Fluence Corporation Ltd (AX:FLC) has secured a deal for its Aspiral product in China that should generate at least US$45m in revenue over the next three years. This deal is significant as, aside from the financial benefit, it demonstrates the size of the opportunity for Aspiral in China. Greater investor confidence in Fluence’s prospects here could drive a sharp re-rating of the shares, in our view. We make no changes to numbers now but will review estimates after the Q3 trading statement.
First high volume Aspiral contract
Fluence has announced a deal with ITEST, a provider of engineering services to the highway network in central China, to supply its Aspiral containerised wastewater treatment to highway service stations. The agreement is expected to provide a minimum treatment capacity of 66,000m3/d three years from now, with 80 stations (c 30,000m3/d) being equipped in the first 18 months. Combined with sales of accompanying equipment, the company expects this deal to generate revenues of at least US$45m over three years; we estimate over US$20m of which will be delivered by FY19. This deal is the first high volume sale of Aspiral.
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