Solid State Share Discussion Threads

[boadicea] 27/3/2024 09:47

I agree there is an element of windfall in this update. However, the company is typically cautious in its forecasts and prefers to update with a beat. So I would not be surprised to see it later update to a match or even increase in revenue for 2024-5.
Congrats on taking a profit now (rarely wrong.) Ideas for reinvestment or sit on the cash? Could I suggest a glance at OXB while in its state of post-covid depression but with a very promising start to its reinvigorated thrust into cdmo lentivectors ĺeveraging its unrivalled bioreactor expertise?

[rivaldo] 27/3/2024 08:16

I decided to sell and take profits first thing after the "ahead of expectations" update this morning. Counter-intuitive really!

But the outlook going forward is pretty subdued - Cavendish's new forecast for the coming year to March '25 has been reduced to 65.7p EPS, leaving SOLI on for me too high a P/E going forward in difficult markets.

SOLI are a quality company and may well prove that forecast conservative, but better to be safe than sorry for the moment if SOLI's share price drops back to say 1000p-1100p.

[boadicea] 12/2/2024 13:42

Jolomo - I'm expecting rather more from SOLI than DSCV is currently reporting and it looks significantly cheaper. SOLI has performed comparatively well in the recent past and the periodic dips in the share price may be associated with some profit taking or position trimming in a thin market rather than views of its prospects. Anyway, it's bouncing nicely so far today and has encouraged me into a modest top-up.

[jolomo] 07/2/2024 11:13

I'd guess that reaction to a modest DSCV update yesterday.

[primarch1] 07/2/2024 10:53

Really doesn't want to go past 14 seems a dramatic pullback however considering the interims were positive

[scottishfield] 31/1/2024 15:56

Tks Riv. We're suffering a bit from lack of volume, so some patience is needed. I added a small few yesterday.

[rivaldo] 31/1/2024 11:43

Nice - WH Ireland have today initiated coverage on SOLI with a 1650p fair value price target, and an "undemanding" current valuation.

They summarise in a 24 page research note:

"Valuation attractive for high-quality business:

With multiple avenues for growth and a record of surpassing conservative earnings guidance, we view the current rating as unjustified for a company of this quality"

[rivaldo] 02/1/2024 09:40

And to you scottishfield.

Great to see the share price here at new recent highs now.

[scottishfield] 29/12/2023 11:59

HNY to holders here.

[rivaldo] 05/12/2023 11:43

Cavendish (Finncap) have retained their 1620p price target, with the recently upgraded 85p EPS and a 21p divi forecast for this year.

They summarise:

"Divisions.

Overall, the defence and security sectors remained robust for obvious geopolitical
reasons. It also saw strong growth in IoT component demand as well as good demand in the medical sector, with strong demand for its design in capabilities strengthening its product pipeline. The Systems division saw growth of 136.3% to £56.7m, boosted by the Custom Power acquisition and £23.4m of revenue from the large military contract. Integration benefits are starting to accrue from combined efficiencies and operational collaboration. The Components division revenues at £31.4m, were comparable with H2 2023 in dollar terms, albeit following a very strong prior period.

- Forecasts.

Outlook comments point to the group trading in line with existing FY24 expectations, which were upgraded at its recent period end update. We therefore maintain our adj PBT and adj EPS forecasts for FY24 and FY25, with a minor cash improvement.

- Valuation.

The shares have recovered from previous weakness and have narrowed its P/E
discount to its peers. We maintain our 1620p TP, based on a target FY25 P/E of 19.4x. We continue to see good momentum, with conservative guidance, but where a strong balance sheet and a capable and ambitious management keen boost growth via EPS-accretive acquisitions."

[garbetklb] 05/12/2023 08:04

I'd not be so confident of a significant full year beat.

The £23m NATO contract, which I guess to be radios to Ukraine, is a distorting one off. Taking that off H1 gives base income of around £65m - so £130m assuming flat in H2. Then adding back NATO gets us to the analysts estimate of £155m.

Assuming a bit of growth in H2 would give a modest beat.

[rivaldo] 05/12/2023 07:29

Encouraging H1 results today.

SOLI confirm that they're trading nicely in line with forecasts which were upgraded after the last update, but the figures show that actually there's still decent headroom for beating the higher expectations.

Adjusted PBT of £7.3m - up 39% - is over 58% of the £12.5m forecast for the year, and the 46.8p EPS is almost 55% of the forecast to 31st March.

So SOLI don't need much in H2 just to meet expectations, and may well do much better than that.

Plus good cash flows continue to reduce debt to almost nothing, so we could see further acquisitions from the "healthy" acquisition pipeline.

I also liked the sound of this:

"Pleasingly, post Period-end we have secured a design and build programme for a smart battery in a hand held industrial device with a new global client"

[rivaldo] 24/11/2023 09:39

From Mark Watson-Williams on Master Investor last night:

"Solid State (LON:SOLI) – 17% CAGR In Sales To 2030

This £150m capitalised Redditch-based group designs and manufactures electronic equipment and supplies the value added electronic components and materials in the United Kingdom, rest of Europe, Asia, North America, and internationally.

It operates through Components and Systems divisions.

The Components division provides owed brand manufactured components, franchised components, and the provision of value-added services, such as sourcing and obsolescence management.

It is a specialist in designing-in innovative, valuable, technical solutions for customers seeking cutting edge, electronic, opto-electronic, electro-mechanical components, and displays.

The Systems division provides systems solutions, which include industrial computing and vision systems; custom battery packs providing portable power; energy storage solutions; and advanced communication systems, encompassing wideband antennas and radio products.

The company supplies opto-electronic components.

It serves the security and defence, medical, greentech, energy, transport, and industrial sectors.

The company issued a strong first half Statement at the end of last month stating that:

“The Board is very pleased with the ongoing delivery of Solid State’s growth strategy.

As a result of the strong start to the year, on a full-year basis, the Directors expect to deliver stronger than anticipated organic revenue growth, meaning the Group is expected to be marginally ahead of current consensus revenue and adjusted PBT expectations for the year ending 31 March 2024.”

Analysts John Cummins and Charlie Cullen at WH Ireland have a ‘fair value’ estimate on the group’s shares at 1550p.

For the current year to end March 2024 they see revenues of £155.1m (£126.5m), while pre-tax profits could come in at £12.5m (£10.8m), raising earnings to 85.1p (80.7p) per share.

Andy Chambers and Natalya Davies, analysts at Edison Investment Research, note the group’s strong organic growth in the first half, as well as its ambition to deliver compound annual growth of 17% in its sales up to 2030.

This is yet another group that has its Interims due to be published on Tuesday 5th December.

Its shares, which have been down to as low as 1010p just a month ago, have subsequently perked up considerably, closing last night at a much healthier 1325p.

They have been up to 1475p this year, while the consensus views suggest 1620p is around the right ‘value price’ – so Hold on for more positivity"

[rivaldo] 09/11/2023 15:33

Cheers scottishfield, you too. Doing OK here so far :o))

[scottishfield] 08/11/2023 14:32

Good to see younin here riv, best of luck.

[rivaldo] 08/11/2023 11:16

Buying now at the full 1290p offer price.

[primarch1] 01/11/2023 10:19

Tipped in the ic and down she goes

[rivaldo] 31/10/2023 08:14

.....talking of which, a new contract for CYAN announced this morning is presumably good news for SOLI too:

[rivaldo] 30/10/2023 22:54

I bought some first thing this morning for the first time, SOLI having been on my watch list for sme years. The defence aspect in particular is a great tailwind in these markets along with the high tech nature of its other products and markets such as the promising partnership with CYAN.

Hopefully a push back up to 1500p is now on the cards.

[primarch1] 30/10/2023 09:04

Nice results bought last week on how cheap they were looking,in the current world climate I would expect more contracts in relation to military supply nicely long term hold.

[boadicea] 30/10/2023 08:44

TSM - You were right!

Strong bounce back on this morning's update. I hope it doesn't attract too many financially squeezed sellers as so often happens on good results in this market.

This is a very 'open' company from a shareholder's viewpoint. The nearest equivalent in approachability that I have found is SRT, but SOLI is a much steadier performer.

[the shuffle man] 17/10/2023 13:08

Dont understand the pull back here. Trading statement due by the end of this month should hopefully confirm the upgraded figures with a strong outlook. Defense business should be booming.

[dab26] 22/9/2023 16:42

I was just wondering that myself.

No idea I'm afraid. I can't see any news...

Tip-sheet comment somewhere perhaps...?

[brad_k] 22/9/2023 16:30

Anyone know the reason for the fall today, getting on for 10% ?

[boadicea] 09/8/2023 09:34

I note that Cyanconnode has secured a further extension to their smart meter orders for which SOLI are a critical component supplier as announced previously. It is not clear to what extent CYAN have already pre-ordered to cover potentially tight supplies but it will presumably advance the actual delivery schedule with feedthrough to revenue and profit here.