Research from Atrium Research, Atrium Research Corporation

Atrium Research

Research from Atrium Research

Atrium Research Corporation

Atrium Research provides institutional quality issuer paid research on public equities in North America. Our investment philosophy takes a 3-5 year view on equities currently being overlooked by the market. Our research process emphasizes understanding the key performance metrics for each specific company, trustworthy management teams, unit economics, and an in-depth valuation analysis. 

Our research product includes in-depth initiation reports, research notes, thematic research pieces, and company fact sheets.

Equity Bottom-Up

<ul>
<li>BQE hosted a conference call yesterday, providing various strong updates on the business and operations.</li>
<li>H2 is expected to show strong growth.</li>
<li>The pipeline has 40 active projects, including 17 high-impact ones.</li>
</ul>


BQE hosted a conference call yesterday, providing various strong updates on the business and operations.
H2 is expected to show strong growth.
The pipeline has 40 active projects, including 17 high-impact ones.


BQE: Positive Takeaways from Conference Call

<ul><li>What you need to know: • BQE reported Q2 financial results including prop.</li><li>revenue of $11.3M (-13% YoY) compared to our estimate of $13.1M and adjusted EBITDA of $2.4M (flat YoY, 22% margin) vs. our expected $3.3M.</li><li>• The key standout of the quarter was operations services revenue which was up 167% YoY, representing 27% of revenue.</li></ul>

What you need to know: • BQE reported Q2 financial results including prop.revenue of $11.3M (-13% YoY) compared to our estimate of $13.1M and adjusted EBITDA of $2.4M (flat YoY, 22% margin) vs. our expected $3.3M.• The key standout of the quarter was operations services revenue which was up 167% YoY, representing 27% of revenue.

BQE: Solid Quarter Given Tough Comparable Period; Positive Outlook

<ul>
<li>BQE announced that it has begun preparation to restart the Selen-IX water treatment plant at Centerra’s Kemess Project in BC.</li>
<li>The plant was built and operated by BQE in 2020, but was subsequently placed under care and maintenance due to shifted development plans.</li>
<li>Yesterday’s announcement means BQE can effectively start generating operations services revenue without having to build a new plant.</li>
</ul>


BQE announced that it has begun preparation to restart the Selen-IX water treatment plant at Centerra’s Kemess Project in BC.
The plant was built and operated by BQE in 2020, but was subsequently placed under care and maintenance due to shifted development plans.
Yesterday’s announcement means BQE can effectively start generating operations services revenue without having to build a new plant.


BQE: More Operations Revenue; Restarting Selen-IX Plant in Northern BC

Thematic (Sector/Industry)

<ul>
<li>Since our last note in November, there have been 9 more acquisitions in Canadian small-caps, all at significant premiums.</li>
<li>In this report, we analyze how the 9 newly acquired firms fit into our 6-part framework for identifying takeout candidates.</li>
<li>Our potential takeouts watchlist was up 22% vs. the TSX up 14% and XCS up 15% since November.</li>
</ul>


Since our last note in November, there have been 9 more acquisitions in Canadian small-caps, all at significant premiums.
In this report, we analyze how the 9 newly acquired firms fit into our 6-part framework for identifying takeout candidates.
Our potential takeouts watchlist was up 22% vs. the TSX up 14% and XCS up 15% since November.


Finding the Next Takeout in Canadian Small-Caps - Part Two

<ul>
<li>BQE’s recurring revenue is growing as a percentage of total revenue, making its business more predictable and stable.</li>
<li>The Company has major tailwinds from increasing environmental regulations on water discharge as well as increasing mining capex.</li>
<li>BQE’s EBITDA margins have been steadily improving over the past five years due to its asset-light model, reaching 22% in 2023E. </li>
</ul>


BQE’s recurring revenue is growing as a percentage of total revenue, making its business more predictable and stable.
The Company has major tailwinds from increasing environmental regulations on water discharge as well as increasing mining capex.
BQE’s EBITDA margins have been steadily improving over the past five years due to its asset-light model, reaching 22% in 2023E. 


BQE: Profitable & Growing Micro-Cap in the Water Treatment Industry

Canada

BQE Water Inc. operates as a water treatment company. The Company specializes in providing wastewater treatment solutions to mining industry. BQE Water offers its services worldwide.

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BQE Water (BQE CN)

BQE: Positive Takeaways from Conference Call

BQE hosted a conference call yesterday, providing various strong updates on the business and operations.H2 is expected to show strong growth.

Atrium Research

BQE: Solid Quarter Given Tough Comparable Period; Positive Outlook

What you need to know: • BQE reported Q2 financial results including prop. revenue of $11.3M (-13% YoY) compared to our estimate of $13.1M and...

Atrium Research

BQE: More Operations Revenue; Restarting Selen-IX Plant in Northern BC

What you need to know: • BQE announced that it has begun preparation to restart the Selen-IX water treatment plant at Centerra’s Kemess Project in...

Atrium Research

Finding the Next Takeout in Canadian Small-Caps - Part Two

Since our last note in November, there have been 9 more acquisitions in Canadian small-caps, all at significant premiums.

Atrium Research

BQE: Profitable & Growing Micro-Cap in the Water Treatment Industry

BQE’s recurring revenue is growing as a percentage of total revenue, making its business more predictable and stable. The Company has major...

Atrium Research

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