Cash­ing in on bat­tery power

Finweek English Edition - - HOUSE VIEW - SIMON BROWN

METAIR MOSTLY makes bat­ter­ies, but not your nor­mal bat­tery – ex­cel­lent stop/start tech­nol­ogy bat­ter­ies. The re­cent Ro­ma­nian ac­qui­si­tion (Rom­bat) has been sup­ple­mented with a €16m fa­cil­ity, of which it got state grants of €8m, in or­der to get its stop/start bat­taries more widely dis­trib­uted in Europe.

Lo­cally the com­pany sells the nor­mal bat­tery that goes into new cars via First Na­tional Bat­tery, with most lo­cal ve­hi­cle man­u­fac­tur­ers buy­ing their bat­ter­ies from Metair.

The new stop/start sales into Europe have huge po­ten­tial as they are en­vi­ron­men­tally more friendly, and re­ports sug­gest the EU may well make the stop/start con­cept a re­quire­ment for all new ve­hi­cles sold in the EU, which will en­sure huge sales for Rom­bat.

With a num­ber of other ve­hi­cle and re­tail prod­ucts, a div­i­dend yield of over 2% and a p:e of just over 11 times, the stock is not ex­pen­sive and has great po­ten­tial.

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