Morgans: Redflow consumer offering to open the door
Equity research│June 7, 2016
We reinstate coverage of RFX following its recent capital raising. We expect RFX to end FY16 with ~A$12.5m of net cash and sales ramping up.
- After many years of trials, RFX recently received its first small commercial orders from a variety of system integrators. We expect sales to accelerate as commercial orders generate revenue and cash.
- RFX now fully outsources contract manufacturing to global giant Flextronics, has a Battery Management System for ease of installation and use, and is generating small commercial sales, which places RFX one step closer to success, in our view.
- That said, after a stellar share price performance, RFX is now trading in-line with our price target so we move to a Hold recommendation.
Please click here to read the full analyst research update.
Redflow Limited Appendix 4D and interim Financial Report for the half year ended 31 December 2015
Redflow Limited First Half 2016 Financial Report for half-year ended 31 December 2015
Redflow Limited Annual Financial Report 2015
Redflow Limited Annual Financial Report for the year ended 30 June 2015
Morgans: Kick Starting Sales
RFX’s ZBM is commercial in key applications. While trials are going well, conversion to revenue is slower than expected, which prompted the recent A$16.1m capital raising. In the last 12 months RFX has reduced its selling price by 36% to US$44cents per kilowatt hour and we believe it’s well placed to slide down the cost curve at a faster pace than competitors (including the well promoted Tesla Powerwall). If the ZBM follows the ~20% pa cost reduction that solar experienced, then we believe it has the potential, within a couple of years, to be one of the most economically compelling energy storage products in the market.
Please click here to read the full analyst research update.
Morgans: Recharging the Bank Balance
Over the last 18 months the revised RFX Board have: 1) improved their battery (it’s now commercial ready); 2) signed up three major System Integrator partners (system developers and distribution channels); 3) completed stage 1 of scalable manufacturing with stage 2 to be completed by December ; and 4) replenished the bank balance (the Board expects RFX to be cash flow positive at the end of CY15). We expect SI’s to test the outsourced product over 3-18 months and gradually begin increasing volumes …
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Annual Financial Report 2014
Morgans: Putting Runs on the Board
![ROB-Thumbnail](https://redflow.com/wp-content/uploads/2014/11/ROB-Thumbnail1.jpg")
RFX’s cash position looks sound for the next 12 months following management’s hard work in lowering operating costs. The next commercialisation step is to secure demonstration sites with multinational System Integrators and/or a strategic partner with expertise and capital. We believe this will happen but timing is difficult to predict.
Please click here to read the full analyst research update.
