Original-Research: Cloudberry Clean Energy ASA (von NuWays AG): Buy

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Original-Research: Cloudberry Clean Energy ASA - from NuWays AG

02.09.2024 / 09:01 CET/CEST

Dissemination of a Research, transmitted by EQS News - a service of EQS

Group AG.

The issuer is solely responsible for the content of this research. The

result of this research does not constitute investment advice or an

invitation to conclude certain stock exchange transactions.

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Classification of NuWays AG to Cloudberry Clean Energy ASA

Company Name: Cloudberry Clean Energy ASA

ISIN: NO0010876642

Reason for the research: Update

Recommendation: Buy

from: 02.09.2024

Target price: NOK 19.00

Target price on sight of: 12 months

Last rating change:

Analyst: Christian Sandherr

Forming a new digital player in the power market

Topic: Cloudberry (alongside Elmera and Småkraft) is investing in

Kraftanmelding, a leading provider of digitalization solutions for

run-of-river power production. Cloudberry's shares remain undervalued.

Kraftanmelding focuses on automating tasks within the hydro industry to

improve an asset's return. This includes automatically generating

electricity certificates and guaranteeing their origin, an automated power

trading system, data collection for settlement management and minimum water

flow logging.

As part of the deal, Cloudberry will transfer Captiva's digital business

(data-driven analysis and improvement of assets) to Kraftanmelding, while

Elmera and Småkraft provide NOK 20m of equity to fund additional growth

(larger customer groups and international expansion). With this,

Kraftanmelding will be owned by Elmera (34%), Cloudberry (32%), Småkraft

(8%) and the founders and employees (27%).

We regard this as a sensible move, as it puts Cloudberry at the forefront of

the digital transformation of the industry and provides the company with

plenty of data to further improve its own asset.

We confirm our BUY rating with an unchanged NOK 19 PT based on SOTP as the

company remains attractively priced despite the recent strong share price

development. Why to own the stock:

* Undemanding valuation. At around NOK 13/share, Cloudberry continues to

trade below its own book value, which stands at roughly NOK 16.5/share.

At the same time, the company offers a strong balance sheet with

relatively low debt levels and some NOK 946m in cash.

* Plenty of hidden value within the balance sheet. At the end of June this

year and last, the company divested several hydro assets. Importantly,

the achieved valuations stood at 2.3x and 2x of the assets' book values.

Cloudberry still owns 22 further hydro assets. Taking into account the

remaining small scale assets (6 operations with 44 GWh energy

production, 4.8% of the current portfolio) and applying similar

multiples, the company could generate roughly NOK 390m.

* Accelerating portfolio growth. The current 277 MW production portfolio

is seen to grow to ~500 MW by mid 2026e. While 19 MW are already under

construction, a final investment decision on its 140 MW PV project

should be made as early as this year. The development backlog comprises

additional 733 MW, which could also be sold. If sold, the dev. backlog

alone could be worth ~NOK 550m, eNuW.

You can download the research here: http://www.more-ir.de/d/30683.pdf

For additional information visit our website: www.nuways-ag.com/research

Contact for questions:

NuWays AG - Equity Research

Web: www.nuways-ag.com

Email: research@nuways-ag.com

LinkedIn: https://www.linkedin.com/company/nuwaysag

Adresse: Mittelweg 16-17, 20148 Hamburg, Germany

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Diese Meldung ist keine Anlageberatung oder Aufforderung zum Abschluss

bestimmter Börsengeschäfte.

Offenlegung möglicher Interessenskonflikte nach § 85 WpHG beim oben

analysierten Unternehmen befinden sich in der vollständigen Analyse.

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1979091 02.09.2024 CET/CEST

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