The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
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Good to see MWE announcing new partnerships - today's with Viridix's "revolutionary" data analytics to improve irrigation.
And that it'll be operational soon, and will generate further recurring income:
Https://uk.advfn.com/stock-market/london/mti-wireless-edge-MWE/share-news/MTI-Wireless-Edge-Limited-Taking-Precision-Irrigat/87079194
"Viridix's RooTense(R) technology has been operating for several years and is already used by some of Mottech's customers and this has been key to the decision to integrate the two systems. The integration into Mottech's ICC PRO management software should be completed in early Q2 of 2022 and commercial sales will commence thereafter. Mottech will be the exclusive distributor in South Africa and Australia, where it currently has hundreds of existing agricultural customers, and will promote the integrated solution in other territories as well. The cost to the farmer versus the savings made on water usage are very attractive and Mottech expects demand to be high, generating income from set-up costs and recurring income from annual licenses."
"MTI's CEO, Moni Borovitz, commented : "We know the Viridix team and their technology well. Some farmers use their technology on a standalone basis and then apply the findings to irrigate their fields. By integrating the two products, our customers can easily control water usage in real time on the same system, and we believe that this can be transformational for individual farms, creating significant financial savings and, as importantly, substantial reductions in water usage each year."
flipped back c66p
tp 80p
Spirent's trading update today reads well as regards the global 5G rollout:
Https://www.investegate.co.uk/spirent-comm-plc--spt-/rns/trading-update-2021/202201200700080082Z/
Techinvest's new issue is out, so it should be OK to copy the conclusion from their Buy recommendation for MWE from their last issue, which followed the Q3 update and the 5G contract wins:
"MTI's business has been a reliable performer over a number of years and the growth trajectory looks set to continue given the excellent deal flow across all three divisions. News that sales of 5G and RFID antenna solutions have overtaken fixed broadband wireless application antenna sales for the first time is particularly welcome.
By far the majority of investment in 5G is still to come and so the opportunity remains significant for MTI with the antenna division being a key supplier to the major mobile network radio manufacturers. Continue to buy."
The Notice of AGM out today (for 9th March) includes the proposed appointment of an impressive new NED who should bring in some decent expertise and contacts:
Https://uk.advfn.com/stock-market/london/mti-wireless-edge-MWE/share-news/MTI-Wireless-Edge-Limited-Notice-of-shareholder-me/87024916
"Luke Ahern has worked in the financial services sector for over 25 years, principally in equity sales and investment research. Luke is currently the Head of Developed Markets Sales at Investec Bank Plc. Prior to this he worked at Macquarie Capital (Europe), Blue Oar Securities and Seymour Pierce. He has a degree from Royal Holloway, University of London."
the reality of range bound trading
tp just less than 70p (still reasonably heftily valued imv)
https://twitter.com/surprised_trade/status/1478293676531068928
broker note out with 95p+ target
Happy New Year everyone.
And encouraging news to start 2022 - MWE have acquired 51% of PSK, a company they already know well, with a view to buying the rest in the future.
They expect it to be earnings-enhancing, "to step up the value-chain" and to increase recurring revenues.
Above all this shows MWE's reliable and trustworthy managament, in that not only have they worked with PSK for years, but they've waited for a year for PSK to emerge from its COVID-related trough with a surge in orders and business, presumably paying a bargain price from cash resources in the process given that they're also providing a loan to further fund the businss:
Https://uk.advfn.com/stock-market/london/mti-wireless-edge-MWE/share-news/MTI-Wireless-Edge-Limited-Acquisition-of-51-of-P/86930903
This compny never ceaes to impress.. I added recently and will hold for the dividend..
More excellent news this morning - a sizeable $3.1m contract win for the new Russian office, giving "great visibility on revenue for the next two years":
Https://uk.advfn.com/stock-market/london/mti-wireless-edge-MWE/share-news/MTI-Wireless-Edge-Limited-Contract-Win/86860238
https://twitter.com/surprised_trade/status/1473188914680709120
rns - further contract wins - 'has secured its largest order to date, totaling US$3.1 million.'
https://*********************/newsfeed/article/mti-wireless-edge-contract-win-1329122
excellent news and MWE keeps on keeping on, contract after contract ....a lot to like :-)
These are significant contract wins, securing a decent chunk of next year's revenues:
Https://uk.advfn.com/stock-market/london/mti-wireless-edge-MWE/share-news/MTI-Wireless-Edge-Limited-Contract-Wins/86810238
"Contract Wins
MTI Wireless Edge Ltd (AIM: MWE), the technology group focused on comprehensive communication and radio frequency solutions across multiple sectors, is pleased to announce that its Distribution & Professional Consulting Services division has received three further orders for services relating to the tethered balloon projects that it is involved in. These orders are worth approximately US$1.0 million in aggregate and are to be delivered within the next 12 months.
MTI's CEO, Moni Borovitz, commented : "We believe that these additional orders reflect the satisfaction of our customers with the services they have received so far from us and our unique capability and experience in this highly specialist area."
ST works magic
lol
Thank you for sharing this rivaldo
"– MTI Summit: Strong performance maintained with ongoing defence spending. Positive outlook following September’s agreement with a long term defence client that made MTI Summit its primary supplier. This should increase business from the current c. $4m p.a. – Mottech: Steady growth across its main markets of agricultural and landscape irrigation and water distribution and a positive response to the new direct office in Canada. Water remains a key global concern with a fifth of the global population living with water scarcity. Mottech’s solution typically saves 35% of water consumption."
Allenby Capital issued a new note on 15th November which hasn't been mentioned here yet - they have a fair value of 95p.
For some reason the note isn't on Allenby's site, but is on Research Tree. Since it's been a week since publication (and it's normally free to read anyway) I'll post the summary here FYI:
"MTI Wireless Edge Limited (MWE.L)
All divisions demonstrate growth; positive outlook
Q3 results from MTI Wireless Edge Ltd, the technology group focused on comprehensive communication and radio frequency solutions across multiple sectors, demonstrate strong demand across all three divisions as end markets return to some sort of normality.
Each division (Antennas, Water Solutions (Mottech) and Distribution & Consultation (MTI Summit)) remained profitable and revenue grew – the first time for several years at Antennas as demand increased for 5G backhaul and RFID. A small dip in gross margin reflecting revenue mix, increased shipping costs and FX but this was offset by lower operating costs and EBIT increased 11% to $3.3m. Cash conversion continues to be good with net cash of $9.3m that will be used for organic growth, M&A and fund the progressive dividend (FY21 yield: 2.8%).
The outlook remains positive with structural drivers for each division (5G, water scarcity and increased defence spend). Revenue and profit forecasts, and fair value of 95p/share remain unchanged.
– 9M performance: Group revenue +8.1% to $32.1m. MTI Summit maintained its strong momentum with revenue +16.4% to $10.4m, Mottech +7.2% to $13.2m and Antennas returned to growth with 9M revenue +0.7% to $8.6m and Q3 YoY +7.7% to $8.6m. This is the first growth for several years and was driven by demand for 5G backhaul and RFID antennas. Gross margin dipped 120bps to 31.0% reflecting revenue mix, increased shipping costs and FX and we expect this will persist in Q4 before bouncing back in FY22. This was offset by good cost control and EBIT margin was 10.4% (9M FY20: 10.1%). Good cash conversion with cash flow from operations +15% to $3.2m, 95.9% of EBIT.
– Antennas: Combined 5G backhaul and RFID revenue was larger than the legacy fixed broadband wireless access business for the first time and these represent the key growth areas for the division as operators roll out 5G networks. As previously discussed, 5G deployment is still at an early stage and this represents a significant medium term revenue opportunity as the division supplies multiple mobile network radio manufacturers. MTI also continues to innovate, recently announcing a 4.9-6.5GHz, 3’ parabolic antenna that lets customers buy a single wide range antenna rather than multiple antennas."
I particularly liked from ST's article the following extracts confirming new info on patents, antenna customer wins etc:
"MTI has recently won blanket orders worth US$0.85m from two key customers for 5G backhaul antennas, and Borowitz notes the majority of the telecoms industry’s investment in 5G is yet to come. As a key supplier to the major mobile network radio suppliers, he views the sales opportunity as significant.
Borowitz also revealed during our results call that MTI has registered a patent for a new smart 5G antenna that is creating interest among the large telecom groups.
In addition, MTI has signed up five new customers for its military antenna business which “opens the doors for systems houses, a good sign for future orders”.
MTI’s Summit electronics division, which represents 40 international suppliers of radio frequency/microwave components, has grown revenue by 16 per cent to $10.5m this year, buoyed by high levels of government spending on defence. The unit
accounts for 40 per cent of group operating profit. Importantly, MTI has signed a three-year strategic agreement with a large, long-term customer operating in the defence sector. The arrangement will speed up interactions between the two companies, make transactions more efficient, and help grow sales. The customer currently places orders for $4m of components, so is significant."
"Allenby Capital pencils in a 2021 net cash pile of $10.4m rising to $12.2m (10.3p a share) in 12 months time – the shares are rated on 18 times cash-adjusted forward earnings, a modest rating for a technology company. A prospective dividend yield of 2.7 per cent and potential for MTI to make earnings-accretive acquisitions are supportive of my 100p target, too. Buy"
cheers st
sold 9k
handy £1k +
Cheers surprised - good to see Simon Thompson remains keen on MWE (with a 100p valuation) - here's a direct link (91Divoc, prices don't ever get "jacked up" by the MMs after midweek ST tips - sometimes the resultant buying has almost no effect, and sometimes it does as with MWE this morning):
Https://www.investorschronicle.co.uk/ideas/2021/11/15/climate-change-and-5g-winner/
"Climate change and 5G winner
An Israeli-based technology group is creating a strong recurring revenue stream from wireless water management systems, and is seeing increased demand for 5G backhaul antennas, too.
November 15, 2021
By Simon Thompson
COP26 has again highlighted the damage carbon emissions are having on the planet and the urgent need for all countries to adopt friendlier environmental solutions.
For example, global warming is accentuating the need to source more accurate and cost-effective irrigation systems which reduce water and power usage, a factor that is underpinning strong demand for wireless water management systems. Israeli-based technology group MTI Wireless Edge (MWE:76p) offers one way of playing this theme as the group’s systems are proving incredibly popular in French vineyards (140,000 controllers installed in less than two years), and in major cities, particularly across Australia, China and Canada.
etc"
Will be jacked up at the open 3-5p
'....demand for wireless water management systems. Israeli-based technology group MTI Wireless Edge (MWE:76p) offers one way of playing this theme as the group’s systems are proving incredibly popular in French vineyards (140,000 controllers installed in less than two years), and in major cities, particularly across Australia, China and Canada.
....Another key take for me is the ongoing growth in MTI’s antenna business which is feeding off commercial sector demand for higher-margin radio-frequency identification (RFID) and 5G network backhaul antenna systems.
The division’s operating profit surged 35-fold to $179,000 on 7.7 per cent higher revenue of $2.8m in the third quarter, which means operating profit of $425,000 in the first nine months of 2021 is up seven-fold year on year on slightly higher revenue of $8.6m. This highlights the much higher-margin contribution from both RFID and 5G activities...
A prospective dividend yield of 2.7 per cent and potential for MTI to make earnings-accretive acquisitions are supportive of my 100p target, too. Buy.'
Good Investor Meet interview with the CEO just now. A few highlights hastily scribbled down:
- all three divisions are growing nicely now
- gained 5 new antenna customers, exceptionally good progress/unusual in that space
- developing a new 5G product
- water: keen to emphasise the recurring revenue service model which provides 20% of revenues
- distribution: new project initiated for tethered balloons with good visibility for the next 18 months
- prospects for an acquisition sound more promising than previously
- expect 15% profit growth from every additional dollar of revenue
- 5G growth is really starting to kick in now
- growth will come from all three divisions
- Q4 is again expected to be "a good quarter"
https://twitter.com/surprised_trade/status/1460145487365947393
growth continues across all areas ...a lot to like
with revenues, profits and EPS all accelerating somewhat from the H1 results.
The outlook is confident in achieving a "good result" for the full year, and with Q4 normally being a very good quarter MTI should at least meet expectations.
All three divisions are now trading well - most importantly the 5G potential is really starting to come through, along with recovery in RFIDs.
Net cash of almost £7m continues to rise and represents more than 10% of the m/cap.
MWE are looking very strong going forward for some time to come given the world's need for 5G, RFID, water and defence-related tech.
Q3 results will be out next Monday the 15th FYI - encouraging to see there will be another Investor Meet presentation to accompany it:
Https://uk.advfn.com/stock-market/london/mti-wireless-edge-MWE/share-news/MTI-Wireless-Edge-Limited-Notice-of-Q3-Results-and/86484522