HCL HighCom Limited (Prev XTEK Ltd (XTE)

[Sideshow Bob]

Hammered down 12.5% this morning, so clearly the market was expecting more.....

However, with NPAT for 6 months at $6.2m, earnings approx 6cps for the 6 months. Keep that momentum, earnings 12cps for the FY, then PE becomes about 5.5.

[percy]

I thought it was a great result.
Current assets 5 times current liabilities.
Stock level up with out borrowing is a big positive.
Strong out look too.

[silu]

I'm confused about the price action. I can't explain the big drop at all.

[percy]

I'm confused about the price action. I can't explain the big drop at all.

Neither can I...

[caenix]

They are guiding $82m revenue for FY23, implying $33.5m for H2, which is lower than the $48.5m H1 revenue. I guess some people think the company just had their best period?
Though the guidance can quickly upgrade if they get a new contract. Just the nature of their contract based business and lumpy income.
Personally I think XTE is in the right business for the foreseeable future and Poland is the right place to expand. The contracts will come sooner or later.

Possibly trading sideways above 50c until further business development.
xte.jpg

[silu]

2 or 3 decades ago I worked for a company that provided services to armed forces. One thing I remember is that it took ages to finally get a purchase order approved. They will come as I can't see how countries like ours that have provided ballistic armour to the Ukraine cannot replace their diminished stock pile. It will take just time.

[Sideshow Bob]

Interesting how they can ramp up their business so quick. FY22 turnover was $28.3m and they did 50% more than that in the first half of 2023.

$82m forecasted revenue for the year, and still almost 3x FY22.

However they have diminished their cash pile from $36.2m down to $7m.........

[DarkHorse]

Interesting how they can ramp up their business so quick. FY22 turnover was $28.3m and they did 50% more than that in the first half of 2023.

$82m forecasted revenue for the year, and still almost 3x FY22.

However they have diminished their cash pile from $36.2m down to $7m.........

That was no surprise due to advance payment. Looking incredibly cheap again.

[Sideshow Bob]

That was no surprise due to advance payment. Looking incredibly cheap again.

Thanks DH.

Yes, looking to top up soon.....

[percy]

From Stockhead this morning;
“The Defence Strategic Review is the biggest Australia has seen since World War II and while it is still early days I think there certainly will be opportunities for Australian companies,” Wulff said.

“We’ve got a lot of innovative companies listed on the ASX working in the defence sector from Droneshield to XTEK positioned to work with the Federal Government and ADF to improve the country’s defence capabilities for the future.”


We are in the right company,in the right sector at the right time.
[3 rights, so looks alright.]