New York, NY / ACCESSWIRE / November 3, 2014 / SeeThruEquity, a leading independent equity research and corporate access firm focused on small-cap and micro-cap public companies, today announced it has issued a company update note on Ascent Solar Technologies, Inc. (NASDAQ: ASTI), a developer of thin-film photovoltaic modules with substrate materials that are more flexible, versatile and rugged than traditional solar panels.
"We do not believe the marketplace has recognized the potential value creation possible from Ascent’s joint venture with Suqian, which attributes a significant valuation for Ascent’s technology both in the form of capital contributions to the venture as well as land and use of a factory on very attractive terms form the Chinese government. For its part, Ascent will provide proprietary technology, equipment and know-how to operate the plant, as well as a nominal amount of cash," commented Ajay Tandon, CEO of SeeThruEquity. "We note that that in June 2014, Ascent announced that Suqian had ascribed a value of RMB 400 million, or approximately $77mn, to the proprietary technology contributed by Ascent to the joint venture. At the recent price of $1.76 per share, this valuation is approximately three times Ascent’s market capitalization. This represents 48% of Ascent’s required commitments, and we expect the company to achieve a significant portion of the remainder using manufacturing equipment and machinery. Ultimately we expect Ascent’s ownership of the JV to grow progressively to 80% after all of these items are completed. We are reiterating our target price of $3.00 per share."
Additional highlights from the note are as follows:
Ascent granted business license for China JV
Last week Ascent announced that it had officially been granted key licenses to move forward with a strategically important joint venture with the Suqian Municipality of Jiangsu Province ("Suqian"). This venture is a core component of the company’s long term growth strategy, offering local access to a large market and low cost manufacturing capabilities without substantive capital commitments by Ascent. Ascent was granted the Business License as well as the Certificate of Approval for Establishment of Enterprises with Foreign Investment.
We view this as a critical development for Ascent, as the licenses were gating factors for starting operations at the joint venture. We are impressed by management’s execution, and encouraged that the Chinese central government is continuing to be supportive of solar. We note that he process for receiving approvals from the appropriate government agencies can be rigorous and time-consuming and included lengthy feasibility studies and environmental impact assessments.
Joint Venture potentially transformational for Ascent
Announced on December 28, 2013, the Suqian joint venture is a potentially transformative event for Ascent - one that we view is largely underappreciated by market participants. The joint venture was formed for the purpose of building a manufacturing facility for Ascent’s products in China. This represents a key strategic presence for Ascent and may potentially enable the company to achieve an early mover advantage with its EnerPlex product line in China, a large and fast-growing market.
Under the agreement, Suqian will provide a cash injection of $32.5 million dollars, five years of free usage of the newly built manufacturing facility, and a 5-year tax holiday and significant trade incentives. For its part, Ascent contributes its experience, manufacturing tools and intellectual property. In our view, the terms of the agreement highlight the value of Ascent’s proprietary technology, while enabling powerful cost savings and large new growth opportunities.
The note is available here: ASTI Company Update. SeeThruEquity is an approved equity research contributor on Thomson First Call, Capital IQ, FactSet, and Zack’s. The report will also be available on these platforms.
Please review important disclosures on our website at www.seethruequity.com.
About Ascent Solar Technologies, Inc.
Ascent Solar Technologies, Inc. is a developer of thin-film photovoltaic modules with substrate materials that are more flexible, versatile and rugged than traditional solar panels. Ascent Solar modules can be directly integrated into consumer products and off-grid applications, as well as aerospace and building integrated applications.
Ascent Solar is headquartered in Thornton, Colorado. For more information, go to www.goenerplex.com or www.ascentsolar.com.
About SeeThruEquity
SeeThruEquity is an equity research and corporate access firm focused on companies with less than $1 billion in market capitalization. The research is not paid for and is unbiased. We do not conduct any investment banking or commission based business. We are approved to contribute our research to Thomson One Analytics (First Call), Capital IQ, FactSet, Zacks, and distribute our research to our database of opt-in investors. We also contribute our estimates to Thomson Estimates, the leading estimates platform on Wall Street.
For more information visit www.seethruequity.com.
Contact:
Ajay Tandon
SeeThruEquity
(646) 495-0939
SOURCE: SeeThruEquity