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They release a new iphone every September. This one has a new camera facility and battery life. They have also included a budget version too.
Cannacord have reduced their target to 80p from 85p today. That still suggests 60% upswing. Albeit the brokers here have always been way out.
ADVFN chat suggested share price is 40% below NAV. Albeit IPO could not realisitically sell all their holdings tomorrow for 1.1bn.
Does seem to be someone taking a punt at these prices as the price keeps bouncing back.
They have made a loss for last 18 months. So down 330m or so? Woodford has not yet sold his Oxford nanopore stake yet. Be interesting to see what price he might get?
Not read report in huge details. At present they are taking bigger losses compared to gains on investment. Still be a while before one of these investments really takes off.
If the results were that bad this would of tanked. It's holding up quite well really.
I have no idea. I think they are prime for a takeover once they cut out costs. Only reason to merge is to slash costs. Share premises in the UK. Reduce headcount where there is duplication. Accountants? Other areas?
My main worry is Italian accounting.
Personally I think we got done over on this takeover. They dropped Sec's price 33% after deal was agreed. Sec share price is down 66% from it's high of 124p. Lot of this to do with the big investment it made in Porta at 3p or so. So it has written off 2-3M pounds. I am still worried about Sec's debt they are taking on here.
Can they make Porta profitable? Hmmmm.
They have been talking revenue growth of 40% year on year for 2-3 years now. Fact is revenue has barely changed.
Revenu per year.
2014 -112M - 1.9m profit after tax.
2015 -114m - 20.1M profit after tax.
2016-132m - 19.44m profit after tax.
2017 - 156 - 24.5m PBT
2018 - 154 - 14m PBT
2019 - 147M? To date 10m loss after tax.
In last 3 years it is likely revenue has actually fallen. I think they are unlikely to make much over 147M this year.
So in 5 years revenue is up 30%? Albeit profits are down hugely. They were making 20m profit after tax on much lower revenue. Which would suggests costs are up and margins on contracts down! (Squeezed on price?) Higher revenue adds no value if your not making money.
ODEY ASSET MANAGEMENT LLP increased short by 0.04% yesterday to 1.8%. Share price still on the up here.
Nice post QD22. It will all come down to cost! Solar panels are not cheap now. Will people be willing to pay the cost of this new tech? You would hope if more efficient then yes. If cost is prohibitive it may stop initial usage.
Short wise. Odey increased again on the 4th by 0.19%. Now up to 1.76% of IQE shares.
If IQE can fill this spare capacity production then figures for 2020 can't be as bad as this year. They are getting in more orders. These new orders should start to cover costs and lead to a profit. Of course they were making a profit before changing around all their facilities and investing 90m in capex. Perhaps macro environment just caught them off guard.
What is fair value here now? 50p? Higher? Lower?
UT price 49.28p. Volumes below 2m. Most people who wanted to sell here have probably already got out. Rest are holding out on hope things will get better.
ODEY ASSET MANAGEMENT LLP have increased their short by 0.26%.
Also this on IQE website.
Scaling up the production of highly efficient solar modules
04 September 2019
Cardiff, UK, 04 September 2019: IQE plc (AIM: IQE; "IQE", the "Group"), the leading supplier of advanced wafer products and material solutions to the semiconductor industry, has joined a new consortium, HIPERION, which has been awarded €10.6 million in funding by the European Union. This grant will aid in establishing a pilot assembly line to bring breakthrough photovoltaic technology, designed by Swiss startup Insolight, closer to market. HIPERION was set up by a 16-member consortium of research organizations and leading industry partners and is being coordinated by CSEM. It will ultimately strengthen the competitiveness of the EU’s solar power industry in the high performance segment.
The BOD are losing money here too as the shares they own are worth a fraction of what they used to be. It's fair to say IQE have run into this like a charging bull smashing the china on the way. (No pun intended.)
Planned spending this year of 30-40m on capital expenditure on a very weak market. Ackkk. Didn't they say they had stopped spending money in a previous update? Or was this money invested before they realised the mobile market was dying on it's feet. I think the US Trade war has forced them to spend millions in Taiwan. They have capacity if they manage to get all these new orders. Right now many of these facilities simply are not being used to capacity. So they just eat into the bottom line. Welsh facility at 10%?
Since 2018 they have spent 66m on capital investment. I think this could be even higher come year end. They have borrowed 11.47m according to the accounts. They have a debt facility of 57m now. Of which 12m has already been drawn down. They must need working capital to run this business.
'On 29 August 2019, the Company agreed a new £30,000,000 Asset Finance Loan facility, provided by HSBC, which is secured over the assets of certain IQE subsidiary companies. The facility has a five year term and an interest margin of 1.65% per annum over base rate on any drawn balances.'
Last year they had 87-88m turnover on wireless. In H1 this was just 30m. Photonics is up to 35m it made 66m last year. So H2 last year they made 36m. So this is in fact down on last 6 months. Adjusted Operating profits for Photonics is down nearly 60% in H1. 8.5m to 3.2m. Same for Photonics 4.3m to 1.5m.
Central operating costs up 1.6m on top of this. No wonder they are strugglng with costs and operating margins slashed.
Overall they need a big increase in orders to try and share out some of these fixed costs. There is a lot going on in these accounts and I am no accountant. It makes grim reading.
Was this just a bad H1? I am not sure they can reverse a 10.7m loss after taxes. (6.9M taxes) I always said H1 results would not be great. I was right yesterday predicting a loss here. Edison are predicting 5.4m profit before tax for 2019. So Taking off 6.9m gives a loss for the year. I assume there will be more tax to pay in H2?
They need a strong 2020 H1 performance. Jam tomorrow feelings all over again. Good luck all I hope these new orders here can pick up some of this slack. They need these orders just to reduce their losses here. Remember Edison are paid to make these reports.
There were 2 big trades of 600k and 650k around 3pm. Both likely sells?
Overall news is mixed. Many stating investment and weak demand for handset has resulted in the loss. They seem to be expanding Taiwan facilities and US facilities. If they had all this spare capacity why build a Welsh factory? Still seems to be a lot of positivity around 5G. Wireless revenue down 29%. Lot of spare stock in the supply chains.
'Wireless revenues fell by 29% y-o-y during H119 to £30.1m. Although Photonics revenues (which include those previously categorised as attributable to infrared products) grew by 18% to £35.5m, reflecting multiple VCSEL ramp-ups, this was not sufficient to offset the wireless slowdown. Group revenues decreased by 9% y-o-y to £66.7m. As most of the costs are fixed, the drop in revenue resulted in an adjusted operating loss of £1.9m vs an adjusted operating profit of £7.6m in H118. The group moved from £20.8m net cash at end December 2018 to £0.8m net debt at the end of June 2019 as management continued to invest for future growth. Capitalised development expenditure totalled £4.8m and capex £19.0m. This included completing the infrastructure phase at the Newport Mega Foundry in Wales as well as capacity expansion in Taiwan and Massachusetts. '
Very good summary by Edison. Albeit they have not changed their numbers at the top. IQE have spent heavily on investment here. Partly why they now have 0.8m debt.
Even with all those new orders they are still only expecting 140-160 revenue. I guess many will arrive too late for 2019. Margins are down. Be amazed if this reached £2 any time in next 5 years. At present 50p is market price. They are burning cash.
They are reiterating full year guidence of 140-160m. They say they have match their June forecast.
So H2 Revenue to be 52-58% of all revenue. Looks like wireless has taken a hit but photonics doing much better.
Taiwan increased capacity by 40%.
Net debt/funds of 0.8m. Where did that 90m go?
Have a good day all. Not sure how market will take this. Is this what the market expected?
'Among the companies set to update markets on Tuesday is semiconductor manufacturer IQE.
Deutsche Bank's Robert Sanders forecasts the company will post first half sales of £66.3m for a 9.6% drop in comparison to their year earlier level.
And together with a higher cost of sales, higher general and administrative expenses are expected to result in an adjusted operating margin of 1.5%, versus 10.4% 12 months before.
The company's adjusted profits before tax meanwhile are pegged at £1.0m in comparison to the year ago figure of £7.7m.
Tuesday 3 September'
See what tomorrow brings.
I missed this. They seem to be using a new link? Updated 31/07/2019.
OppenheimerFunds 140,138,507 - 17.68% - Down 6000 or so.
T Rowe Price International 74,494,784 - 9.40%
Hargreaves Lansdown Asset Mgt 53,517,719 - 6.75% Up 750k
T Rowe Price 43,979,170 - 5.55%
Dr Andrew W Nelson - 36,140,417 - 4.56% - up 7.8m
Schroder Investment Mgt - 33,786,565 - 4.26% - Down 1.1m
Interactive Investor - 31,448,184 - 3.97% - Up about 80k
Barclays Wealth - 26,418,588 - 3.33% - Down 3m
So the big fallers account for about 4.1m shares.
Big risers 8m of issued shares and 1m or so.
I think T Rowe Price are up about 8m. Hard to know with them as they are constantly loaning out shares.
No sign of KUWAIT INVESTMENT AUTHORITY. Guessing with issued shares they fell below 3%.
Half year results tomorrow.
Full year results due out 24/03/2020.
The 2xRNS felt more like PR pushes to up the share price. In the end it was more like a shorter showcase of how to make money and influence the share.
I think you have to hope the news next week will be good. Sadly not much will really change in 1-2 months. All the results will do is show how they are really doing financially. A loss, (I think very possible) would not be good.
Edison suggested PBT for year was expected to be 5.4m with revenue higher in H2 from new business. After tax I don't think that would leave much. Which makes me worried for H1.
Should definately get some sort of trading update next Wednesday. First key thing for me is a profit. Then revenue compared to what they expected. Maybe also news on new clients? Then it will be a matter of margins and effect of China/US trade wars. Maybe an update on 5G? his company can't be just about jam tomorrow.
What else good or bad could we expect?
UT price appears to be 52.25p. Which makes me think lot of the rise to 70p was market hype or pumping and dumping from shorters/funds. Otherwise why would it not head back? Only 2 months into H2 so maybe too early to call it?
Wonder how many of these IP Group are involved in. I count 3 of the final list. Overall it seems many of these firms are struggling. Scroll to end of article to see full list.
This will only put more pressure on him to sell his stake here. The question is how are a lot of these Ltd firms of IP group actually doing? Nervous times here. Pretty sure people still dumping shares in the background here. Maybe other funds will take a punt at below 60p? Fidelity and T Rowe Price maybe? Hmmm.
'Newgate Communications has been appointed by The Economist to lead communications for its Open Future Festival initiative in Manchester.'
They are also up for the Holmes Report Corporate/Financial Consultancies of the Year. Holmes pointing to their Asian operation.