RAK Rakon

[nztx]

At least they have 11m of imputation credits

that's for sure .. must have been making some 'real' taxable surpluses along the way

[Shareguy]

Given the size of the recent upgrade I would’ve thought there was a high probability for the first dividend. Not expecting a lot though for the maiden. The start of hopefully a constant stream of increased profits. $2 not far away, then who no’s. Will be a lot of interest in the result and I would expect market coverage to start soon after which will be a game changer. Exciting times ahead.

[sb9]

They’ve surely committed to some divvy payout as per ASM discussions. Hopefully sp would’ve crossed $2 mark by then.

[Scrunch]

Don’t think dividend is a word Rakon knows

Anyway why would they want to pay a divie?

They know the word and since Nov 2019 they have been dangling the dividend carrot.
Nov2019: "The Directors have declared that no dividend is to be paid for the interim period to 30 September 2019. Rakon maintains a dividend policy such that it will pay a dividend of up to 50% of the after tax profit, if considered fiscally appropriate. The payment of dividends is subject to the approval of Rakon's bank, ASB Bank, under its facility arrangement."

Jun2020: "The Board of Directors has declared that no dividend is to be paid for 2020. Rakon maintains a dividend policy such that it will pay a dividend of up to 50% of the after tax profit, if considered fiscally appropriate. The payment of dividends is subject to the approval of Rakon's bank, ASB Bank, under its facility arrangement."

Nov2020: "The Directors have declared that no dividend is to be paid for the interim period to 30 September 2020. Rakon maintains a dividend policy such that it will pay a dividend of up to 50% of the after tax profit, if considered fiscally appropriate. The payment of dividends is subject to the approval of Rakon's bank, ASB Bank, under its facility arrangement."

May2021: "Mr Robinson said the company would continue to maintain a conservative balance sheet as it manages ongoing uncertainties and risks, and looks to consolidate its improved performance and reserves in FY2022. Accordingly, Directors have determined not to declare a dividend for the period to 31 March 2021."

[Wai Wai]

The board of Rakon has headed off shareholder disquiet at its annual general meeting in Auckland today by promising them a dividend at the end of the 2022 financial year (March 2022), if forecast results are met and no significant unexpected costs arise. NBR 12/8/2021

[carrom74]

Dropping from highs of $1.68 to $1.47 now...

May be a good buying opportunity before the results on Nov 25.

Chip shortage is still around....

Good turnaround story so far

[Muse]

Dropping from highs of $1.68 to $1.47 now...

May be a good buying opportunity before the results on Nov 25.

Chip shortage is still around....

Good turnaround story so far

Aye its the normal price cycle for this coy: slight increase before announcement, large increase post announcement, long steady downward drift after the SP pop, and repeat.

[Sideshow Bob]

Rakon upgrades earnings guidance - NZX, New Zealand’s Exchange

12 November 2021
Rakon upgrades earnings guidance

Rakon (NZX: RAK), a world leader in the provision of advanced frequency control and timing solutions, today announces a further upgrade to its earnings guidance for the year ending 31 March 2022 (FY2022).

Rakon now expects to achieve Underlying EBITDA of $44 million to $49 million in FY2022. This is an upgrade to the earlier guidance of $39 million to $44 million provided on 29 September 2021.

Managing Director Brent Robinson said the increase in Rakon’s FY2022 expected revenue and earnings reflects the certainty of two additional months of good performance, a strong order book for the remainder of FY2022 and some narrowing of the supply chain risk window affecting the availability of materials and parts.
Mr Robinson said Rakon was able to work through the considerable uncertainties regarding manufacturing capacity, procurement of raw materials and parts, adapting design specifications and other resource requirements it faced in the first half and has delivered greater than expected volumes of higher margin product in September and October.

For the remaining period, we have an increased level of orders from Tier One telecommunications customers for Rakon products for 5G network equipment and continued delivery against the significant long term orders previously secured due to the world-wide chip shortage. However, the prevailing supply volatility and cost pressures facing the global electronics industry mean there is still significant risk in securing raw materials and parts to meet orders. These challenges are requiring management on a month-to-month basis.

The business is expected to perform well through FY2022 provided Rakon is able to manage the supply chain risks and maintain capacity and avoid COVID-19 related disruptions at its manufacturing sites.

Rakon will provide its financial results for the half year ended 30 September 2021 on Thursday 25 November 2021.

[Shareguy]

A couple of months go by and another upgrade. I’m thinking the divi is in the bag. $2.00 here we come

[Muse]

Haha wicked. Just ran some numbers, using guidance midpoint and high end, last close price of 1.48, and last reported net debt of 5 million net cash (15m cash, 10m debt). Used historical figures and extrapolated up for depreciation, amortisation, interest and tax to calculate PE and EV/EBIT.

EV/EBITDA; 7.3x midpoint / 6.9x high
EV/EBIT: 9.7x mid / 9.0x high
PE: 12x mid / 11.2x high

These are reasonable figures. Issue is no one has a good feel for what maintainable earnings are after this boom and shortage of oscillators. Core 5g and maintainable demand for its TXCO products will be interesting, but these low multiples suggest that priced in. We will get a divvy and some decent upside from here, in my opinion, certainly not advice. Happy holder.