Techinvest say Buy, "attractive"17 Sep 2024 09:13
Techinvest's recent September issue reviewed the interims as follows and concluded (noting too that MWE had a 4.7p per share cash pile):
"A strong performance from the Antenna division was driven by a high level of demand for both military antennas and the group’s 5G backhaul antenna solution. This trend looks set to continue, with significant order backlog and an increased number of opportunities in the pipeline. Despite lower sales for Mottech, profitability in the first half was substantially higher, reflecting a higher margin business mix and successful price increases.
The board reported that third quarter trading in the division has started well and prospects in Europe for the fourth quarter onwards in particular look positive.
The long-term driver for Mottech is the continuing global problem of water scarcity. According to figures from UNESCO, 2.2 billion people still live without access to safely managed drinking water and 3.5 billion lack access to safely managed sanitation. Moreover, the problem of water scarcity is no longer restricted to underdeveloped countries located close to the equator, with the issue now affecting significant parts of Europe where water levels are dangerously low.
Mottech has established a strong position in this market segment through its remote control and monitoring solutions for water and irrigation applications.
Trading on a prospective P/E of 11.5 for the current year, and offering a useful dividend yield of 6.2% for investors who like to have some income, the shares remain an attractive proposition. Buy."
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