MBTN SW – Update – Decent J-Curve potential

*Looking to add towards the end of the rights issue subscription period that ends on the 9th November

*Terms are 7 for 20 at CHF 0.267 raising CHF 250m – trading period 1st November to 7th November, subscription period ends 9th November, new shares to trade 11st November

*Short interest around 30-35%

*We have seen a bit of volatility in the discount to terms the rights trade at – from terms to a 70bps discount

*Note the rights do not have a closing auction, goes into End of Trading Phase @ 17.15 CET / 16.15 UK.

*We like the stock fundamentally-  the strong technology and positioning of the company is in a niche part of the sector and this expansion plan will help them scale up – from time to time banks also publish some very bullish notes on them

*The raise will accelerate the expansion of its annual production capacity to about 3 GW – The proceeds will be used to raise the capacity for the production of solar cells at the site in Thalheim, Germany, and the production of modules at Goodyear, Arizona. The US facility is expected to deliver its first products in mid-2024.

*From a technical point of view the rights issue dynamics which add a load of short interest on the stock side through the subscription period we see this as potentially giving the stock boost as a nice J-curve type of trade – but very volatile

*In the past we have seen it ideal in these type of situation to  buy the last two days before the end of the subscription period and then potentially add on the rump placing – rump may according to the prospectus be sold at any time in open market or dribble-out, bookbuild or a combination – may not be sold below the offer price

*Looking at a quick and dirty comp valuation we get to a tp of CHF 0.55

BUY MBTN SW – Update – Solar powered numbers +11% ABS

Tuesday • 24 August 2021 • 09:54

*Results last week showed that the solar panels are sold out into 4Q and that earlier disclosed delays getting to full capacity is expected to be sorted by end September which we see as the next catalyst for the stock

*Jefferies reiterates its buy with a price target of CHF 0.8

*We continue to hold the position – our goal is to add to position over time as we have high conviction in the name.

*We see a 100-200% Upside from here

TRADING BUY: MBTN SW – Battered into numbers, remains a cheap renewable

Tuesday • 17 August 2021 • 16:46

*Earnings set for Thursday 19th August

*The company announced last week that its ramp-up of PV module production delayed by few weeks which has caused some weakness the last days along with the market sell-off – we believe this is only a minor set back

*We see a 100-200% Upside from here

Catalysts on our list:

*Tech is 30% better than competitors, Samsung out of the race – valuation extremely compelling with price target of CHF 1

*H2 they started production and the ramp up of this will be the next Catalyst

*Own company forecasts for 5 years values the company at CHF 1.4 – assumes half the current multiples in the sector and their WACC

*Goal is to add to position over time as we have high conviction in the name but not very liquid