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Report available from Equity Development: https://www.equitydevelopment.co.uk/research/guidance-beaten-in-fy23-and-unchanged-for-fy24
Hunting delivered EBITDA of US$103m, ahead of revised guidance and the inferred year-end expectation, representing a 98% y-o-y uplift (and 11.1% margin, +380bp). Significant contract awards boosted Subsea and OCTG activities in particular, but top line progress was also accompanied by good cost control to deliver the full year outturn. A record year-end order book position leaves the company well-placed to deliver further progress in FY24, where guidance is unchanged.
At the headline level, Hunting delivered group revenue growth of 28% and margin progress (ie gross +90bp to 24.5% and EBITDA +390bp to 11.1%), feeding into a fivefold increase in pre-tax profit with EPS up over four times in FY23. The full year dividend rose by 11% to 10c per share, covered twice by earnings.
Against our selected peer group average, Hunting’s P/E and EV/EBITDA multiples sit on discounts of 25-30% and 20-25% respectively. Taking a simple average of our P/E and DCF based analyses generates an unchanged fair value per share of 407p.
With HTG wmtgere will be a way back in unless a bid materialises.
I got that wrong!
Results were good but the market has been odd recently and with it being a general down day it looked like HTG was heading down first thing...I was caught out. But profit is profit. Well done to those who have held on here. It was a good update and this remains undervalued. I will be watching from the sidelines kicking myself!!
GL all!
Trimmed
I'm afraid I disagree with you MSM...I've just listened to there results presentation and it was impressive to say the least.
Hunting IMO is grossly Oversold and undervalued offering fair shareholdet value increasing the Divi ...I fancy it will drift up next week
Out for now. Results look OK but having been in and out of this share for a while my gut tells me this will drift down before getting back to 320+. Will keep an eye for re-entry later. GL
Wow incredible
Strong FY23 results from Hunting plc with revs up 28% to $929.1m, GM at 25% (from 24%), EBITDA +98% to $103m, Total divs of 10c (9c).
Encouragingly, the order book rose 19% to $565.2m which the CEO says ‘provides confidence in our near and longer-term outlook’
Not selling yet Mary! Looking good again... Let's see if this can break and hold above 320p
Haha - let me know when you sell :)
Only joking - HTG is a sound company but will add back as it falls, perhaps towards £2.20/£2.30 again in a US market correction in the next few months. No hurry at the moment although tempted to nibble, shortly but will hold out for now as SDRY is taking off again.
I well and truly cursed that!
This time I actually have funds available after a dabble in HBR so if we see 270p I will be adding here
Seems to have been a trim spike as we drift down again to the 270/75 area.
Surprised to see this up nearly 5% today.... Something brewing?
The valuation is good for entry as well: Hunting's price/earnings ratio has halved in the past year, to under 10 times. This is a result of weaker shares and earnings forecasts climbing in the same period. Time to make the most of this discrepancy.
Nice move up today, trimmed of course.
Hunting PLC hosted an Investor Presentation for investors following their recent FY23 Trading Update. Jim Johnson (Chief Executive) and Bruce Ferguson (Finance Director) discussed the company's diversified product portfolio and their 2023 highlights.
Management also ran viewers through their strategic roadmap to 2030, and answered a wide range of questions submitted from the audience.
The full video has been divided into chapters as below:
0:00:03 Welcome to Hunting
0:03:07 Diversified product portfolio
0:11:48 2023 Year-end Trading Update
0:14:53 2023 - a year of delivering
0:19:48 Hunting 2023 roadmap
0:21:50 Questions & Answers
Link to video: https://www.equitydevelopment.co.uk/research/investor-presentation-with-qa-11-january-2024
Looking great hopefully a bid before long
12-Jan-24 08:44:13 282.50 50,628 Unknown* 281.00 282.50 143.02k O
Waste of time here ,,, any update ?
Hunting holds guidance on strong order book, product sales
Wed, 10th Jan 2024 07:43
Sharecast News
(Sharecast News) - Precision engineering group Hunting held annual guidance as energy-related and non-oil and gas product sales helped to deliver solid top line growth in the year.
In a trading update on Wednesday, the company confirmed forecasts of core profit for 2023 of between $96m and $100 million, with group revenue estimated to range from $925m - 930m.
Sales into South America were strong as drilling in Guyana and Brazil increased, while activity across Asia Pacific accelerated as drilling momentum in India and the Middle East improved, said chief executive Jim Johnson.
The group's sales order book continued to strengthen through the final quarter of the year and was now approaching a record level of $575m, following a further large order win for titanium stress joints and OCTG Accessories for clients operating in the Black Sea and South America respectively, he added.
Hunting added that given the record sales order book, the board believed that 2024 will see further growth to EBITDA with the projected outcome in line with current market expectations of $125-$135m.
Reporting by Frank Prenesti for Sharecast.com
It's up on a market down day so can't complain.
No think it is all good.
The update looks ok, but the contracts won seem to represent 6mths revenues. Will that be viewed negatively by the market?
New report here: https://www.equitydevelopment.co.uk/research/in-line-fy23-update-further-progress-anticipated
Good revenue progress, a strong EBITDA uplift (and margin expansion), an ungeared year-end balance sheet and the in-year launch of an ambitious 2030 strategy represents a healthy FY23 scorecard for Hunting. Furthermore, additional order book growth and unchanged management guidance positions the company well to achieve further progress.
A number of large contract awards announced at the end of FY22 and as FY23 progressed contributed meaningfully to the FY23 outturn. In addition, Hunting ended the year with a record US$575m order book (versus US$473m a year earlier).
Hunting’s balance sheet is confirmed to be broadly funds neutral at the end of FY23: indicative, we believe, of good cash collection in H2/Q4 on an elevated revenue base. Together with further anticipated earnings progress in FY24 and FY25 feeding into positive cash generation, this provides a strong platform for prospective M&A activity and potential further earnings upside.
ED estimates are unchanged at this stage, as are previously identified peer group discounts of c. 20-30%. Our fair value is also unchanged in US dollar terms, but after adjusting for FX changes now translates to 407p / share - still almost 50% higher than current levels.
My read is in line and positive for the year ahead. They delivered on their target for cash at bank / debt which I was concerned about. May not be fireworks today but should bode well for the future. GL all.