27/11/2012

FAIRE CONNAISSANCE AVEC LA 4EME GENERATION WIRELESS usa

CIG Wireless is set to become the only mid-tier publicly traded wireless

communication tower company. With an experienced senior

management team and financial backing through a $150m credit facility,

CIG Wireless provides an attractive investment opportunity and

participation in the secular growth of mobile data. Our analysis

highlights significant growth potential through portfolio acquisitions and

the establishment of a tower development operation. Based on a

detailed DCF model, we estimate the fair value of the stock at $5.60 and

initiate our coverage with a Buy rating.


20 September 2012 CIG Wireless

 

FIRST B

ERLIN

Equity Research

Analyst:

 

 

Simon Scholes, Tel. +49 (0)30 - 80 93 969 94

20

 

CIG Wireless

CI

G

US / Telecommunications Services

Primary Exchange: OTC BB

RATING BUY

PRICE TARGET $5.60

Bloomberg: CIGW US Return Potential 31.1%

ISIN: US12551W1071

INITIATING

COVERAGE

Risk Rating High

EMERGING PLAYER IN A BUOYANT INDUSTRY

Simon Scholes, Tel. +49 (0)30 - 80 93 969 94

FINANCIAL HISTORY & PROJECTIONS

2012E 2013E 2014E 2015E

Revenue (

 

$

m) 1.75 15.42 39.05 55.08

Y-o-y growth 196.9% 781.1% 153.2% 41.0%

EBIT (

 

$

m) -6.97 -3.13 -0.24 4.66

EBIT margin -398.3% -20.3% -0.6% 8.5%

Net income (

 

$

m) -3.72 -5.82 -9.44 -9.66

EPS (diluted) (

 

$

) -0.18 -0.14 -0.17 -0.16

DPS ($) 0.00 0.00 0.00 0.00

FCF (

 

$

m) -5.01 -185.23 -221.75 -68.97

Net gearing 17.9% 82.2% 117.2% 124.5%

Liquid assets (

 

$

m) 15.60 42.16 2.31 5.83

COMPANY PROFILE

CIG Wireless owns and operates wireless

communication infrastructure in the US.

Primary activity is the leasing of antenna space

on its tower portfolio to wireless service

providers. CIG is also active in the

development of Build-to-Suit contracts. The

company is based in Atlanta, Georgia.

MARKET DATA

 

 

As of 9/19/2012

Closing Price $ 4.27

Shares outstanding 20.74m

Market Capitalisation $ 88.56m

52-week Range $ 2.01 / 4.43

Avg. Volume (12 Months) 1,842

Multiples 2012E 2013E 2014E

P/E n.a. n.a. n.a.

EV/Sales 52.7 6.0 2.4

EV/EBIT n.a. n.a. n.a.

Div. Yield 0.0% 0.0% 0.0%

STOCK OVERVIEW

1.8

2.3

2.8

3.3

3.8

4.3

4.8

Nov 11 Jan 12 Mar 12 May 12 Jul 12

630

680

730

780

830

880

CIG Wireless Russell 2000

COMPANY DATA

 

 

As of 30 Jun 2012

Liquid Assets $ 1.05m

Current Assets $ 1.87m

Intangible Assets $ 18.89m

Total assets $ 20.07m

Current Liabilities $ 3.93m

Shareholders’ Equity $ 13.56m

SHAREHOLDERS

Wireless Investment Fund AG 48.2%

ENEX 8.8%

BAC-CIG 4.9%

BAC Berlin Atlantic Holding 3.6%

Free Float and Other 34.5%

CIG Wireless is set to become the only mid-tier publicly traded wireless

communication tower company. With an experienced senior

management team and financial backing through a $150m credit facility,

CIG Wireless provides an attractive investment opportunity and

participation in the secular growth of mobile data. Our analysis

highlights significant growth potential through portfolio acquisitions and

the establishment of a tower development operation. Based on a

detailed DCF model, we estimate the fair value of the stock at $5.60 and

initiate our coverage with a Buy rating.

Attractive business model

 

 

CIG Wireless (CIG) owns and operates wireless

communications towers. Through additional development projects, CIG is also

expected to be able to generate attractive returns on invested capital. By

consolidating smaller underperforming players, we expect the company to be

able to expand its asset base at attractive prices. Tower leases are generally

concluded on a long-term basis and offer the potential for high revenue and

cash-flow visibility.

.

Fundamental growth drivers

 

 

The dynamics of the tower industry are driven by

strong secular growth in mobile data and internet traffic. Current networks are

unlikely to be able to handle anticipated data demand, forcing mobile operators

to make further network investments.

Planned equity capital raise

 

 

We would expect CIG to raise equity capital

during the foreseeable future. Given an established credit facility of $150m and

management’s large network of investors, we are confident a large capital raise

will be successful.

Growth at attractive prices

 

 

We expect the company to experience strong

revenue growth in coming years. Based on a detailed DCF model we arrive at a

price target of $5.60. We initiate our coverage with a Buy recommendation.

20 September 2012

B

CIG Wireless

Page 2/31

CONTENTS PAGE

CIG Wireless – Executive Summary .............................................................................................................1

Investment Case..........................................................................................................................................3

SWOT Analysis............................................................................................................................................4

Valuation......................................................................................................................................................6

Company Profile ..........................................................................................................................................9

Historic development..............................................................................................................................9

The Business Model.............................................................................................................................10

The Current Tower Portfolio ..................................................................................................................11

Tower structures...................................................................................................................................12

Market Environment...................................................................................................................................14

16:29 Publié dans etranger | Lien permanent | Commentaires (0)

Les commentaires sont fermés.