For de som ikke kjenner caset har Pryme utviklet en teknologi for og i stor skala omdanne plast til pyrolyseolje. Produksjon fra deres første plant er ventet i q4 22. Dette er en forsinkelse på 3 mnd fra hva de tidligere har guidet.
De har allerede anskaffet tomt til neste fabrikk som skal prosessere 160k tonn plast til pyrolyseolje årlig.
Etter q4 presentasjonen den 24/2 kom Nordea med oppdatert kursmål på 100 kr. I dag handles aksjen til 11,9, som gir selskapet en mcap på i underkant av 180mnok. Som dere kanskje forstår er denne aksjen kraftig underpriset. De har lidd av at alle grønne aksjer har falt den siste tiden, og de har synki i kurs i de tilfeller quantafuel har meldt om feil eller forsinkelser.
Det er meldt om en emisjon snart, det er hensyntatt i Nordeas kursmål.
Det er også verdt å nevne at i løpet av 2025 skal halvparten av plastavfallet i EU resirkuleres. Plastic energy har kjørt fabrikker med lignende teknologi som pryme i over 5 år. Så denne teknologien virker.

Nordeas analyse:
Fredag 25.02: Kursmål 100,-.

KEY INFO
Target price NOK 100
Fair Value NOK 100
Share price, close NOK 13.99

Business description
Pryme is an Oslo-listed, Dutch-Headquartered converter of waste plastic into valuable products. The company has developed a unique process based on proven technology that offers downstream partners scale that is unmatched by peers, to date. Combining this with a growing list of partnerships through the
value chain, including a multi-layered offtake agreement with Shell Chemicals, and a first production facility under construction, we believe the company is at the start of a pan-European roll-out.

Investment case
There is no doubt that plastic products are a vital part of the modern world, but the consequent waste has resulted in significant pollution and emissions problems, with just 9% of all plastic ever produced being recycled. Governing bodies are beginning to take action, with global majors following suit. However, alternative recycling methods are needed to complement incumbent methods in order to hit the ambitious targets set, resulting in a megamarket for alternative
recycling processes, such as chemical recycling, in the future. Pryme has developed a unique process for the conversion of waste plastic into valuable products that boasts significant scale advantages over peers, resulting in less scale-up risk and impressive facility economics. This is important to end users, as
evidenced by its recent partnership with Shell. With other partners also in place, Pryme is ready to start production next year at its first facility in Rotterdam, which will trigger significant scaling up, once successful

Main risks
We consider the primary downside risks for Pryme to be:
1) lack of government support and green financing for the chemical recycling industry, resulting in a slowdown of market growth,
2) dependence on current partnerships (particularly offtake partners) and
3) technology risk at a commercial level

Estimate and valuation changes
We value the company using a risked DCF on a facility rollout with an 8% WACC. Taking into account changes to phase 1 and opex for the near term and building in the imminent equity raise, we arrive at
a risked target price of NOK 100 (113). Despite these growing pains, we still see an attractive long-term story, which is reflected by our target price being several times the price today (even a 1% WACC increase returns a target price 6x that of current share price levels).

Nordea Markets - Analysts
Elliott Jones
Senior Analyst

Jørgen Bruaset
Director