Cobus Loots, CEO of Pan African Resources, on delivering sector-leading returns for shareholders. Watch the video here.
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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
with the notice of results/ results poised for the next couple of weeks, have you fellas been accumulating ahead of the event/s?
Excellent news supporting next year's revenues:
Https://uk.advfn.com/stock-market/london/mti-wireless-edge-MWE/share-news/MTI-Wireless-Edge-Limited-5G-Contract-Wins/86428625
" 5G 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 antenna division has received blanket orders for 5G backhaul antenna from two key customers. The combined orders are worth approximately USD $0.85 million and are to be supplied in 2022.
MTI's CEO, Moni Borovitz, commented : "These significant new orders demonstrate the strength of our 5G backhaul solution and our customers' satisfaction with it. The orders are expected to be supplied before the end of 2022 and will be part of our expected uplift in 5G sales next year."
https://twitter.com/surprised_trade/status/1455435292945571841
further 5g contracts
#wormturned?
finally finally lol
https://twitter.com/surprised_trade/status/1454018415937589249
MTI’s impressive interim results highlighted the ongoing structural growth drivers across all three of its divisions: global warming and climate change; increased defence budget spending; and demand for next generation 5G networks. IC have target price of 100p
4 broker updates on 26th Oct for KETL Shore Capital says sell, no target price given
3 buys Berenberg target 360p
Peel Hunt target 380p
Liberum target 460p
KETL trading around 290p
https://youtu.be/-tMgF2KV25A
Lots of positive drivers and reasons to feel optimistic about MTI
FYI the new Techinvest issue is now out, so it should be OK to publish the comment from its Portfolio Update in the last issue:
"Two other holdings in the Portfolio, CentralNic and MTI Wiresless Edge, are moving up the quality rank, though still not fully appreciated by the market at this stage. We feel both have significant potential to surprise on the upside and win recognition for their strong business models and high rates of customer retention. CentralNic issued excellent interim results late in the month which we will review in the September (me - they mean October) issue."
#lift-off
tp 80p++
here or hereabouts??
Excellent news - a new three year strategic agreement with a major customer, with an option for a further two years.
This formalises an existing long-term relationship and provides security for a large slice of - and likely now increased - future revenues. Plus of course it's a great validation of MWE's quality and trustworthiness:
Https://www.investegate.co.uk/mti-wireless-edge--mwe-/rns/strategic-customer-agreement/202109301001525473N/
https://twitter.com/surprised_trade/status/1422842958798376960
three-year strategic agreement with large long-term customer operating in the defence sector with the option for the client to extend the agreement by an additional two years.
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 subsidiary, MTI Summit, has a signed a three-year strategic agreement with a large, long-term customer operating in the defence sector with the option for the client to extend the agreement by an additional two years.
The new strategic agreement confirms MTI Summit as the primary supplier of an extensive range of components with pre-agreed pricing, enabling the customer to make orders quicker and more efficiently than the current process. In recent years the customer has ordered approximately $4 million of components from the Group per annum and with this agreement in place the MTI Board believe that the level of future orders is likely to be higher.
& oh so quiet here