HSBC analysis features H2O Innovation as leader in international growth
You heard it first from InvestorIntel! At the same time as our own analysis led us to the conclusion that: “This brilliantly organized company is emerging as a force to reckon with among the gorillas of water treatment,” The Conference Board of Canada, with research funding from HSBC were secretly dissecting the business model of H2O Innovation to understand how companies can gain international advantages.
Those investors who bought H2O Innovation Inc. (TSXV: HEO | OTCQX: HEOFF), based on our past coverage of this excellent company are being rewarded today as the company is being featured as an example of international success in a prestigious in-depth financial analysis published by Conference Board of Canada today titled: Selling to the world: The keys to International Business Success.
To understand the key to international success, The Conference Board researched 20 leading firms in international expansion, including IMAX Corporation, Ag Growth International, Westport Innovations Inc, Altus Group, and H2O Innovations. These companies’ revenues range in the $20 to $400M and all share tremendous success at taking Canadian innovation to the international scene.
As a rule Canadian innovation lags as compared to peer-country but not so as far as H2O innovation is concerned, which is why it warrants further analysis by The Conference Board.
Founded in 1916, The Conference Board is an objective, independent source of economic and business knowledge with one agenda: to help its member companies understand and deal with the most critical issues of our time.
They conduct research and convene business leaders in forums large and small, public and private. The insights captured through their extensive network feed directly back into its research and meeting agendas, ensuring that its activities remain sharply focused on the key issues of the day. In 2013, the Conference Board generated $57M from providing revenues to its members.
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The fact that H2O Innovation has been targeted by The Conference Board confirms to investors that H2O Innovation has found the secret sauce for international expansion. Frederik Dugré, CEO:
“Our international strategy relies on the identification and nurturing of committed, local partners to whom we entrust the case of our innovative products and brand. More specifically, sharing such technical knowledge to local partners enables them to create sophisticated solutions for sophisticated customers locally, and that’s where the market really sees the value added in our products.”
The Conference Board identified four core resources that allow firms to develop their Global Competitive Advantage: skilled executives, foreign market knowledge, innovation capabilities and international networks.
According to Mr Marc Blanchet, VP Corporate Affairs: “Among the large players of the industry we are one of the small companies but among the small players we are one of the larger companies.”
With 168 employees in offices and/or facilities in Quebec City, Toronto, Minnesota, Calgary and San Diego this company’s potential for growth is worth watching because of its position in the water purification space.
Water filtration using membrane technology is a growth sector. The global demand for membrane filtration modules was estimated at approximately $15.6B USD in 2012. Driven by new developments and innovations in material science and process technologies, global increasing demands, new applications, and others, the market is expected to grow around 8% annually in the next years. It is forecast to increase to $21.22B USD in 2016 and reach $25B 2018.
H2O Innovation designs and provides state of the art, custom built and integrated water treatment solutions based on membrane filtration technology for municipal, energy and natural resources end users. In 2014 it delivered 24 projects in North America, the largest one in support of Fort Hills Suncor operations in Alberta. The average sale price for these projects was $1.2M.
Dr. Luc C. Duchesne is a Speaker and Author with a PhD in Biochemistry. With three decades of scientific and business experience, he has published ... <Read more about Dr. Luc Duchesne>