Rectifier Technologies Limited ("RFT")

[steve fleming]

http://www.rtp.com.au/

Copy of my post on h/c...just putting it out there as there is no thread for RFT on ST

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Pudu/ Wangs got involved in RFT to utilise their chinese connections to drive sales from China as a medium term strategy. China is what they saw that could drive some decent growth in the business. Nothing much happened for a couple of years. But a couple of key announcements at the back end of 2013 and a return to NPAT profitability suggests this strategy maybe now working.

IMO (apart from QTG) at just over $4m it's the cheapest (by m/c) exposure to a genuine, growing NPAT positive business on the ASX

Still a long way to go to become 'investment grade' from a fundies perspective. Low quality board, poor governance and a pretty opaque register. Though I guess having a substantial chinese listed company as a major shareholder now helps a bit. Given the low 'quality' qualitative aspects, the numbers are going to have to be the driver of the share price, unless chinese money starts to get interested.

I have asked Management to get their Form 603s and 604s lodged for all the change in shareholding activity of late last year, before ASX gets on their case.

Hold a few mil of these, so see how we go as a hopefully lower risk profitable spec play

[Well Endowed]

Hi Steve, looks interesting. Do they hold patents/competitive advantages for their AC/DC converters/peripherials, or is it more of a niche manufacturing play?

I had a read through the last handful of announcements, looks like plenty of registry movement between chinese counterparts. The cost savings largely driven by the movement of manufacturing location to malaysia and redundancies/resignations, further profitability likely to be generated by contract wins?

The company structure and business has similarities with MLA I reckon. Will have to do some further reading.

Cheers,

[stoploss]

HI steve ,
I am happy for a punt joined you on the register , in @ .004

Cheers.

[percy]

HI steve ,
I am happy for a punt joined you on the register , in @ .004

Cheers.

Me too,1mil at 4cents at open.Did not get the contract note until they were going through at 5 cents,so thought I may have missed.So we are up 25% in a day."That's incredible."
Thank you Steve.

[Well Endowed]

but a bit of a flurry of activity on open, still reading through reports! might've missed the boat hah

[stoploss]

Steve I hope they haven't sold the Golden goose ?

[stoploss]

"In the 6 months to 31 December 2013, RTUK contributed approximately 35% of RT’s revenue and was the largest contributor to RT's group profit"

Bit sucky. But at least you don't own PBT right?

correct not in that one thankfully. ( at least I only have half a cent to lose here !! )

[percy]

Well its either the right thing to do,or it is the wrong thing to do.
If you are prepared to sell your biggest earner you must be confident the proceeds of the sale can generate better returns.
The people with the most at risk have decided it is the right thing to do.Half a million pound should bolster the finances.[A$900,000]
We have paid our money to join the party,so lets see what happens.!

[steve fleming]

Well its either the right thing to do,or it is the wrong thing to do.
If you are prepared to sell your biggest earner you must be confident the proceeds of the sale can generate better returns.
The people with the most at risk have decided it is the right thing to do.Half a million pound should bolster the finances.[A$900,000]
We have paid our money to join the party,so lets see what happens.!

Yes RFT very much a China story

Their UK operations have plodded along OK historically selling their battery charger units to rail companies, but have always been a bit non-core. As per the announcements from late last year and per Management’s strategy, the focus is to drive sales from Americas/Asia and in particular China. Low cost manufacturing out of Malaysia is a key driver.

Hopefully these operations are now at a level that they can be self supporting, such that the time was right to drop the UK operations, otherwise indeed it would be silly to sell UK after all these years

Anyway good to have Management now focussed solely on the key growth driver - Asia.

[steve fleming]

RFT wins two Prestigious 2014 iAwards

http://stocknessmonster.com/news-ite...E=ASX&N=407256

Congratulations RFT, and congrats to the Vic Govt for all the support they have given RFT




"The most outstanding ICT R&D project in Victoria"

So, RFT have:

*an externally validated, award winning, innovative secure power solution
*highly environmentally friendly / energy efficient
*a growing market for their product to be distributed into (DCs)
* a financially strong and experienced distributor, who as the major shareholder is well incentivised to put lots of effort into the distribution
* a business model that is already profitable

The good thing is that all the R&D on RT15 now appears complete, so RT15 looks ready for Yimikang to take to market. Exciting times ahead