Panasian Power Plc
INTRODUCTION
Panasian power plc is a pioneering supplier of clean and renewable energy which commenced operations in 2002 and has since become a leader in the renewable energy industry. PAP produces clean renewable energy from hydro, solar and other renewables sources in Asia and Africa. The company has a diversified renewable energy portfolio comprising of over 22.4 MW of generation capacity. PAP reserves the exclusive right as the authorized channel partner for sungrow inverters and master supplier agreement with LONGI solar panels in Sri Lanka. Offering a wide range of inverters and solar panels to satisfy the growing energy demand.
Fundamentals
PAP has managed to grow revenues by close to 3x in the last 5 years while maintaining gross profit margins of over 50%. PAP also has an interest cover of 1.55 times and a current ratio of 1.15 times. The cashflows also indicate significant investments made to expand business operations.
Future
Sri Lanka plans to achieve 70% of its energy demand through renewable energy by 2030 and aims for 100% by 2050. This should poise the company for aggressive expansion. In 2024 PAP signed PPA`s with the Ceylon Electricity Board of Sri Lanka to commission 35 MW solar projects through its fully owned subsidiaries which are assumed to be completed soon. These projects enable PAP to more than double its generation capacity from 22.4 MW to 57.4 MW. Positive sustainable growth can be expected from PAP`s placement in Africa since their energy demand are forecast to grow in the future.
Summary
Taking the above facts and figures into consideration PAP should yield high capital and dividend growth to investors over the next few years
How well do narratives help inform your perspective?
Disclaimer
The user UshanDeSilva has a position in COSE:PAP.N0000. Simply Wall St has no position in any of the companies mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The author of this narrative is not affiliated with, nor authorised by Simply Wall St as a sub-authorised representative. This narrative is general in nature and explores scenarios and estimates created by the author. The narrative does not reflect the opinions of Simply Wall St, and the views expressed are the opinion of the author alone, acting on their own behalf. These scenarios are not indicative of the company's future performance and are exploratory in the ideas they cover. The fair value estimates are estimations only, and does not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that the author's analysis may not factor in the latest price-sensitive company announcements or qualitative material.