Company Report
Last edited 5 years ago
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Performance (69m)
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#Risk/Reward
stale
Last edited 5 years ago

-Rapidly growing market oppurtunity for RFT supplying rectifiers for EV charging units

-Given the increase in charging units needed to support EV adoption and the rapid adoption of EV, large (if not massive) market oppurtunity for RFT

-Current price seems to have all annouced contract revenue priced in and them some, but plenty of upside if Tritium gets some healthy orders for their EV chargers

 

#Risks/Sell indicators
stale
Last edited 5 years ago

-RFTs revenue stream currently almost solely reliant on Tritium (single fail point)

-If Tritium were to loose contracts or fail to gain new ones, this would significantly reduce RFTs revenue growth

-Tritium has an exclusive supply contract until end 2019CY for RFTs recitifiers. If this wasn't renewed then RTFs revenue growth may reduce

-Performance failure: Inability of RFT to deliver orders on time or a technical issue with its products would damage relationship with Tritium

#Ionity-Tritium
stale
Last edited 5 years ago

-Ionity: consortium of car makers in Europe

-Plans to build 290 charging stations in the USA

-Plans to build 400 charging stations in Europe

-Currently has ~50 and ~40 under construction

-Contracted Tritium: manufacturer of charging units for 100 units by end of 2019, with average 6 charging units/station

 

 

#Tailwind
stale
Last edited 5 years ago

-3m EVs worlwide in 2017

-Estimated 125-250 EVs worldwide by 2030

-Charge Point (one of the largest networks of charging stations) targets to increase number of charging units from 53k to 2.5m by 2025 (~50-fold increase)

-Electrify America: plans to invest $800 million in charging infrastructure and other EV related initiatives over 10 years in California and $1.2 billion in other U.S. states

-California Gov: plans to invest 80m in EV infrastructure

-Ionity: plans to build 400 charging stations in Europe by 2020

#Opportunity/Value Proposition
stale
Last edited 5 years ago

-RFT is in a good position to capitalise on the Electronic Vehcile (EV) market

-EVs use DC batteries

-Power in the grid is AC

-RFT's products convert AC to DC, allowing for battery charging

-One of the biggest hurdles in EV adoption is the current lack of charging stations (like petrol stations)

-Currently there is a lot of investment into developing and constructing EV charging stations, creating an oppurtunity for RFT to sell its products

 

#Overview
stale
Last edited 5 years ago

-RFT manufactures rectifiers

-Rectifiers convert AC electricity (the type in power lines) into DC electricity

 

#Beware the Hype
stale
Added 5 years ago

I think RFT has sky rocketed recently on the back of announcements by the federal Labour political party regarding their future promises of investing in EV charger infrastructure. I would cautious about investing based on this, given that political parties tend to offer a lot of promises in election campaigns. Until we see the actual policies and colour of their money, this is just hype and speculation. 

#ABB product failure
stale
Added 5 years ago

Ionity had to shut down stations installed with ABB's chargers due to issues with the liquid-cooled cables. Tritium's cables are sourced from another supplier. Could be good news for tritium if their competitor has stumbled:

https://insideevs.com/ionity-shuts-down-20-charging-stations/

https://www.tritium.com.au/news/newsitem?url=tritium-assures-safety-of-its-chargers

#Tritium Future Orders
stale
Last edited 5 years ago

-RFT has entered into exclusive supply contract with Tritium

-Suggests that Tritium will be ordering more products for RFT over 2019

-Tritium estimates they have about 15% of global market share

-Even if they arent the leader or even their market share shrinks, they will have a slice of a rapidly growing market, meaning that slice will be worth more revenue each year