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Analyst Comment

Bawat: Announcement of order with a total value of SEK 6-8m

By Michael FriisHead of Equities
Bawat Water Technologies

Bawat Water Technologies today announced one of the largest orders this year. The order has a value of SEK 6-8m and constitutes from 12%-23% of this year’s order guidance (SEK 35-50m).

In the 2022 half-year report, Bawat backed the FY 2022 order guidance with expectations of one or two orders in the mobile BWMS business line ranging from SEK 6-10m.

Bawat expects to receive the first orders from both the offshore industry as well from port customers for mobile BWMS systems in H2 2022. The expectations are backed by already received engineering orders for said products. The expected orders are ranging between SEK 6-10m in size depending on the scope of the specific orders.

The order relates to the business line mobile Ballast Water Management Systems (mobile BWMS) and will placed on a large sea going barge in the US market. This means that this is not going to serve other customers than that single ship.

The customer is not mentioned in the announcement, however, it is not for the partner GWRC (Great Water Research Collaborative). Therefore, today's order is a seal of approval in another use case. 

The company stated in the half-year report that the gross margins in the mobile BWMS business line are expected, in general, to be higher and help lift the company to profitability in the long run.

The competition in this market is also expected to be lower than in the BWMS for ship solutions.

Disclaimer: HC Andersen Capital receives payment from Bawat for a digital IR/corporate visibility agreement.

Bawat Water Technologies operates in the marine and industrial sectors. The company provides thermally based BWMS systems used for ballast water treatment. The system is suitable for shipboard solutions and for container facilities. The company operates on a global level with the largest presence in the Nordics and Europe. Bawat Water Technologies was founded in 2011 and is headquartered in Stockholm.

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