Xp Power Share Discussion Threads

[cockerhoop] 08/3/2016 10:53

Thanks for the links Tudes100, I always think Duncan comes across really well in interviews.
They always tend to be conservative early in the year with a good chance of upgrades as it progresses.

[tudes100] 07/3/2016 04:05

hxxp://www.xppower.com/Media/Video
hxxp://info.xppower.com/2016-interim-results

[nehpets81] 29/2/2016 14:36

Thanks for your views Thorpematt, I wasn't 100% sure about the terminology either - I lifted the wording from the results announcement below:

The geographical segmentation is as follows:
£ Millions 2015 2014
Revenue
Europe 45.1 42.2
North America 55.7 51.3
Asia 8.9 7.6
Total Revenue 109.7 101.1
Segment result
Europe 6.7 7.6
North America 14.6 13.6
Asia 1.4 1.7

The above suggests that "segment result" which I took to mean profit declined in both Europe and Asia but grew in North America which seemed to go against the revenue movements and further narrative around how the business was performing.

I too like the fact that the business is expanded through its own cash flows and modest gearing rather than take unnecessary risks with debt or by diluting its shareholders.

[nimrod22] 25/2/2016 18:54

Investors Chronicle rates XPP as a buy, with references to:
Growing market share
Niche growth product range
Diversified revenue stream
Attractive dividend yield

[thorpematt] 25/2/2016 11:36

Not 100% clear on your terminology/ question - what you mean by contribution?

N.America (Industrial) was really the only fly in ointment. I believe this is a cyclical investment issue for XPPs client base - it was mitigated nicely in N.A by gains in the other 2 sectors. This is well presented on page 6 of Edison's report.

Yes there is some dependency on N.A industrial but Healthcare overtook it last year and tech. will do the same if iti declines further. The rise in the tech sector (previously a concern itself) more than compensated for the fall.

Regarding the factory: I do not think China is likely to close. Diversification as well as lowering of cost is the rationale. Vietnam has plenty of expansion capacity and one of things I really like about XPP is that it tends to execute its business improvements from its own cash - dilution or debt is kept to a minimum. Moving forward we'll seee continued benefits from Vietnam I am sure. China wil perhaps enhance efficiency as a competitive consequence.

[nehpets81] 24/2/2016 18:35

A decent set of results here with the prospect of growth coming from the recent acquisition a potential driver of growth imv. I find it quite curious that revenues increased in Asia and Europe but fell in North America whereas contribution fell in Asia and Europe but increased in North America - any ideas about that?

Also, does anyone know if the intention is to shut the Chinese factory eventually and just run the one in Vietnam plus the newly acquired facility in the US for more complex stuff?

I have been looking for an excuse to buy into this highly cash generative, well run company for a while and think now might be the time. It's all a bit dependent on US industrial production though I think?

[tudes100] 23/2/2016 04:05

www.edisoninvestmentresearch.com/research/report/xp-power45/preview/

[thorpematt] 22/2/2016 22:10

I thought there were some interesting trends developing in the marketplace numbers. Overall there has been some un-certainty with that element the last couple of years and what came across to me is more the fact that the cyclicals are becoming less significant because of diversification.

As with many tech related stocks things move around a bit and the future can lack certainty but XP continues to position itself well with clear strategies which make good business sense and as we know the market is fragmented globally which should offer opportunities for further growth.

I am quite pleased to see healhtcare showing positive trends since I believe this market-place is likely to be the more regulated and thus favours the larger players over the low-cost competition that is referrenced as being a risk to XPP's business model.

Overall I think the valuation is a little low BUT divi cover isn't huge as one example of why the PERs might not be given high ratings that one might expect with such a high quality company.

[nimrod22] 22/2/2016 09:52

Excellent results, though share price continues to lag imho to where it should be.

[cockerhoop] 22/2/2016 07:47

Yes, expectations were shaded down from 105p to 99p after 9th October update so to almost hit original expectations shows how the US rebounded in the 4th qtr.

Margins still improving, great quality metrics, chunky dividend, steady progress being made.

[tudes100] 22/2/2016 07:33

Excellent results - beating consensus forecasts on PBT, EPS and divi. Some caution expressed in outlook but encouraging nevertheless.
Should have a good day today as long as Mr Market behaves....

[rocheberie] 11/2/2016 16:47

Broker Forecast - Investec issues a broker note on XP Power Ltd
2016-02-11 13:10:02
XP Power Ltd

Investec today reaffirms its buy investment rating on XP Power Ltd (LON:XPP) and cut its price target to 1980p (from 2030p).

Story provided by StockMarketWire.com

[jim208] 21/1/2016 14:46

I would believe that the share price is currently understated. After the October Trading Statement suggesting a US slowdown, the share price dropped sharply and immediately and has since traded lower and in a tight trading band. The Trading Statement at the beginning of January pointed towards improved US results and suggested the prior quarter data was a blip. Certainly the next Trading update will be watched closely, but I think there is a good 10% of upside to XPP if US trading continues strongly.

[tudes100] 15/1/2016 01:15

Very strong in last few days vs market, volumes higher than any day since September. One to watch imo.

[woodcutter] 08/1/2016 11:03

Added to my holding this morning. Steady growth and share price looks strongly supported on the chart, may see a possible breakout and great divi too.

woody

[cockerhoop] 08/1/2016 08:41

Encouraging 4Q update today after slightly subdued 3Q update. Excellent order intake. Pretty cheap for the quality of earnings.

Edison note

[fozzie] 08/1/2016 07:40

Yet another good update, shame i wasnt brave enough to pick any more up in yesterdays carnage. In a decent market these should spring back up today but we will see, i may get a chance to add a few.

[woodcutter] 24/12/2015 15:46

We are now in a consolidation phase and the longer this last the more likely the breakout will be powerful whichever way it goes. Nice to see one of my mentors picking up more stock recently. I'm tempted to add myself but i've quite a holding at present.



woody

[thorpematt] 17/12/2015 11:42

Good addition to the BoD today...

complex power supplies in everything nowaadays


.. she should know all about kettles yeah?


----

Seriously though, good buy in point this I reckon.

[johnroger] 25/11/2015 16:19

Duncan Penny, Chief Executive of XP Power, said:

"We are delighted to welcome EMCO to the XP Power Group and are excited about
the opportunity of offering their products through our sales channel. The
Acquisition will enable us to provide our existing customers with a
comprehensive product offering in high voltage technologies, a market segment
with robust demand fundamentals but one in which we did not previously
specialise. We are confident that EMCO will have a very successful future as
part of XP Power."