4% in 2020. For Spain, the IMF estimates an expected growth of 5.7% in 2021 and 6.4% in 2022. However, in recent quarters the recovery has been less than expected and GDP growth estimates for 2021 have been cut below 5%, maintaining growth for 2022.

Although it is true, the new Omicron variant has once again threatened the stability that had been achieved months ago, but the decrease in the number of deaths and the apparently increasingly mild symptoms give some respite to the situation.

If we turn our eyes to the stock market, the main world indices accumulate in 2021 increases of between 12% and 15.5% until last November.

Within the European Bags, the Ibex 35 is the furthest behind on the list with a yield of 2.9% until November. Some of the best numbers are for Switzerland (+ 13.6%), Belgium (+ 13.6%), Portugal (+ 10.9%), Germany (+ 10.1%) or the United Kingdom (+9.3 %).

Beyond the Ibex … How has the year been for BME Growth?

2021 has been a record year for both the BME Growth market and MARF. For its part, the Alternative Stock Market has incorporated 14 companies up to the month of November, reaching 127 companies with a capitalization of 18,579 million euros, almost 16% more than last year and more than double that of four years ago. Likewise, companies in this market have raised financing for 880 million euros, an increase of 79.4%.

For Fixed Income, MARF has far exceeded this year the barrier of 100 issuers, reaching 114. The volume of issues incorporated into this market until November amounted to 12,972 million euros, 53% more, with an outstanding balance of 9,776 million, which implies a growth of 86%.

The 127 companies that are currently established in the BME Growth market represent in large volume leading sectors that have been highly relevant in this recovery process. Among them are technology, health and biotechnology, engineering, telecommunications and renewable energy.

Best stocks of the year at BME Growth

There is no doubt that 2021 has been very significant for the Alternative Stock Market as well as for each of the companies that are part of it. However, certain companies have managed to overcome adversity and take advantage of opportunities much better than others, so that they end the year with a positive appreciation.

Shares with an appreciation of more than 100%

Of the 127 companies mentioned above, five have managed to rise with the great victory this 2021 until they revalue above 100% (excluding SOCIMIs).

Aeternal Mentis tops the earnings of this 2021 with 543%. It is followed very closely by CATENON, which after 10 years as listed on this market, adds 514.29%. EiDF earns 353%, Parlem Telecom 148% and Endurance Motive more than 130%.

For its part, EiDF Solar has been one of the great additions of BME Growth this year. On its first day as a listed company, EiDF shares closed the session at 5,500 euros per share, a price that far exceeded when reaching 20 euros per share last November. Currently the value of its listing is around 19 euros per share and its capitalization is 258.71 million.

The current situation of the energy market It has had an impact on an increase in the demand for photovoltaic installations among companies. The high prices of electricity, which are expected to continue to rise in the marginalist market, has caused companies, regardless of their size or activity, to resort to self-consumption to reduce their energy costs. Added to this is the need to implement sustainability policies so that these same companies reduce their level of polluting emissions, fulfilling their ESG commitments.

The company’s position in the self-consumption sector has made EiDF register ongoing orders in the self-consumption area for a value of 110 MW, equivalent to an approximate amount of 65 million euros, to be executed in 2022. This is an improvement substantial compared to the revenue forecasts for the 2022 financial year included in the approved business plan for the next four years, “the EiDF forecast is to reach 224 million in turnover and an EBITDA of 26.4 million for next year”, declared Fernando Romero, CEO of EIDF Solar for Investment Strategies.

Another company that has been on the run to become part of the securities with an annual accumulated over 100% in the Spanish stock market has been Tier 1, within the ICT sector, which remains at the doors with a higher current revaluation 85% and a capitalization of 26.90 million euros. Also, the value of their titles is currently around 2.7 euros per share.

This technology company that went public in 2018, began trading continuously just a week ago. Last Wednesday, December 22, Tier 1 shares began to be traded in the general contracting modality, after the Tier1 Corporate Director, Eduardo Fuentesal, declared for Investment Strategies, that they were in constant dialogue with BME to To take this step, “I would like to know when we are going to go public because we have done practically everything in our power to start doing it.”

Values ​​with an annual accumulated over 50%

There are seven other companies that have fallen by the wayside and that, despite revaluing below 100%, are still a very good option when it comes to expanding our portfolio and whose revaluation is more than remarkable.

This is the case of Making Science, which adds 69.72%, followed by Clever Global with 63.33%, Commcenter advances 60% in the year, Holaluz and elZinc (Asturiana Laminados) with 56.72% and MioGroup and Medcom Tech close this list with a tight 50%.

As we mentioned before, 2021 has been an especially important year for the renewable energy sector, which has seen an increase in demand in the self-consumption sector in the face of the historical increases in electricity that continue to take place today. Holaluz, which has been able to take advantage of this situation, has carried out its first M&A operation just a few days ago, buying the 23,000 domestic clients of Blub Energy Spain.

Likewise, Carlota Pi, president of Holaluz, is sure that they have no rival thanks to their strategy called ‘The Revolution of the Roofs’, “gives us the possibility of offering a value proposition that no one has because all the energy that a family will have excess production on the roof, we can buy it at a value that no one else can buy. “

About this new year that begins, Carlota Pi is clear, “now we have tailwinds with European funds and all subsidies for both solar panels and chargers, batteries … and, therefore, we look to 2022 with a few very encouraging and very good numbers in terms of value generation. “

Other values ​​that say goodbye to the year in positive

Below the list, but always positive, we find the last 12 companies that close the year in green (excluding SOCIMIS).

This is the case of NBI Bearings (+ 32.81%), Euroespes (+ 30.10%), LLYC (20.87%), Proeduca Altus (+ 20.81%), Sngular (+ 17%), ALTIA ( + 13.79%), Griñó Ecologic (+ 13.46%), Atrys Health (+ 11.69%), SolarProfit (+ 6.30%), Pangea Oncology (+ 5%), Izertis (+ 4.24%), Alquiber (+ 2.04%) and CLERHP (+ 1.52%).

NBI Bearings has had a great evolution on the stock market. The share, which closed 2020 around 4 euros, reached its all-time highs last April with 7,400 euros at the close. Likewise, only in the first half of the year, NBI Bearings exceeded revenues by 143.5% compared to the same period of fiscal year 2020, reaching 11.5 million euros, according to the advancement of results.

On the other hand, we find a security that will soon cease to be part of this market, Atrys Health, which is already preparing its jump to the Continuous Market, which is expected to occur during the first quarter of 2022.

Atrys, which grew close to 12% in the year, already capitalized more than 610 million euros in the BME Growth market, just below Proeduca Altus, which increased 20.81% in the year and capitalized more than 813 million euros (excluding SOCIMIS). Since it began trading five years ago, the Atrys share has appreciated by nearly 600% and it has done so in a period in which the IBEX 35 has done so by just 2.4%.

Yesterday, Izertis announced the issuance of a new program of promissory notes in the Alternative Fixed Income Market (MARF) with a total maximum outstanding balance of 30 million euros as of December 28, 2022. This technology consultancy has already capitalized 184 million euros, “starting to be listed on BME Growth has allowed us to enhance the value of the company, strengthen our brand, attract the best talent and have access to new ways to finance our business development,” says Rafael Cavanillas, Director of Investor Relations and Business Development at Izertis.

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