Mti Wireless Edge Share Discussion Threads

[igoe104] 15/1/2025 20:03

Wonderful to see a cease fire in the middle east, could be a rerate for MWE, as they have three quality divisions.
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[rivaldo] 15/1/2025 10:11

Following yesterday's contract wins Shore Capital have reiterated their 80p target price.

With MWE forecast to have around 9p per share in cash, the 2025 forecast of 4.7c EPS means MWE are on an ex-cash P/E of only 11.2.

Shore Capital conclude:

"Outlook and valuation:

We make no changes to any of our group forecasts on the back of today’s news but, obviously, if further significant orders are secured then there is upside potential in FY25F and FY26F.

Our investment case is built on the premise that we believe that each of the divisions has growth drivers with, in our view, Mottech particularly well placed to potentially see stronger demand than we forecast. as its software improves the efficiency of irrigation systems, while reducing the cost of operating them.

However, as has been reinforced by today’s news, we expect to see good demand for the defence-related products. as they benefit from increased defence spending around the world. We also expect the rollout of 5G, such as in India, to lead to more contract wins in due course.

We maintain our 80p fair value on the basis of a DCF analysis, which is corroborated by MTI achieving an FY24F EV/EBITDA multiple of 12.8x (the average of our peer group)."

[049balt] 14/1/2025 20:46

Hopefully a re rating will occur now that the war is almost at an end.

[igoe104] 14/1/2025 09:23

New contract..

MTI Wireless Edge Ltd

("MTI" or the "Group")

 

New Contract Wins

 

MTI Wireless Edge Ltd (AIM: MWE), the technology group focused on comprehensive communication and radio frequency solutions across multiple sectors, is pleased to announce that its Antenna division has received three orders from a system house in Israel for the development and manufacture of military antennas worth a total of approximately US$1m, which are to be delivered over 2025.

Commenting on the contract wins, Moni Borovitz, CEO, said: "As announced several months ago, we continue to see a growing trend of local system houses outsourcing their antenna manufacturing and we are well placed to meet this demand. In this instance, we received two manufacturing orders, reflecting the customer's satisfaction from past services, and one development order for a new technology, which moves us up to a sub-system level, meaning we will provide further capabilities in addition to antennas within customer solutions."

[049balt] 07/1/2025 18:13

Ticking up nicely.

[alan@bj] 12/12/2024 16:49

Rivaldo - so you did. I should have read your post properly rather than skimming it.

[049balt] 12/12/2024 13:19

Private equity will spot an undervalued company and make a move. Watch this space.

[rivaldo] 12/12/2024 10:46

That's what I just posted about :o))

[alan@bj] 12/12/2024 09:52

Let's just hope they don't look to take it private at a bargain price.

[rivaldo] 12/12/2024 09:38

IMO the directors are buying to take advantage of a bargain share price given the fundamentals, the cash pile and the prospects.

MWE have been a quoted company for many years now. The directors have had plenty of opportunities to take the company private at cheaper prices when the share price was 25p, 30p, 35p...but they haven't.

I suspect the stock market listing gives them the credibility and sound footing which their mainly blue chip clientele (4 of the top 7 global telcos for example) require.

MWE are on the cusp of seeing all 3 divisions take off given the global rise in defence spending, the increasing implementation of 5G and the need for usage and cost savings in water irrigation and distribution.

All JMO of course, and I could be wrong! Anyway, the large director buying just before the year end is hopefully a positive indicator of what the year end trading statement will bring - it would seem nonsensical to be doing so otherwise.

[049balt] 11/12/2024 14:46

Likely a bid to take company private. Value will not be realised with stock market listing.

[igoe104] 11/12/2024 11:17

Yes Rivaldo, that's a Big Green flag...

[rivaldo] 11/12/2024 09:40

Extremely heavy director buying just before the year end...perhaps a bit of a clue to the year end results :o))

The CEO and Chairman's family company have bought £150,000 of shares and now own 33.11% between them.

Plus the Beer family have bought £193,000 of shares and now own a further 11.19%.

And MWE themselves bought in another 100,000 shares:

[rivaldo] 25/11/2024 08:55

Solid Q3 results, helping the nine months' EPS up 11% to 3.6c.

There's also almost $5m in the bank after $1.1m of buybacks.

Most importantly the outlook remains positive short and long-term, with 5G, defence and irrigation/water conservation all key global sectors for investment for the foreseeable future:

- "Q4 has begun well"
- new antenna solution now moving into pre-production
- MWE's own wireless irrigation controller being introduced
- Indian 5G sales rising on "new orders from a leading cellular service provider"
- "Increased demand for military antennas globally"
- Summit expected to have an improved Q4 for a number of reasons



Incidentally, Shares Magazine states that the Miton UK Microcap trust may well simply be "rolled into another of Premier Miton’s open-ended funds, so this may not be the end of the road for investors."

[cerrito] 19/11/2024 20:21

Note that MINI the Miton micro cap Investment Trust is going through a corporate reorganizatuon which may entail them aelling all or some of their MWE shares which at April 30 this year were valued at £1.26m.
You may want to follow how the MINI situation evolves.

[alex_mc] 19/11/2024 18:56

Do we know when Q3 results are due? Around now last year I believe….

[rivaldo] 26/9/2024 09:12

Yep, another $750k in the bank for the next 12 months, this time for military antennas.

Most importantly, this is for an entirely new customer and "this is the start of a long term relationship, which has the potential to be extended to other types of antennas."

MWE's sectors of 5G, antennas, defence and water-efficiency/saving products are all looking good now given the range of recent contract wins.

[igoe104] 26/9/2024 06:25

Another contract win.

[rivaldo] 24/9/2024 08:59

Shore Capital this morning retain their 80p target and conclude thus:

"Outlook and valuation:

We make no changes to any of our group forecasts on the back of today’s win but, obviously, if further significant orders are secured then there is upside potential, particularly, in the outer years. We noted at the time of the interims that MTI had confidence that Antennas and Summit continued to be well-placed to deliver improved profitability as FY24F progresses, which today’s news should help to demonstrate.

We continue to believe that each of the divisions has growth drivers with, in our view, Mottech particularly well placed to potentially see stronger demand than we forecast. as its software improves the efficiency of irrigation systems, while reducing the cost of operating them. We also expect to see good demand for the defencerelated products and services of Summit/PSK. Finally, the Antenna division is also likely to benefit from increased defence spending as well as the rollout of 5G across the world.

We maintain our 80p fair value on the basis of a DCF analysis, which is corroborated by MTI achieving an FY24F EV/EBITDA multiple of 12.8x (the average of our peer group)."

[049balt] 24/9/2024 08:04

What a resilient company mwe is, just a pity it is based in Isreal at the present time.

[igoe104] 24/9/2024 07:05

Most important thing about today's RNS, is the statement of more orders incoming...

[rivaldo] 24/9/2024 06:27

Big news - the first 5G contract win in India. The initial win is for $700,000 and is with "one of India's leading cellular service providers". Above all:

"if the initial order is delivered on schedule, further orders will be forthcoming. The Group estimates that these further orders will be considerably larger multi-million US Dollar orders."

Note also the headline to the RNS - "Indian Contract Win Adds to Strong Orderbook for 5G" - confirming that 5G demand elsewhere continues to grow:

[rivaldo] 20/9/2024 08:42

200,000 shares bought back at 46.5p is unusually large - hopefully a sign of how confident MWE are at this point.

[rivaldo] 17/9/2024 08:11

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."

[rivaldo] 11/9/2024 14:29

Great to see the continuing rise here, and to see the break above the late May high.

Johnthespacer, the buybacks do indeed benefit EPS. Take a look at the results if you want to be sure. The number of weighted average shares in issue for calculating EPS etc has been declining every six months - that's because of the buybacks (unless you can advise otherwise).

If/when the shares in treasury are reissued, because they've been resold to institutional investors for example, or indeed if they're cancelled, then the number of shares actually in issue will change once more and the number of shares upon which EPS is calculated will change once again.