London South East prides itself on its community spirit, and in order to keep the chat section problem free, we ask all members to follow these simple rules. In these rules, we refer to ourselves as "we", "us", "our". The user of the website is referred to as "you" and "your".
By posting on our share chat boards you are agreeing to the following:
The IP address of all posts is recorded to aid in enforcing these conditions. As a user you agree to any information you have entered being stored in a database. You agree that we have the right to remove, edit, move or close any topic or board at any time should we see fit. You agree that we have the right to remove any post without notice. You agree that we have the right to suspend your account without notice.
Please note some users may not behave properly and may post content that is misleading, untrue or offensive.
It is not possible for us to fully monitor all content all of the time but where we have actually received notice of any content that is potentially misleading, untrue, offensive, unlawful, infringes third party rights or is potentially in breach of these terms and conditions, then we will review such content, decide whether to remove it from this website and act accordingly.
Premium Members are members that have a premium subscription with London South East. You can subscribe here.
London South East does not endorse such members, and posts should not be construed as advice and represent the opinions of the authors, not those of London South East Ltd, or its affiliates.
Good to see today's rise. Last year's year end trading update was 14th February, so not long to wait.
MWE have around 5p per share of cash, so with 4.4p EPS forecast this year by Allenby MWE are on an ex-cash P/E of only 10.1.
Which seems very low imo given MWE's involvement in it three sectors of water management, 5G/telecoms and defence.
There's also a new article by Mottech about using Climate-Smart Agriculture to mitigate energy use in irrigation etc:
Https://mottech.com/news/the-role-of-climate-smart-agriculture-in-the-fight-against-global-warming/#
Techinvest's new issue is out, so it should be OK to copy their conclusion from the prior Dec'22 issue after the Q3 results:
"MTI has announced solid financial results for the nine-month period ended September 30. Revenue growth was 8% to US$34.8m and EBITDA increased by 14% to US$4.58m. One-off acquisition and depreciation costs led to net profit of US$2.74m, up from US$2.7m a year earlier. Earnings per share increased to 2.99 US cents from 2.95 US cents in the comparative period. Net cash at the end of the third quaretr was US$5.2m (equivalent to 4.9p per share).
The third quarter saw strong trading across all MTI's business divisions, extending the momentum that was evident in the company's first half results. MTI Summit, in particular, is benefiting from new contract wins and the successful integration of PSK. PSK secured MTI's largest ever contract in July, expected to be worth US$10m over the next 7 years, providing services and maintenance support to the Israeli Ministry of Defence. Reassuringly, management commented that the company's markets are nearly back to normal with shipment costs reduced relative to the high costs seen during Covid-19, and microchip shortages also reducing.
MTI is well positioned in a number of markets that are supported by strong secular growth trends, including 5G, advanced defence technology and water management. Continue to buy."
Shore Capital have reiterated their 90p target price and conclude:
"Outlook and valuation:
MTI will continue to seek to deliver revenue growth, both organically and
through acquisitions. We expect Summit/PSK to see continued good demand for its products and services. In our view, Mottech remains particularly well placed in the medium term to potentially see stronger demand than we forecast for its water management and control software. As well as defence-related activities, the Antenna division is expected to benefit from the rollout of 5G across the world, with the Indian market expected to be particularly interesting in the next year or two.
We initiated coverage with a 90p fair value on the basis of a DCF analysis, which is corroborated by MTI achieving an FY22F EV/EBITDA multiple of 13.7x (the average of our peer group at the time)."
News of a $0.75m contract win in the antennas division for a defence application - good to see it's to an international customer:
Https://uk.advfn.com/stock-market/london/mti-wireless-edge-MWE/share-news/MTI-Wireless-Edge-Limited-Contract-Win/89654026
my mo
You little devil!!
ST tips work like magic lol
New note out from Allenby - they have 90p fair value, with 4.1c EPS rising to 4.44c EPS next year and a $6.4m cash pile at the end of 2022, rising to $8.1m:
Https://wp-allenby-2020.s3.eu-west-2.amazonaws.com/media/2022/11/20221121-MTI-Wireless-Edge-Ltd-MWE.L-Allenby-Capital-Q3-Update.pdf?c3333=on
Summary:
"All divisions remain well placed for FY23 and beyond
Good Q3 update from MTI Wireless Edge Ltd (MWE.L), the technology group focused on
comprehensive communication and radio frequency solutions across multiple sectors.
Each division (MTI Summit, Antenna and Mottech) demonstrated revenue growth and
remained profitable. Overall, 9m revenue +8% to $34.8m and EBITDA +14% to $4.6m.
Net cash remains a healthy $5.2m, despite payment of the final dividend, the PSK
acquisition and Russian exit.
Q4 has started well with two contract wins already announced for the Antenna division in India and Israel worth $1.2m in total. India represents a major opportunity for MTI’s 5G backhaul solution given the number of Eband towers that will be required. The PSK acquisition is bedding in well and it secured the group’s largest ever contract in July with the Israeli Ministry of Defence. All three divisions remain well placed. No change to P&L forecasts or 90p/share fair value."
for quick flip (and I always bet against effects of ST tip lol)
tp 70p for decent value imv
"MTI offers investors exposure to climate change, too, through its Mottech real-time irrigation monitoring, control and reporting software offering. Municipal authorities, commercial organisations and the agricultural industry are all key end markets. Importantly, Borovitz reports a good level of renewals with key municipal customers, decent price increases, and a growing awareness of Mottech’s eco-friendly solutions which can reduce water consumption by more than a third. The division accounted for 36 per cent of MTI’s operating profit of $3.5mn in the nine-month trading period.So, with the order book in fine shape, and $4.58mn of house broker Shore Capital’s annual cash profit estimate of $5.7mn already booked, then MTI looks well on course to deliver the 10 per cent forecast rise in full-year pre-tax profit to $4.4mn on revenue of $45.7mn.
Analysts are looking for revenue of $48.8mn, cash profit of $6.2mn and pre-tax profit of $4.9mn in 2023, sensible projections in my view. On this basis, expect full-year earnings per share (EPS) of 4.1c (3.5p) to rise to 4.8c (4.1p) in 2023, implying the shares are trading on price/earnings (PE) ratios of 14.5 and 12.5, respectively.
Moreover, the board have a progressive dividend policy, having paid out 5.3c (4.5p)a share since I initiated coverage on the shares, at 40p (‘Alpha Research: Tapping into 5G climate change technologies’5 September 2020). Future pay outs are well underpinned by prospective free cashflow yields of 6.1 per cent (2022) and 8.3 per cent (2023) which in turn support forward dividend yields of 5 per cent (2022)and 5.5 per cent (2023).
Admittedly, MTI’s shares have drifted 10per cent since I covered the interim results(‘A smart play on defence spend, climate change and 5G’, 15 August 2022), albeit in an unfavourable market for technology shares. However, the investment case remains sound and the rating is modest for a cash-rich company servicing keym arkets which offer attractive structural growth: demand for next generation 5Gnetworks; climate change; and increased defence budget spending. Buy."
Here's the Buy tip:
"Ebitda up 14 per cent to $4.6mn on eight per cent higher revenue of $34.8mn in nine months to 30 September 2022
Operating profit rises 5 per cent to $3.5mn after one-off costs of PSK acquisition
Strong trading across all three divisions
Net cash of $5.2mn (5p a share) equates to 10 per cent of market capitalisation
Israeli-based technology group MTI Wireless Edge (MWE:51.5p) is realising material benefits from January’s $1.2mn (£1mn) acquisition of a 51 per cent stake in PSK, an Israeli developer, manufacturer and integrator of communication systems and monitoring systems for the country’s defence market.
Buoyed by contract wins including a $10mn award in the summer from the Israeli Ministry of Defence, and last year’s strategic agreement with a [undisclosed] major defence customer, MTI’s Summit electronics division increased operating profit by 40 per cent to $1.8mn on 19 per cent higher revenue of $12.4mn in the first nine months of 2022.
Representing 40 international suppliers of radio frequency/microwave components, the addition of PSK is enabling the unit to move up the supply value chain as well as offering turn-key solutions (fixed and mobile communication, telemetry and signal intelligence systems).The performance of the electronics unit was the key driver behind MTI’s eye-catching third quarter performance, the division delivering $0.67mn of quarterly operating profit, or more than half the total of $1.3mn, hence the 15 per cent profit growth reported for the third quarter.
Chief executive Moni Borovitz also highlights contract momentum in the group’s antenna division. For instance, last month MTI won two contracts worth $1.25mn including a 5G backhaul award in India, a key market for MTI. The country has recently completed a 5G auction that is expected to lead to rapidly increasing demand for new Eband towers. MTI isworking with five of the seven leading OEMs in the sector, so is well positioned to not only win contracts, but be able to fulfil them now that microchip componentsupply shortages are finally easing. In the third quarter, the antenna division delivered $0.16mn of operating profit, two-thirds more than in the whole of the first half."
A nicely confident results presentation just now. A few random highlights on top of the commentary in the Q3 results:
- in water management, Italy plans to spend a lot of money in the coming years, following the €1m initial orders announced in June, so much more to come
- in 5G, the first live trial of the new ABS antenna solution was completed two weeks ago and was very successful. It includes software which buyers pay to customise
- also in 5G, there are a huge number of Eband towers to be built globally, particularly in India, where MWE are one of only three companies able to manufacture locally, starting next year
I finally added a few last week as the lethergy wore off. Good rns but sadly many have other things on their minds...
Shore Capital retain their 90p price target. They also keep this year's forecasts of 4.1c EPS and a $10.8m cash pile:
"Outlook and valuation:
MTI will continue to seek to deliver revenue growth, both organically and
through acquisitions. We expect Summit/PSK to see continued good demand for its products and services, evidenced by the record contract win (for both PSK and MTI) from the Israeli Ministry of Defence in July 2022. In our view, Mottech remains particularly well placed in the medium term to potentially see stronger demand than we forecast for its water management and control software.
The Antenna division is expected to benefit from the rollout of 5G across the world, with the Indian market expected to be particularly interesting in the next year or two.
We initiated coverage with a 90p fair value on the basis of a DCF analysis, which is corroborated by MTI achieving an FY22F EV/EBITDA multiple of 13.7x (the average of our peer group at the time)."
I read it this morning at 07.00 and was so contented I went back to sleep. Roll on full year..
The results are good (if not spectacular), particularly in the current climate, with water, 5G/antennas and consulting all looking very positive. If it wasn't for a higher tax charge the results would be even better. MWE already have 3c EPS in the bank, and Q4 is normally their strongest by some margin.
But the tone of the outlook and narrative is as bullish as I've ever seen the normally conservative CEO. And there's the confidence to state that MWE are "well placed to deliver a good result for the year".
I particularly like the evidence that MWE are increasing their presence in working with nearly all the top telco OEMs:
"The division is working with 5 out of the 7 leading Original Equipment Manufacturers and, through the new ABS antenna solution, is now working with nearly all of the Tier 1 OEMs"
49p is in my opinion a very good price. I shall wait though and am happy if the ones I hold tick up.
filled @49p
yes I can sell my whole holding...but the price offered is 47p
if i sell <10k, price offered >48p
I'm trying to buy another 5k, limit 49.5p
This goes negotiated on HBOS... Even for really small buys.
bought yet another 5k (difficult to buy seriously atm)...hold c 80k
(still only a tiny fraction of what I used to hold here)
tp 70p++
Too busy today to consider a strategy today.... Jobs to do and people to see.. Next Monday is fine.
The Q3 results will be out next Monday 21st November, with an Investor Meet presentation. Looks like trading is at least in line as otherwise MWE would be obliged to say something:
Https://uk.advfn.com/stock-market/london/mti-wireless-edge-MWE/share-news/MTI-Wireless-Edge-Limited-Notice-of-Q3-Results-and/89538967
he he
the sharp recovery in AIM index (up 4% in last three days...with v little dipping) suggests you wake up
Didn't add. Overcome with lethergy....