SCT - Scott Tech

[Walter]

Poultry tech awarded | Otago Daily Times Online News (odt.co.nz)

[winner69]

Seems to be a pretty solid result Snoopy

Might see renewed interest in Scott now

[Snoopy]

Seems to be a pretty solid result Snoopy

Might see renewed interest in Scott now

Wow, Scott up 8.3% on that interim result to 3 bucks as I write this: Top of the NZX leaderboard!

Interim net profit up 66% from $4.7m (5.9cps) to $7.8m (9.8cps), a rise of 66%. Interim dividend unchanged though at 4cps, with no imputation credits. Perhaps a bit disappointing there is no dividend rise, as company debt is low.

FY2022 operational profit was $12.7m, implying a 2HY2022 result of $8m. So rolling twelve month result now $15.8m, or 19.8cps. That means at $3, based on 79.852m shares on issue, SCT is trading an an historical PER of 15. Doesn't seem too demanding for a company with such a solid portfolio of high tech products to sell.

"Forward work remains strong particularly around the meat and materials handling (Europe) sectors."

But look at the chart headed 'Regional Business Update', and NZ has one of the lower margins at just 2.9%. Then we are told that Rocklabs based in Auckland, traditionally one the the most profitable Scott operations, maintained their margins in dollars, despite reduced sales. The lamb and beef boning room projects are run from Dunedin. So I am surprised to see the overall NZ margins so low. No imputation credits might imply that once the corporate overhead is added in, NZ overall is loss making?

Also no follow up mention of the highly touted Caterpillar robotic fuelling deal. I hope our little caterpillar hasn't crawled away shrivelled up in heat affected outback Australia and died under a scorched Leaf?

SNOOPY

[Muse]

A good result I thought.

Snoopy have you seen today's Forbar research on Scott Technology?

You can get it free - care of signing up to MST Access (likewise free). It's company commissioned so take w/ a grain of salt (but in reality one way or another all research is sponsored, directly or indirectly). MST also has Forbar's recent initiation of coverage report on Turner Automotive and subsequent trading updates, makes for interesting reading, as a total aside.

[Sideshow Bob]

Not the only robot in the meat plant....

https://www.abc.net.au/news/rural/20...e=abc_news_web

[GTM 3442]

You'd like to think that Scott might have a competitive advantage with a direct pipeline into JBS. Wouldn't you. . .

[Snoopy]

Not the only robot in the meat plant....

https://www.abc.net.au/news/rural/20...e=abc_news_web

"The automated system has been developed in Australia through the Australian Meat Processor Corporation's research partner Intelligent Robotics. It has taken three years of development and an investment of around $5 million to make the 12-month trial possible.'"

" "There are two parallel cuts that go across all of the rib cage, through each of the rib bones, and then there are two additional cuts that get made in the spine of the side," Mr Taylor (Australian Meat Processor Corporation chief executive ) said."
"He said workers in the production line could then more easily break down the carcase."

I don't think Scotts will be unhappy to see this in the sense that it legitimises their market. The beef carcase market is much larger than the lamb carcase market. So it is probably unreasonable to expect that Scott would have a perpetual monopoly in this business space. Having said that, the Kilcoy robot is but a single processing point in a manufacturing chain. At Scotts the dream is going the while hog to fully robotised carcase processing. Scott's have spent a lot more money and time than the Aussies and I believe Scotts are further down the commercialisation track. So let's just see what happens.

SNOOPY

[nztx]

"The automated system has been developed in Australia through the Australian Meat Processor Corporation's research partner Intelligent Robotics. It has taken three years of development and an investment of around $5 million to make the 12-month trial possible.'"

" "There are two parallel cuts that go across all of the rib cage, through each of the rib bones, and then there are two additional cuts that get made in the spine of the side," Mr Taylor (Australian Meat Processor Corporation chief executive ) said."
"He said workers in the production line could then more easily break down the carcase."

I don't think Scotts will be unhappy to see this in the sense that it legitimises their market. The beef carcase market is much larger than the lamb carcase market. So it is probably unreasonable to expect that Scott would have a perpetual monopoly in this business space. Having said that, the Kilcoy robot is but a single processing point in a manufacturing chain. At Scotts the dream is going the while hog to fully robotised carcase processing. Scott's have spent a lot more money and time than the Aussies and I believe Scotts are further down the commercialisation track. So let's just see what happens.

SNOOPY

A wider slice on the Imputation cut out of the action would be good
to keep other delving fingers at bay

[Snoopy]

A wider slice on the Imputation cut out of the action would be good
to keep other delving fingers at bay

I think Scott's meat processing are more in the 'amputation' business rather than the "imputation" business ;-P

SNOOPY

[nztx]

I think Scott's meat processing are more in the 'amputation' business rather than the "imputation" business ;-P

SNOOPY

I suspect you're right .. wonder if an audit of the Taxman would help ? .. a bit of reverse robotics ?