Investor Update, page-82

id say big pump re-rate imminent

Ten reasons to consider Anteo (ASX: ADO)

1) Anteo’s strategy to focus its efforts on only a couple of segments seemsprudent. The company previously targeted a plethora of immunoassayswith its AnteoBind technology; however, it now has a deeperunderstanding of ‘what the market wants’, and it is building upon thisknowledge by focusing its cash inflow only on two areas where thechances of success are the highest – the POC and battery segments.

2) Anteo’s technology has a ‘blue sky’ of applications. Even though thecompany has decided to focus on two key applications of the technology– in the POC and energy sectors – we believe that the technology can be applied to a number of other areas (medical devices being one). Thepotential of the company to garner licensing deals in these presently ‘noncore’ areas is evident.

3) Anteo has a high potential for rapid uptake in the POC testing segment.It has already collaborated with POC manufacturers and demonstratedthat its technology offers improved assay performance within the cardiac,fertility, and infectious diseases space. With promising results from all thecollaborations, we believe Anteo has a significant near-term opportunitywith respect to generating revenues from the POC segment.

4) The need for nanoscale devices in the POC testing segment is verysignificant. Currently, there is high focus on making POC devicescomparable with lab-scale devices without compromising on their ease ofuse. Anteo’s nanotechnology aims to plug this gap and therefore has ahuge market potential.

5) Anteo’s initial results in the battery segment are promising. Thecompany has shown that AnteoCoat has the potential to address theproblem of limited energy density of Li-ion batteries, along with thecapability to reduce the cost of manufacturing. These benefits offered byAnteo are extremely encouraging for the battery sector.

6) Anteo has already been able to strike deals with two battery makers inone month. The deals demonstrate that battery componentsuppliers arealready showing extremely positive interest in the technology’s capabilityto improve the capacity of their batteries.

7) Multiple large battery manufacturers are investing in improving theenergy density of batteries. In line with increasing focus onelectrification, many large players are making investments in developingnew technologies that can aid the future of EVs (expected to be a hugeopportunity over the next few years). Some companies are also keen tostrike collaborations with firms, such as Anteo, that have developedinteresting technologies to boost battery capacity.

8) Lithium-ion batteries are a massive market opportunity. As the cost perGWh of a lithium-ion battery drops markedly over the next decade we seethe global market opportunity rising from perhaps US$20bn today tomore like US$130bn in 2030. This provides significant upside if Anteo’stechnology is adopted by any of the leading battery manufacturers.

9) There is significant opportunity for the use of the technology in activeimplants. There is a growing adoption of miniaturized implants as theyare less harmful to the body during implantation. We are certain that assoon as Anteo finds a new collaborator (after conclusion of the CookMedical partnership), it would demonstrate significant benefits for thissector as well.

10) Anteo is current trading underneath out valuation range. We valueAnteo at 2.9 cents per share base case and 4.0 cents per share optimisticcase using a probability-weighted DCF valuation approach. We see Anteobeing re-rated by the market as its Battery project yields highly efficientsilicon composite anodes, and as the POC project moves towardscommercialization.