Mti Wireless Edge Share Discussion Threads

[johnthespacer] 10/9/2024 16:32

They are bought back but not cancelled but held in treasurey to aid liquidity... so not affecting eps etc

[049balt] 10/9/2024 12:43

Something stirring here...

[rivaldo] 09/9/2024 11:08

Nice start to the week, and on higher than usual early volumes too.

[rivaldo] 04/9/2024 06:18

Another 50k of shares bought back yesterday means that MWE have now bought back a sizeable 1.813m shares in total.

This year's H2 and full year EPS will of course benefit nicely, plus MWE will also save on the cost of the forecast 3.4c dividend (unless MWE re-sell the shares at a profit as they've often done previously).

This unusually large level of buybacks reflects the similar amount of confidence shown in their recent outlook statement:

[rivaldo] 02/9/2024 09:28

Shore Capital retain their 80p target (almost 100% upside), plus their forecasts of 4.5c EPS and $9.3m net cash. Apart from noting the detail of today's contract win they summarise:

"Most importantly, in our view, new business wins are expected to drive revenue growth in the remainder of FY24F and future years giving us confidence that our forecasts will be achieved. Moni Borovitz, CEO, said: "This order is the result of the success of our design wins in recent years. It includes several components that were designed by our team as part of a customer’s solution and we are now seeing the benefit from this customer’s success in the international market.” We would therefore expect to see further contract wins across the group in due course.

Outlook and valuation:

We made no changes to any of our group forecasts on the back of the H1 results. We were encouraged by the improved EBIT margin for Mottech in H1 and the confidence that Antennas and Summit continue to be well-placed to deliver improved profitability as FY24F progresses, which today’s news helps 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)."

[rivaldo] 02/9/2024 06:15

Nice - a large €2.6m contract win for radio frequency components to the defence sector:

[rivaldo] 22/8/2024 08:26

Allenby have also issued an update, with a 75p fair value. They estimate 4.56c EPS and $8.7m net cash this year and summarise:

"Solid H1; encouraging signs in Q3

Solid H1 from the technology group focused on comprehensive communications and radio frequency solutions, with each division (Antennas, Mottech and MTI Summit/PSK) remaining profitable. Group revenue was flat at $22.3m but there was good growth in EBITDA (+18% to $3.3m), reflecting a more favourable business mix and cost control, and cash remains strong at $5.5m (FY23: $8.8m), following the FY23 dividend ($2.7m) and share purchases ($0.6m). This latter facility has been increased by £0.3m.

Q3 has started well with demand for products remaining high and enquiry levels for future projects at an all-time high, largely relating to the global defence sector. There are also encouraging signs for Mottech, particularly in Europe, and there is good interest in MTI’s 5G backhaul antenna solution, although the timing of contracts here remains unpredictable. The domestic situation remains challenging but our unchanged forecasts assume a return to revenue growth in H2 and we retain a 75p/share fair value."

"Outlook: Product demand is high and enquiry levels at record levels. Q3 trading has been positive, and MTI remains hopeful of securing material contracts in H2."

[rivaldo] 21/8/2024 11:06

Shore Capital have an 80p valuation, and forecast 4.5c EPS and $9.3m net cash (against a £32m m/cap) this year. They summarise today's results as follows:

"MTI Wireless Edge (MTI), the technology group focused on comprehensive communication and radio frequency solutions across multiple sectors, has announced H1 results for FY24F.

The group delivered an 18% increase in adj. EBITDA to US$3.3m (vs US$2.8m in H1 FY23A) on flat revenues of $22.3m. Adj. PBT was up 9.8% at $2.3m ($2.1m) and adj. EPS increased by 8% to 2.14c (1.99c). Net cash at end-June 2024 was $5.5m vs $8.3m at the end of March 2024, reflecting the $2.7m payment of the 2023 dividend and the share buyback of $0.6m in the period. We view the expansion of, the buyback programme to £1.0m vs £0.7m from this week as a sign of management’s confidence.

Most importantly, in our view, new business wins are expected to drive revenue growth in the remainder of FY24F and future years giving us confidence that our forecasts will be achieved."

"Outlook and valuation: We make no changes to any of our group forecasts on the back of the H1 results. We are encouraged by the improved EBIT margin for Mottech in H1 and the confidence that Antennas and Summit continue to be well-placed to deliver improved profitability as FY24F progresses.

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 defence-related 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)."

[rivaldo] 21/8/2024 08:06

Agreed - good H1 results which make MWE look extremely good value at these levels.

Most importantly the outlook for the year is extremely optimistic. With 2.14c EPS achieved in the usually seasonally weaker H1, MWE are on course to certainly meet and potentially beat the forecast of 4.5c EPS this year:

"Outlook

Demand for our products is high and enquiry levels for potential future projects is at an all time high, largely relating to the global defence sector. Trading in Q3 has been positive so far and we are hopeful of securing some material contracts in the second half of the year. Overall, the business is well placed with good visibility on potential future contracts which will support the prospects for the business into 2025 and beyond."

With the three core drivers for the company being defence spending, water efficiency/scarcity and 5G, prospects will remain bright for many years to come.

And MWE are well funded for such growth - they currently have $5.5m of net cash which is forecast to rise to $9.3m at the year end - over 20% of the m/cap by itself.

It's also good to see the share buyback programme being expanded to £1m as an additional sign of confidence going forward.

[igoe104] 21/8/2024 06:08

Decent results, especially considering what's going on in the middle East.

Financial highlights

·    Revenues level at US$22.3m (H1 2023: US$22.3m)

·    18% increase in EBITDA* to US$3.3m (H1 2023: US$2.8m)

·    Profit before tax increased 10% to US$2.3m (H1 2023: US$2.1m)

·    Earnings per share increased 8% to 2.14 US cents (H1 2023: 1.99 US cents)

·    Strong financial position maintained with net cash standing at US$5.5m on 30 June 2024 (31 December 2023: $8.1m) after payment of dividend (US$2.7m) and purchase of shares (US$0.6m) via the buyback facility during H1 2024

·    Expansion of buyback programme effective from 22 August 2024 with increased funding from £0.7m to a maximum of £1.0m

[alex_mc] 20/8/2024 19:29

Any word on when the interims are due? Believe we’ve usually heard by now …

[alan@bj] 18/7/2024 15:52

It would be doing a lot better if Israel withdrew from Gaza and the risk of a wider Israel/Hezbollah conflict receded.

[049balt] 18/7/2024 10:54

Have to wonder why the persistent selling. MWE trading well below any reasonable value. An MBO is possible or a bid . Value will be recognised one way or another.

[rivaldo] 25/6/2024 09:23

New contract wins just announced - $650,000 of 5G antennas for India:



The important thing is not the quantum of the wins, but the signal that the huge Inidan market is now gearing up:

"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 it has received two orders, totaling $650,000, from Indian clients for its 5G antenna solution. The orders are expected to be fulfilled in the current financial year.

Commenting on the contract wins, Moni Borovitz, CEO, said: "These orders, which are in line with our expectations, show increasing activity in the Group's Indian market. I am pleased to see our Antenna division progressing in India, a large-scale area of opportunity for MTI."

[049balt] 21/6/2024 09:35

Wonder why the continued selling?

[rivaldo] 12/6/2024 11:10

Techinvest said Buy in the new issue this weekend, noting that MWE has net cash of 7.6p per share and concluding:

"Recent contract wins from MTI have been impressive and the shares continue to look good value on a prospective P/E for fiscal 2024 of 12.7 and price-to-sales ratio of just 1.1. Quality metrics are also attractive, with operating margins of 10.2% and return on capital of 14.7%. The cash-rich balance sheet adds further support. Continue to buy."

They also hold MWE in their Portfolio, and noted here:

"Solid first quarter results from MTI Wireless Edge helped lift the shares. Cash generation was particularly strong, contributing to an increasingly healthy cash balance for the business. The share price has increased by 24.6% this year, but we feel that the upward re-rating has further to run given the quality of the underlying assets."

[rivaldo] 21/5/2024 10:40

Allenby Capital have retained their 75p price target.

They conclude:

"Allenby Capital comment:

Solid start to FY24 with good growth in profits and cash. MTI continues to benefit from its exposure to multiple sectors with communications and radio frequency technology at the core. MTI has a strong trading history with uninterrupted EPS growth over the past five years and good cash conversion that has been used to pay a progressive dividend, make selective acquisitions, and invest to bring innovative products to market. The ongoing conflict continues to have a relatively limited impact on the business, although PSK was impacted by some staff shortages but,
overall, the team has been able to address any challenges.

The medium term global growth drivers for each division remain intact (roll out of 5G networks, increased defence spending and measures to address water scarcity) and the company enters Q2 with a lengthy pipeline of new business opportunities and a healthy backlog of orders and we anticipate an acceleration at the top and bottom lines, as evidenced by the recent contract wins totalling c. $3m. Shares have performed reasonably (YTD: +33%) but fail to reflect the company's current position and potential. Forecasts and 75p/share fair value unchanged, equivalent to an FY24 EV/EBITDA of 12.1x falling to 11.5x in FY25."

[rivaldo] 20/5/2024 08:55

Shore Capital retain their 80p valuation, as well as their forecast of 4.5c EPS this year and a $9.3m cash pile.

They conclude:

"Outlook and valuation

We make no changes to any of our forecasts on the back of the Q1 results. We are encouraged by the improved EBIT margin for Mottech in Q1 and the confidence that Antennas and Summit are both well-placed to deliver improved profitability as FY24F progresses following the good recent contract wins. 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 defence-related products and services of Summit/PSK. Finally, the Antenna division is likely to benefit from 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)."

[rivaldo] 20/5/2024 06:30

Good Q1 results today, with a 5% increase in EPS to 1.06c, a 20% rise in EBITDA and the cash pile rising strongly to $8.34m, or almost 8p per share.

Most importantly the outlook is very confident given the recent contract wins and performance to date plus the pipeline.

MWE may well beat 4.5c EPS expectations this year imo given the above and Q1 usually being a quieter quarter. Even on the current forecast, MWE are almost on a single-digit ex-cash P/E.

In particular, antenna revenues were up 13%, and it's great to hear:

" 5G remains a key market with the automatic beam steering ("ABS") antenna solution now moving into trial stages with two Tier 1 mobile phone operators.

· Sales of the division's 5G backhaul solutions are coming through from multiple markets, with India still expected to be the largest opportunity in the nearer term."

Mottech (water) profitabilty "increased strongly" despite lower revenues, which is a very good sign, whilst Summit revenues rose 10%.

Very happy with that overall.

[rivaldo] 08/5/2024 08:09

Allenby Capital have retained their 75p target price and summarise:

"MTI Wireless Edge Ltd* (MWE.L, 42p/£37.1m)

Contract wins across PSK and Antennas (07.05.24)

• Three orders totalling c. $3m, with the bulk to be delivered in FY24.
• Two contracts received by PSK, part of the MTI Summit division, from two Israeli customers for the provision of services and the installation of systems for the Israeli government, PSK's largest client and a long-standing customer. The other received by the Group's Antenna division is for military antennas from an Israeli system house and represents a repeat order.
• Forecasts and 75p/share fair value unchanged.

Allenby Capital comment:

The contract wins demonstrate the benefits of MTI's long-standing relationships with its customers and the quality of its product set, based on its comprehensive communication and radio frequency technology stack. Defence spending continues to increase worldwide and also in MTI's domestic market and the wins help to underpin our FY24 forecasts."

[rivaldo] 07/5/2024 08:46

Shore Capital have retained their 80p target following the contract wins.

They forecast 4.5c EPS this year, along with a $9.3m cash pile, or 8.5p per share.

That puts MWE on a current year cash-adjusted P/E of only 10 at 44.5p - and also paying a 6% dividend at 3.3c.

They conclude:

"As mentioned above each of the divisions has growth drivers with, in our view, Mottech well placed to potentially see much stronger demand than we forecast for its water management and control software. Typically, this improves the efficiency of irrigation systems, while reducing the cost of operating them. 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 and as illustrated by today’s further contract win is well-placed in defence as well as for the rollout of 5G in India, in particular. Similarly, we would also expect to see good demand for the defencerelated products and services of Summit/PSK, as shown by today’s contract wins.

We have an 80p per share fair value on the basis of a DCF analysis, which is more than corroborated were MTI to achieve an FY24F EV/EBITDA multiple of 12.8x (the average of our peer group). The next news is likely to be the reporting of Q1 FY24F results later this month."

[rivaldo] 07/5/2024 06:32

Yep, $3m of which almost all will benefit the current financial year, which is looking stronger and stronger following further contract wins and the excellent outlook in the prelims.

And likely more to come:

"as defence spending continues to increase worldwide, we expect to see further contracts materialize"

[igoe104] 07/5/2024 06:21

Nice contract wins.

[049balt] 23/4/2024 16:20

This company is so undervalued that I think it will be taken private. Their time as quoted company has been a disappointing one but the market is not interested in an Israeli company with such a diverse portfolio.

[2magpies] 06/4/2024 08:17

On the other hand, rivaldo, if they didn't buy their own shares, where would the share price be now?

'Cos no one else seems to be buying! (been like that for a very long time)

I think it would be languishing in the .20's (at which point a bid would land, possibly?)