2014

Edison Initiates Coverage on Sealegs Corporation

LONDON, August 6, 2013 /PRNewswire/ --

Edison Investment Research, a leading international investment research firm, announces the initiation of full coverage of Sealegs Corporation (SLG), the innovative amphibious craft manufacturer.

     (Logo: http://photos.prnewswire.com/prnh/20130417/608168 )

Sealegs has developed an innovative boating solution for the transition between land and water that is attracting increasing international interest. The company has come through a period of restructuring and is now targeting faster growth with new products and market opportunities. A DCF of the existing business equates to near the current share price, suggesting the growth opportunities are in effect for free.

The company's history is in manufacturing boats and has sold over 750 amphibious boats to more than 30 countries during the past 10 years, although 80% of sales in recent years have been to New Zealand, Australia, the US and the UK. The business is transitioning from selling solely boats to a growth strategy of selling technology kits to other boat manufacturers via a licensing arrangement, although it will continue to manufacture its own boats. The company is experiencing strong interest in its technology kits from both the recreational and professional boat markets. It is developing a new product for larger boats (up to 12m), which is more suited to military, marine rescue and law enforcement operations.

The stock trades below its peers on an EV/sales basis, but at a premium on an earnings basis. The stock price appears to fully reflect the value of the existing business, assuming a steady state, but does not reflect any of the growth potential of its new products. Our combined DCF model for both the existing and new business values the company at NZ$0.26 or 53% above the current share price.

For the full report see:

http://www.edisoninvestmentresearch.com/research/company/sealegs-corporation

All reports published by Edison are available to download free of charge from its website http://www.edisongroup.com.

About Edison Investment Research

Edison, the investment intelligence firm, is the future of investor interaction with corporates. Our team of over 100 analysts and investment professionals works with leading companies, fund managers and investment banks worldwide to support its capital markets activity. We provide services to more than 400 retained corporate and investor clients from our offices in London, New York, Berlin, Sydney and Wellington. Edison is authorised and regulated by the Financial Services Authority (http://www.fsa.gov.uk/register/firmBasicDetails.do?sid=181584).

Edison is not an adviser or broker-dealer and does not provide investment advice. Edison's reports are not solicitations to buy or sell any securities.

For more information please contact:
Bruce McKay
Edison Investment Research
+64-(0)4-894-8555

Roger Johnston
Edison Investment Research
+44-(0)203-077-5722
industrials@edisongroup.com

SOURCE Edison Investment Research



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