Heiq Share Discussion Threads

[mmb007] 03/5/2022 13:38

Amazing how many investors/commentators on here clearly do not read the company releases or go to the trouble of watching the online web presentations. So many of the questions being asked on this chat are answered in full by a very competent and eloquent management team. All available on the HeiQ website. The performance of the share price is clearly frustrating to investors (as it is to management who own 23% - and have been buying recently), but this is a small cap company and that is often the case - if you don't like the volatility of small caps, don't invest in them I would suggest.... The Aeoniq business is worth $200m, as confirmed by Hugo Boss's investment and the expected future similar investment partnership deals to be announced this year. The balance sheet is very solid for a small cap company with over 10% of its market cap in cash and a further 10% of credit lines available. I actually think the biggest risk is that another company makes a hostile takeover given the low valuation and potential growth. It remains a very good long run bet IMO

[pugugly] 28/4/2022 21:12

edwardt - Fair comment but cash burn (imo) may well accelerate as a result of further negative changes in the macro environment if the war continues to grind on.

All projections will of course be useless if gas- biological - or nukes are used.

Possibly a Sisyphus stock.

So just to give you all nightmares here is a song for the 3rd World War - performed many years ago during the MAD years of the 1960's(some 80 years ago) and the 6 minute warning in the UK - slightly longer in the US -




Very appropriate as we are now seeing wars on Telvsion as predicted in this song.

[edwardt] 28/4/2022 19:17

The future come sooner than you think.That said, cash flow now to pay for it would be great!

[pugugly] 28/4/2022 14:28

Cenkos still trying to push water uphill. £100m market cap for a very much jam tomorrow company is (imo) a quite a bit too rich.

[pugugly] 28/4/2022 08:43

Singer very cautious (imo) My reading - Long on expectations but lack of clarity on chances of success and under cost pressures due to current global inflation .

[bad gateway] 28/4/2022 08:37

Disappointed with the vague update re Ioniq. Saw that as the catalyst for holding the share price up with current world events making trading at decent margins difficult.
See what the analysts think at their 9 oclock meet I guess.

[km18] 26/4/2022 12:00

Heiq plc is specialised in technology development to enhance functionality and sustainability of home textiles, technical and medical textiles while optimising hygiene. Given the ample product portfolio, the group is expected to report a revenue of $57.9m, 15% higher than last year and thereby ahead of market consensus. This evidence is supported by the concise P/S and attractive P/B ratios of 2.82x and 2.21x, respectively, which in turn is likely to force up the EPS growth of 58.3% further since the corporation has made further investments into the business to capture organic growth. As a result, gross margin is forecasted to reach 47%. with operating profit standing at $3.4m. Considering the robust demand for its products, revenue growth is projected to hike by 20%. Despite the robust financial performance, the firm’s stock price is undervalued, as illustrated by its low P/E ratio of 26.3x, relatively below the industry P/E ratio of 63.2x, hence it is cheaply available for investors to buy the stock. Consequently, it implies that Heiq is trading at a discount with respect to its peers and is expected to surge in value, since its EPS growth of 58.3% and P/B of 2.21x are above the sector threshold. Given that the firm’s PCF ratio leapt to 127.1x, the group’s operating, investing, and financing activities were funded more efficiently than its competitors, where a more aggressive working capital policy is established to generate ample returns on investments.

[prodough] 14/4/2022 09:10

Your analysis is like you are looking at a large cap mature company. This is clearly a jam tomorrow story so wtf are you on about? The HEIQ story is about the future pipeline of products and how they could create a great business. It’s not what margins are doing last year on new growing product lines. Maybe small cap growth stocks not for you if you need comfort from the metrics you highlight?

[bad gateway] 14/4/2022 08:09

There was no breakdown of sectors in last yrs trading update either, just a mention of viroblock doing well so maybe saving that for the finals?
Would have been good to have had a better update on the lycra deal though imo.

[pugugly] 14/4/2022 08:00

Also a possible red flag
"Following consultation with the auditors, the board has prudently determined to defer the recognition of certain revenues related to the achievement of technology milestones with The Lycra Company associated with HeiQ's AeoniQ technology from FY21 into FY22. This has resulted in a deferral of approximately US$1m of operating profit into 2022, previously expected to be recognised in FY 21. Noting the above factors, the Company expects to report operating profit of approximately US$3.4m and net income after taxation of approximately US$2.7m."
Now I wonder why?

Also - No breakdown across the sectors - What is being concealed?

[74tom] 14/4/2022 07:47

Beat revised top line revenue but gross margins missed by 3%. Operating profit of $3.4m missed the Cenkos forecast of $3.84m by ~10% & operating margin came in at 5.9%, well below the 7.7% forecast (and back in line with what they achieved in 2018 & 2019). H2 operating margins very poor indeed (H1 was 12.8%).

Still looks expensive at £100m market cap given the margin erosion, it looks to me as thought they’re chasing top line growth as a vanity metric which IMO isn’t going to help the share price.

[slim9] 06/4/2022 21:53

cheers . Interesting stuff.........

[asprat] 01/4/2022 10:50

Melton John - appreciate your info cheers

[melton john] 01/4/2022 10:41

asprat, Advfn only allow free users to post links which are on a whitelist. They change links to hxxp. Edit your post to hTTp and it will work.

[asprat] 01/4/2022 10:08

Should read https not hxxps (strange as copied and pasted)

[asprat] 01/4/2022 10:04

hxxps://goto.heiq.com/heiq-innovation-news-2022-3

New newsletter with lots of energy savings for users.

[edwardt] 29/3/2022 17:34

Nice article - clearly a first move advantage here - synthetic biology is clearly a game changer. I like the idea of my next suit purchase being made from ground coffee!

[pugugly] 23/3/2022 16:56

Very unloved or bad news breaking. 100K dropped at 71.26p ALL TIME LOW!!

Swiss are neutral so unlikely to be the Ukraine effect
.
So either a sell tip out there but 100K is well above normal PI holding level.

If an institution unloading prior to end of FY then just how desperate are they. If out at any price then guesses as to how low it can go?

Everyone must be under water now so if tax loss selling now started,,,,,,

[asprat] 16/3/2022 15:16

I am not sure what you mean. HeiQ AeoniQ is already in production they are scaling up with partnerships, Hugo Boss etc. (they’ll be another couple more announced before end April)

They’ll need fund raising in the future maybe for the large scale production, but that’s why they have the likes of Hugo investing 5% in HeiQ AeoniQ. And this share will be 3 or 4x more, if they need to upscale to this extent.

And they currently don’t have cash issues either.

Happy holding since IPO. Happy to top up now and again. Time will tell if I am right. GL

[pugugly] 16/3/2022 09:06

asprat - Yes - was in the trade many years ago - but new fibres take a long long time to become accepted and very often many glitches on the way - Masks provided the cash flow - Could run out of cash (imo) before the now products gain traction

[asprat] 15/3/2022 16:43

You seem to think the company just deals with masks! I think you need to research a bit more mate that’s the smallest string on their bow.

Eco-yarn is the big future money maker

[pugugly] 15/3/2022 16:08

8 times higher sell than buy volume - Looking very unloved - With many countries lifting masking restrictions looks as though potentially big reduction of revenue in this sector before the development sectors gain traction Could there be a new round of fundraising on the way.

[edwardt] 03/3/2022 14:01

i am no chartist but next resistance should be circa 140 to 150p