HCL HighCom Limited (Prev XTEK Ltd (XTE)

**silu** · 06-11-2023, 11:50 AM

Originally Posted by Rawz

Cracked 50cents as well. Good trend starting to form

Was a little bit miffed having sold SKT.NZ shares just before they got their unsolicited takeover offer but then realized I bought more XTE at 32c with that money. I think we will go through a period of consolidation before hopefully more contracts are announced and a SP closer to 80c.

**Rawz** · 06-11-2023, 01:55 PM

Originally Posted by silu

Was a little bit miffed having sold SKT.NZ shares just before they got their unsolicited takeover offer but then realized I bought more XTE at 32c with that money. I think we will go through a period of consolidation before hopefully more contracts are announced and a SP closer to 80c.

there is a lot to like. Company commentary is profit growth and with it trading on a low P/E multiple of 8 odd we are looking good for EPS increasing and multiple expansion. I.e. this can trade double digit P/E easy.

A nice hold for the next couple of years i reckon with all the geo-political stuff going on and XTEK moving its operations over to the states. Should see continued growth or takeover is my guess.

**NZSilver** · 07-11-2023, 02:00 PM

Contract wins will drive SP on the short term, EPS in the medium to long term. Sign some more contracts.

**Rawz** · 08-11-2023, 09:34 AM

Originally Posted by NZSilver

Contract wins will drive SP on the short term, EPS in the medium to long term. Sign some more contracts.

They have their $300 million pipeline which the market is giving more and more credit to as each contract announcement is made.

**NZSilver** · 08-11-2023, 07:14 PM

Pipelines or Potential contracts I take those figures with a grain of salt. Signed orders is what I want to see.

**Rawz** · 09-11-2023, 08:04 AM

Over $1billion US$ in armored vests are sold each year Silver. I dont think the market has quite caught onto the potential XTEK has. The move to the US shows the confidence they have in taking more of the pie.

No debt, cash on the balance sheet. Trading below 10 p/e. Huge GEO political issues in the world. Armies restocking.

Its a nice hold for the next 18-24 months imo. Happy to see where it goes and hope it doesnt get taken over before true value is reflected in the SP

**percy** · 09-11-2023, 08:45 AM

A research paper out has the following.
............................2023.................. ...2024.....................2025.
Revenue................$89.5mil..................$ 94.6mil..............$101.5mil
NPAT......................$6.1mil................. ..$.8.9mil................$9.8mil
EPS.........................6cents................ ......8.7cents.............9.6cents
eps growth................................45%......... .............10.3%

**Rawz** · 09-11-2023, 09:56 AM

thanks Percy

If they continue to sign more contracts as Silver wants from their $300m pipeline (or is it $350m now??) the uptrend will be set.
Then if they hit that FY25 eps broker target of 9.6eps you could easily see multiple growth from current 8pe to 16 pe which would put the SP at:

9.6eps*16pe= $1.53 share price. or roughly 3x todays price.

A few months ago i read on HC some poster talking about XTEK peers in the industry all trading on high teens+ p/e multiples...