Mti Wireless Edge Share Discussion Threads

[rivaldo] 15/6/2023 09:53

Here's a link to Allenby's latest note FYI:



Extracts:

"Q1: Solid start to FY23, growth drivers in all divisions

Solid Q1 performance from MTI Wireless Edge Ltd (MWE.L), the technology group
focused on comprehensive communication and radio frequency solutions across
multiple sectors. Revenue increased 1% to $11.3m and PBT by 15% to $1.1m, reflecting an improvement in gross margin, FX tailwinds and higher interest received. Net cash strong at $8.5m (Q1 FY22: $6.5m) but this did benefit from the FY dividend ($2.5m) being paid in April and March in FY22. On a divisional basis, all were profitable and there was revenue growth in Antennas and Water Solutions (Mottech) while Distribution (MTI Summit) was relatively quiet. The outlook for FY23 remains positive here as design wins move through to production. Medium term demand drivers for each division remain intact and we anticipate further growth at the top and bottom line. P&L forecasts and 90p/share fair value, equivalent to an FY24 EV/EBITDA of 13.0x and a yield of 4.1%, remain unchanged."

"Outlook: Demand for MTI’s comprehensive communication and radio frequency solutions across each division remains good with the ongoing challenge of water scarcity, the embrace of 5G and increased military spending given the global political situation. We expect continued profitable growth and our 90p/share fair value is unchanged."

[rivaldo] 12/6/2023 11:12

I was just re-reading April's issue of Techinvest and noted that MWE's 2022 results were well reviewed and Techinvest's review hadn't been noted here, so here's the conclusion (the share price was then 51.5p):

"MTI is a well-balanced business, with its three divisions all performing well and delivering on their respective growth strategies in fiscal 2022. The company grew in terms of both sales and profits and it is noteworthy that this was delivered despite the ongoing impact of the global chip shortage, which affected key components required in nearly all of the products and solutions sold by MTI.

Management reported that the business is seeing compelling opportunities in all operating segments, with the opening of the Indian market for E-Band 5G backhaul in particular representing a substantial opportunity for MTI over the medium term. The conflict in Ukraine has led directly to a significant increase in defence budgets and that too is likely to have a positive impact on the company's financial performance in the current year and beyond. Around 37% of MTI's sales are defence-related. Continue to buy."

[rivaldo] 17/5/2023 10:08

Shore Capital also have a 90p price target based on "conservative" forecasts.

They conclude:

"Outlook and valuation

We have consistently flagged since we initiated research coverage in May 2022 that MTI’s strong financial platform provides a base to grow sales both organically and through acquisitions, with any new business incremental to margins/profits. In our view, the group has demonstrated this with the organic growth in Summit in 2022 boosted by the PSK acquisition, while the Q1 FY23A results show good progress for Mottech and Antennas.

In the note that accompanied the FY22A results in March, we highlighted that each of the divisions has growth drivers with, in our view, Mottech particularly well placed to potentially see stronger sales 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 defence-related products and services of Summit/PSK. Finally, the Antenna division is likely to benefit from the rollout of 5G across the world as it already supplies seven of the top ten operators with its technologies.

We maintain a 90p fair value on the basis of a DCF analysis, which is corroborated by MTI achieving an FY23F EV/EBITDA multiple of 11.2x (the average of our peer group)".

[rivaldo] 17/5/2023 08:16

Allenby Capital have retained their 90p fair value price target this morning.

With 1.01c EPS in the usually much quieter Q1, MWE have made a very good start to 2023 and look likely to beat the forecast of 4.28c EPS for the year imo.

[rivaldo] 17/5/2023 07:57

Eh? :o))

Wrong thread mate!

[scepticalinvestor] 17/5/2023 07:55

Ouch 20p open?

[rivaldo] 17/5/2023 07:46

Agreed - a 14% rise in EPS and PBT up 9% is an excellent performance in current markets against most listed companies.

[hastings] 17/5/2023 07:31

Given the economic backdrop I'm happy with the update and content to sit tight. Excellent prospects going forward, particularly across water, with a nice div and a slug of net cash on the balance sheet.

[zipstuck] 17/5/2023 07:23

1% revenue growth. so flat line for the time being methinks

[rivaldo] 17/5/2023 07:21

Excellent Q1 results this morning.

EPS is up 14% and PBT up 9% in the normally quieter Q1, with the cash pile up to $8.5m (the divi being paid in April) and bringing in additional interest receivable, plus improved margins also helping the cause.

Each of the 3 divisions is performing well and there's confidence for the outlook in all of them. Water, 5G and defence are all great areas to be in and should continue to be so in the short and long-term.

There's also a notable mention of growth being acquisition-led as well as organic.

[rivaldo] 10/5/2023 10:17

New Mottech press release promises a "gamechanger" for the water industry:



Extracts:

"May 3, 2023
Revolutionizing the Water Distribution Process with Andromeda

Water is a scarce resource that needs to be managed efficiently to ensure sustainable use. The Andromeda Water Distribution System, developed by Mottech, is a revolutionary add-on module that enables the monitoring and control of water distribution systems irrespective of the number of consumers, valves, meters, or size of the distribution area. The Andromeda system presents a significant breakthrough in terms of water providers’ capabilities to meet consumer demands easily and efficiently and maximize available water resources, energy, and labor."

"In conclusion, water management is critical to ensuring sustainable use of this scarce resource. The Andromeda Water Distribution System, based on the IRRInet platform, is a revolutionary add-on module that enables water providers to manage their resources more effectively and meet consumer demands efficiently. With its user-friendly interface and automatic control of valves, the Andromeda system is a game-changer in the water management industry, providing water providers with a unique solution for managing online water orders and maximizing available water resources, energy, and labor."

[baldrick1] 02/5/2023 10:00

Opened a small position for a steady move up and dividends payouts.

[rivaldo] 02/5/2023 07:34

Good to see a sizeable share buyback of 100,000 shares at 51.75p - shows confidence:

[rivaldo] 24/4/2023 12:32

Brief update today from Allenby Capital with a 90p price target:



"Allenby Capital comment:

MTI's Mottech subsidiary has a number of long-term customers in the public sector where it helps customers reduce costs and water usage. Water scarcity and the smart use and efficient management of this vital resource remains a key global consideration and Mottech has demonstrated the ability to sell into multiple geographic markets but also expand into other markets (e.g. viticulture, fountain management). Mottech offers a proven solution based on Motorola's IRRInet control, monitoring and communication technologies. No change to forecasts or 90p/share fair value, equivalent to an FY24 EV/EBITDA of 13.0x"

[rivaldo] 19/4/2023 10:51

Shore Capital's update today reiterates their 90p fair value target price and notes that their forecasts are conservative:

"Conservative forecasts:

We have consistently flagged over the last year that MTI has a very strong financial platform and seeks to grow sales both organically and through acquisitions, with any new business incremental to margins/profits. At the time of the FY22A results in March, we maintained our group forecasts for FY23F and FY24F and introduced numbers for FY25F. We continue to forecast sales and profit progress in each forecast year. Obviously, we have not assumed any further acquisitions in our forecasts, so given the company’s record of earnings-enhancing deals, we would view any M&A as likely to boost forecasts and shareholder value.

Outlook and valuation:

In the note we highlighted that each of the divisions has growth drivers with, in our view, Mottech particularly well placed to potentially see stronger demand than we forecast for its water management and control software as demonstrated by today’s contracts. Typically, the software improves the efficiency of irrigation systems, while reducing the cost of operating them. Summit/PSK had a strong FY22 and we would also expect to see good demand for its defence-related products and services Finally, the Antenna division is likely to benefit from the rollout of 5G across the world as it already supplies seven of the top ten operators with its technologies. We maintain a 90p fair value on the basis of a DCF analysis, which is corroborated by MTI achieving an FY23F EV/EBITDA multiple of 11.2x (the average of our peer group)."

[robsy2] 19/4/2023 08:10

Damian Cannon makes a good case for MWE. It was a reminder of why I hold and am happy to do so .So much to like here for me . The panel response also makes the contrary arguments and the valuation is where it is. The fact here is the stock hit highs of around 90p in Q1 21, some 2 plus years ago.Investors in and around small caps seems more impatient than ever. I like the dividends and feel they can keep delivering so I'm a firm holder . I can't see the broader community rushing to buy more but that doesn't bother me unduly.

[weaverbeever] 19/4/2023 07:44

Places like California, Australia, southern Europe, Africa could all do with MTIs help. And there is money there. Surely this business has huge expansion opportunities if it were to get out and look for them

[rivaldo] 19/4/2023 07:34

Good to see though - lovely long-term recurring income over 5 years is highly valued by the City.

And it shows the trust the municipality has in Mottech/MWE.

Thanks for the link igoe104. The main presenter's Buy verdict on MWE was good to see, but agreed re the rest - mostly gross generalisations/irrelevancies and missing the wood for the trees, with just a couple of valid points.

[rimau1] 19/4/2023 07:16

Typical MWE, i get a little excited when i read “contract wins” and then remember that it usually underwhelms here… $2.2m combined value over 5 years from 2 existing clients. Yawn!

[igoe104] 19/4/2023 07:14

Nice contract wins..

[igoe104] 18/4/2023 13:59

Here is the Mellor discussion on MWE. 2 hours in.



Ps (That Mark Sampson is a complete idoit)

[rivaldo] 17/4/2023 14:04

Cheers davidosh. I won't be able to listen - hopefully someone else can.

News from Mottech:



"Implementation of Mottech ICC Pro Autopilot in Automated Farming Practices
March 26, 2023

Discover the power of our innovative ICC Pro Autopilot system that combines advanced irrigation control with accurate irrigation recommendations, leveraging AI, machine learning, and advanced sensing systems to revolutionize automation in agriculture.

How does the Mottech ICC Pro Autopilot system transform automation in agriculture?
Introduction to Mottech ICC Pro Autopilot

The Mottech ICC Pro Autopilot is a groundbreaking technology that combines advanced irrigation control with accurate irrigation recommendations. This unique solution integrates irrigation and sensing systems in a single-screen display, providing real-time irrigation operation based on sensing system recommendations. By combining AI and ML, ICC Pro Autopilot recommends the exact amount and timing of irrigation to maximize agricultural production.

Features and Benefits of ICC Pro Autopilot

Based on the collected data analysis, the ICC Pro Autopilot system establishes an irrigation protocol for all types of crops and soils. With a safety mechanism that prevents incorrect water usage, the system ensures efficient and sustainable irrigation management. With a user-friendly app, farmers can remotely monitor root activity and apply smart irrigation, making agriculture more efficient and accessible.

etc"

[davidosh] 17/4/2023 02:26

MTI Wireless Edge will be featured in the show tonight on the BASH session (Buy, Avoid, Sell or Hold)



Use code TwitMM50 for half price tickets

[igoe104] 23/3/2023 09:27

These are definitely one company I will be looking to top up with. If they are started integrating their Fountain / Lighting technology across major global cities, we should all do really well. Plus water irrigation and 5G and Defence markets are starting to look very healthy. Lots to be positive about for MWE...