GREY:XEBEQ - Post by User
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RandomMakeron Nov 18, 2020 9:15am
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Post# 31921069
TD Flash Note Equity Research
TD Flash Note Equity ResearchXebec Adsorption Inc. (XBC-V) C$5.80 Quebec Announces 2030 Plan for a Green Economy
Event The Quebec government announced several measures to combat climate change. Impact: POSITIVE Details: As it relates to Xebec, we note that the Quebec government announced a 2030 Renewable Natural Gas (RNG) target of 10%, adding to its previous target of having 5% of the natural gas grid comprised of RNG by 2025. The government also announced a $213 million investment in the financing of renewable natural gas production and distribution projects as well as $47.9 million in funding for hydrogen and bio energy research and development. TD View: As a Quebec-based company, we believe that Xebec will disproportionately benefit from these initiatives. We note that this is an opportunity for all three of Xebec’s operating segments, including Cleantech Systems (equipment manufacturing), Industrial Service and Support (maintenance services), and Infrastructure (build, own, operate). From a broader perspective, we continue to expect that COVID-19-related fiscal stimulus programs will be directed toward green infrastructure, and view this announcement as directionally consistent with this view.