IC article out .....15 Nov 2021 18:20
'....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.'