Titon Share Discussion Threads

[saltaire111] 19/3/2019 16:01

Looking at the statement issued just this afternoon, the FD should be fired.

[bo90] 19/2/2019 18:06

i've topped up today based on a over reaction rather than the report. the spread is wide which is off putting but i see a good rebound coming on

[wad collector] 19/2/2019 17:12

Thanks for that , the share price seems to like it , closed around 145p.

[spob] 19/2/2019 12:56

Analyst Tony Williams at equity research firm Hardman & Co estimates that Titon’s underlying operating profit will decline by a third to £1.4m in 2019. However, the hit to post tax profit is far less severe. Let me explain.

That’s because Titon’s share of operating profit from 49 per cent South Korean associate company BrownTech Sales, a distributor of ventilation products and a residential property developer in Seoul, should hold steady at around £800,000. Titon will also pay less corporation tax (£43,000 less than in 2018) and minority share of net profit attributable to Titon Korea’s other shareholders will decline by £385,000. On this basis, Mr Williams estimates that net income attributable to Titon’s own shareholders is expected to be £1.78m, albeit that is 16 per cent lower than in 2018.

Based on 11.1m shares in issue, Titon should still make EPS of 16p (19.2p in 2018) which covers the annual dividend of 4.75p a share more than 3.3 times. I would also flag up that Titon has a rock solid balance sheet and a strong net funds position of £3.4m, a sum worth 31p a share. This means that the shares are priced on a cash-adjusted forward PE ratio of 6, and offer a dividend yield 3.6 per cent. They also trade 21 per cent below book value.

[sonofbanjosinger] 15/2/2019 10:22

I have held Titon on many occasions but even this entry point does not seem attractive at the moment as we don't how much the impact on profits will be, how easy it is going to be to get into the mechnical ventilation sector and how much the R&D costs will be.

[wad collector] 15/2/2019 10:12

It was hinted at in the Dec statement , and if you read the two documents , they are not that different, but it depends how much you view them as a code.

Dec;
We anticipate that increasing levels of air pollution may raise demand for mechanical ventilation units over natural ventilation products in fiscal 2019, resulting in a slowdown in our core natural ventilation business. We are, however, in the process of developing new solutions for the South Korean ventilation market. Most importantly, the trajectory of the South Korean economy remains enviably positive with FocusEconomics forecasting GDP growth of 2.6% in both 2019 and 2020 as Government spending increases and monetary policy remains accommodative. We are therefore positive on the medium-term outlook for our South Korean business.
Feb;
We are obviously disappointed to announce that the expected results from our Korean business for the year ended 30 September 2019 will be substantially lower than we anticipated in our preliminary results announcement in December 2018. However, we have already commenced the design of new products and both in the UK and South Korea we will be committing substantial research and development resources to these new products, which we expect to introduce to the market in late 2019. We remain optimistic that the South Korean business will return to growth in the future and re-iterate our confidence in the medium-term outlook in South Korea."


I decided to add at 130 this morning. A buying opportunity? maybe.

[nocton] 15/2/2019 09:05

Very disappointing as only bought last week on basis of John Lee's recommendation. So sold, as previous experience of profit earnings like this is that it can only get worse/take a long while to recover especially as management failed to see it coming.

[podgyted] 14/2/2019 21:56

ST is awaited !?!

[retsius] 14/2/2019 10:08

Valentine Day Massacre!
R.

[impvesta] 14/2/2019 09:52

Disappointing and I've bailed out this morning. Initially bought at 99p and sold 25% when it doubled so made a decent profit but not as good as if I'd sold yesterday!

hiraniha - the split of sales and profits for the y/e 30/9/2018 is shown in note 3 at the following link:



South Korean business was 38% of sales but 70% of profit.

[sonofbanjosinger] 14/2/2019 09:48

This from half yearly figures...South Korea, the World's 12th largest economy(2) and the Group's largest net profit contributor, Q3 of calendar 2018 saw slightly slower GDP growth in relative terms at 2.0% compared with 2.8% in Q2 due largely to weaker construction and business investment. We anticipate that increasing levels of air pollution may raise demand for mechanical ventilation units over natural ventilation products in fiscal 2019, resulting in a slowdown in our core natural ventilation business. We are, however, in the process of developing new solutions for the South Korean ventilation market. 

[its the oxman] 14/2/2019 09:32

Unfortunately it could take a while to reposition and recapture lost market share. Real shame.

[hiraniha] 14/2/2019 08:19

Lord Lee also bought into this one recently so am wondering what he'll be doing.Anyone have an idea what percentage the Korean business is in terms of sales?

[fozzie] 14/2/2019 08:03

I am absolutely gutted at this. Very disappointed that management haven't been able to respond more quickly to changes in the marketplace. As usual the MM's mark it down big time on opening. It's going to be a long way back.

[muffster] 14/2/2019 08:01

Poor statement. I agree, lack of information causes more uncertainty.

[esmith3] 14/2/2019 07:58

It would help if the management here learnt that a trading update isn't much use unless it contains some numerical guidance on outcomes.

I wonder what song that muppet at Hardman will choose for his next broker report...

[2breakout] 14/2/2019 07:51

well done Simon Thompson yet again

[fozzie] 04/1/2019 16:51

Sod the dry January, the wine is out tonight, great stuff from TON.

[wad collector] 14/12/2018 14:31

EPS turned out to be even better than the 18p forecasts. The current PE of 9.5 makes me wonder whether time to add .

[jane deer] 13/12/2018 13:04

Yes solid numbers much as indicated in the AIM conversion document. I am not sure that there is much new here to drive the price forward - would like more disclosure on Korean business. Stock price seems solidly underpinned by cash generation and no doubt this has meant that the share price has been resistant during the latest sell off.

[jane deer] 13/12/2018 13:04

Yes solid numbers much as indicated in the AIM conversion document. I am not sure that there is much new here to drive the price forward - would like more disclosure on Korean business. Stock price seems solidly underpinned by cash generation and no doubt this has meant that the share price has been resistant during the latest sell off.

[boystown] 13/12/2018 08:28

Very undervalued. They must wonder what they have to do to get the share price moving, but it's just a reflection of overall nervousness obviously.

[impvesta] 13/12/2018 07:49

Look to be good solid results to me. Not sure whether anything will motor much in these current turbulent times though but it will all blow over at some point in time.

[pugugly] 13/12/2018 07:44

Nice one-


Up on all metrics - Should motor today - imo