Strix Share Discussion Threads

[melody9999] 05/7/2023 15:52

So if KETL re-iterate guidance, but Shore reduce their TP, that means their TP was wrong before the AGM update.

Depends how much creedence you want to give to the Shore report.

[masurenguy] 05/7/2023 15:18

Over 1m shares traded with Sells outnumbering Buys by circa 2 - 1. Shore Capital downgraded Strix this morning from ‘buy’ to ‘hold’ and reduced their target price from 115p to 100p despite the fact that Strix reiterated full-year guidance. "‘The shares trade on 8.6 times our downgraded full-year 2023 earnings-per-share forecast, falling to 7.9 times and 7.1 times for full-year 2024 and 2025. We believe a single-digit price/earnings ratio may be warranted, given the level of debt and limited scope for earnings-per-share growth beyond an initial recovery over the next couple of years." said Shore.

[niklol] 05/7/2023 14:37

Why the brig drop today???

[edmonda] 05/7/2023 11:44

Encouraging AGM update & Investor Day insights (new report from Equity Development)

The AGM update was encouraging and indicated that ‘green shoots’ continued to emerge, with momentum building during Q2 as the frequency of orders increased. Volumes, however, have yet to pick up, suggesting OEM customers are maintaining inventories and conserving cash. Significantly, the Group is seasonally H2 weighted with September to November critical months ahead of Christmas and Chinese New Year. Strix continues to trade in-line with market consensus (PAT of £25.8m) and as such, we see no reason to adjust estimates. The integration of the Q4 acquisition of Billi is on track, with a degree of excitement of the launch of the new one-tap system in Australia. We are particularly encouraged by the new product pipeline and the opportunity to gain a firmer foothold in North America.

We visited the facilities on the Isle of Man during an Investor Day ahead of the Group’s AGM. Meetings included an introduction to the Company, greater detail on the Chinese factory opened in Q3 2021, presentation of forthcoming product launches, and a factory & tool room tour (see main body of note for more details).

We think the shares have been largely overlooked, sitting on a single digit FY23 PER and at a marked discount to its peers. Our fair value / share of 216p, based on several valuation models, is more than double the current share price.

Full report here:

[wad collector] 04/7/2023 09:34

5.9% yield at this price; don't think it will be here for long.

[chrisdgb] 04/7/2023 08:07

Nice update.......

[darrin1471] 04/7/2023 07:06

AGM Statement:

"We are pleased to report an improved trading performance and can confirm that profit after tax for the full year remains in line with market expectations*.

"At our full year results, we highlighted that, following a period of uncertainty across a number of Strix's key export markets, sales data in 2023 indicated some green shoots were appearing. I can report that this trend has continued with Group performance in Q2 improving versus Q1. We are continuing to receive increased frequency of orders from customers, albeit with smaller quantities as they manage their cash balances prudently.

"We also continue to make successful progress on the integration of Billi which is in line and remains on track with our plan for the full year. This is another step that will propel Strix into a new growth phase, further diversifying away from the core Kettle Controls business.

"Alongside this, we are continuing to implement a range of strategic initiatives across the business which include a functional streamlining programme to minimise the impact of the ongoing headwinds Strix is facing.

"We will prioritise debt reduction with a clear plan to get net debt / EBITDA to below 2.0x during 2023 and to below 1.5x during 2024 . As capital allocation decisions prioritise this, the Board, as previously announced, has decided after reviewing the level of net debt to propose a final dividend of 3.25p per share which would represent a total dividend of 6.00p per share."

*Current profit after tax consensus for year ended 31 December 2023 is GBP25.8m

[chrisdgb] 12/6/2023 16:18

Looking perky............

[darrin1471] 30/5/2023 19:16

AGM in July (tbc)

Share price has drifted lower for the last month.
Octopus has reduced slightly.
Poor China data.

50/100/200ma all converging around 105p over the next couple of weeks

[chrisdgb] 18/5/2023 08:54

AGM soon...?? Hopefully another update on the recovery path.....

[wad collector] 16/5/2023 12:34

Or 40% down in the last 12 months...but is looking more promising.

[masurenguy] 11/5/2023 08:30

Looking good - up 32% so far this calender year.

[brucie5] 29/4/2023 11:05

Weighted 200 mas look even better. I often find this kind of recovery from the £1 level can be a kind of corridor from £1-£2. LUCE another to watch, though it got rather ahead of itself in the early stage. GATC another.

[pottsypotts] 29/4/2023 08:42

Starting to gain some momentum ?

[rcturner2] 28/4/2023 16:25

Strix is about to break through the 200 day average, which is a very bullish indicator.

[chrisdgb] 28/4/2023 15:55

china realisation finally landed here..........

[rcturner2] 27/4/2023 06:32

From the final results:

Outlook

Following a period of uncertainty across a number of Strix's key export markets in Q4, recent sales data in 2023 indicates that some green shoots are appearing and the path to a return of growth is opening across all segments:-


-- It is anticipated that the Chinese economy will rebound
in 2023, given the change in COVID policy;
-- Estimated Kettle Sales through a major online retailer
channel shows January 2023 grew by 17% versus the same
period last year;
-- After usage at Strix's top five OEMs in H2 2022, the Group
is now seeing a recovery in Q1 2023 which is reassuring
as this has historically been a quieter trading period;
-- Signs of a pipeline refill are returning, as a small increase
in consumer demand can have an outsized effect on the demand
for Strix's components; and
-- The Group has delivered consumer goods business growth,
despite the underlying market softening and positive contracts
secured in Q1 2023.

Strix continues to implement a range of strategic initiatives to minimise the impact of the headwinds it is facing, which includes a functional streamlining programme and a focus on the reduction of inventory in order to maximise cash generation for the Group.

The successful integration of Billi will propel Strix into a new growth phase, further diversifying away from the core Kettle Controls business with strong potential for greater top line growth and improved margins going forward.

[pottsypotts] 25/4/2023 18:28

Are we finally going to break through the 105p barrier? fingers crossed

[chrisdgb] 24/4/2023 09:57

Surely on private equity's shopping list......bid a day at the moment...

[darrin1471] 19/4/2023 12:34

China's Q1 GDP +4.5% headline growth was in part due to a +10.6% in retail sales.
March industrial output was +3.9% vs forecast of +4.0%. Jan-Feb +2.4%.

[darrin1471] 17/4/2023 21:36

They only completed the purchase of Billi at the end of November. Give them a chance.

[bend1pa] 17/4/2023 15:07

Looks like 100p is going to be around the upper limit until Strix show genuine signs of lowering their debt. It's all very well talking the talk, but some months ago they reported that debt reduction was going to be one of their top priorities, but so far no sign of that happening.

[melody9999] 12/4/2023 22:24

that's fine Chopp. Hope you find a more profitable investment elsewhere. I'm happy to hold on here.