Telecoms

Telecoms equity research

Explore the most viewed and latest equity research and media content for companies within the Telecoms sector. Stocks in this sector provide telecoms services & equipment, and mobile services.

25 Nov 20

Cenkos: Calnex Solutions plc -- Interim results and forecast upgrade

Calnex Solutions has announced very strong maiden interim results, with H1/21 revenue up 37% to £7.7m and adjusted PBT up 90% to £2.3m. Calnex has firmly established a trusted reputation worldwide, launching multiple first to market telecoms and network testing solutions. The exponential growth of data creation and secular migration of industries to cloud computing along with the long-term transition of the telecoms industry to 5G is driving demand for high value test instrumentation. Given the strength of H1/21 reported today we have upgraded our revenue forecasts for FY21E and FY22E by 10.6% and 12.2% to £15.4m and £16.4m and increased forecast EPS up 24.1%. and 14.3% respectively. Calnex is accelerating its growth investment plans, ahead of our previous expectations, expanding both R&D and sales capacity to capture increased market share within a substantial and growing global market.

Companies: Calnex Solutions Plc

04 Nov 20

Cenkos: Calnex Solutions plc - Standing the test of time

Calnex Solutions is a leading provider of test and measurement hardware and software solutions that enable performance validation and standards conformance of critical infrastructure associated with telecoms and high-speed data networks. 5G network evolution is a significant, long-term driver of growth for the business along with the continued expansion of hyperscale datacentre enterprises and their increasing participation in telecoms infrastructure markets. Calnex has established a trusted reputation worldwide, launching multiple first to market testing solutions. We have initiated coverage with very conservative forecasts given the strong financial track record with historical revenue CAGR of over 27.7% between FY18 and FY20. Calnex is profitable, cash generative and entered FY21E with a record order backlog.

Companies: Calnex Solutions Plc

17 Nov 20

Resilient H1, well positioned for recovery

ADT has produced a resilient set of interims despite being impacted by the lockdown and is well positioned to benefit from recovery both from an operational and financial leverage point of view. Group revenues declined by 8% yoy in H1 with Managed Services seeing a 6% organic decline, mainly due to weaker project work (-17%) while recurring Managed Services revenues decline was held to 3%. Margins and cash flow remained robust with senior net debt reduced to £24.8m from £27.9m at end March and c. £10m headroom on the RCF. ADT trades on an historic FCF yield of >6%, but this should rise to >10% as recovery begins.

Companies: AdEPT Technology Group Plc

02 Jul 19

Huawei granted temporary reprieve, Self-driving cars have 2 big challenges, Applied Material bets on memory chips

Huawei was granted a temporary reprieve as part of a broader accord between the Trump administration and the Chinese central government at a much-anticipated meeting between the countries’ leaders. The autonomous vehicle industry has two big challenges it needs to overcome before self-driving cars become widespread - technology and business models that can make money, according to Michelle Avary, head of autonomous mobility at the World Economic Forum. US chip gear maker Applied Materials on Monday agreed to buy Japanese peer Kokusai Electric for $2.2 billion from KKR & Co Inc, as it bets on rising demand for memory chips used in data centres, 5G phones and AI-powered devices.

Companies: AMO IQE TRAK SEE CPX TCM TRCS QTX

02 Jul 19

Where’s the Value?

Warren Buffett once said that as an investor, it is wise to be ‘fearful when others are greedy and greedy when others are fearful’. Fear is not in short supply right now.

Companies: OPM ALU ANCR BLV CONN CRC STU GATC HAT LEK MMH MCB MWE NXR NTBR NOG PAF PEG RFX SRC TEF TEG TPT VTU WYN XLM

01 May 20

Vitec

Update to forecasts – Neutral

Companies: Vitec Group PLC

15 Sep 20

Maintel - Interims

Interims are in line with the guideline full-year performance we quantified at the time of the June prelims –£5m of EBITDA and £5.3m of free cash flow derived from £53m revenue, with guidance of consistent performance in 2H20. We reintroduce forecasts for FY20, £9.5m EBITDA from £105m revenue, as 3Q sees the re-invigoration of projects postponed through COVID-19 and the opportunity for recovery into 2H20 and FY21, on top of £3m annualised cost savings. Cloud & software grew to 25% of group revenue; recurring revenue is at 74%; and new CEO Ioan MacRae’s measures to deliver efficiency and growth will increasingly bear fruit in 2H20 and FY21. Even if you think our 600p (11.5x a depressed level of EBITDA) target is wrong, the current share price is more so, with a current FY20 P/E of 6.0x and EV/EBITDA of 5.6x, and 1H proof of credible FY forecasts.

Companies: Maintel Holdings Plc

29 Oct 20

A lower EBITDA decline than in Q1 and the outlook slightly raised

Q2 EBITDA was slightly better than expected, down by only 3% yoy despite an expected 7% revenue decline. As a result the EBITDA outlook for 2020/21 has been slightly raised. We have a Buy on the stock which offers significant upside potential to our target price as it has not recovered since mid-March and is still down by 50% ytd. Now that the dividend has been cut, we continue to believe that BT merits a much higher share price.

Companies: BTQ BTAN BTGOF BT/A BTQ

16 Nov 20

Profit growth on track

Today’s update demonstrates 20% operating profit growth at the technology group specialising in comprehensive radio frequency communication solutions across multiple sectors for the first nine months - a function of revenue growth (+2%) coupled with cost savings and operating leverage. A good performance given the global backdrop. EBIT margin increased 150bps to 10.1% and this higher margin means MTI remains on track to meet our FY20 profit forecasts albeit on a lower revenue base and we reduce revenue forecasts by 6%. We anticipate limited cost inflation in FY21 and hence profit forecasts remain unchanged but we trim revenue. We also introduce FY22 forecasts. MTI has a diversified business and each division can point to structural growth drivers. Despite a good share price performance this year (+28%), the current price fails to reflect MTI’s track record and growth potential, balance sheet strength and yield. We set a new fair value (63p from 46p), equivalent to an FY21 EV/EBITDA of 11.4x falling to 10.1x in FY22.

Companies: MTI Wireless Edge Ltd

16 Nov 20

A reassuring flat EBITDAal margin in H1

As in Q1, a quite correct resilience to the COVID-19 impacts in Q2. The good news is indeed the H1 EBITDAal margin, which was stable yoy despite the slight decline in revenues. Free cash flow should therefore be at least €5bn for the whole year. So we have no concerns about Vodafone’s dividend and we remain at Buy on the stock.

Companies: Vodafone Group Plc

16 Nov 20

mVISE - EKF interview

04 Sep 20

CyanConnode Holdings - 2020 Full Year Results Q&A

17 Nov 20

AdEPT Technology Group' there to help clients 'going through tremendous transformation'

27 Aug 20

BATM's Zvi Marom hails first tier-1 customer for its NFVTime virtual networking solution

09 Sep 20

SRT Marine Systems plans to 'peddle on' with core technology for the maritime industry

17 Aug 20

BATM Advanced Communications to reinstate dividend as it expects big jump in full year earnings

19 May 20

MTI Wireless Edge Ltd - Interview with CEO Moni Borovitz

30 Jul 20

SigmaRoc's Max Vermorken reports strong earnings and revenue growth in first half

14 Jul 20

AdEPT Technology puts in 'resilient' performance and continues to close substantial orders

15 Jul 20

BATM's Zvi Marom expects 'substantial revenue' from its three new diagnostic kits

05 Oct 20

BATM Advanced Communications lands €4m order for Coronavirus diagnostic kits

09 Jun 20

SigmaRoc PLC has been trading profitably each month of this year-to-date

06 Aug 20

BATM Advanced Communications hails successful proof-of-concept trial with Vodafone

21 May 20

AdEPT Technology's Phil Race details new strategic partnership with 8x8

09 Jul 20

Strong momentum and positive sentiment in the gold price to continue - Davide Bosio

Latest Content

Telenor Norway with 5G FWA + other news

Launches a 5G version of FWA (broadband) – no impact on estimates M&A speculation in Europe: Vodaphone and Masmovil (once again) Recent EU ruling on 02/Hutchinson a catalyst for European consolidation?

TEL TELNF TEL TEL TEQ

26 Nov 20
-

Cenkos: Calnex Solutions plc -- Interim results and forecast upgrade

Calnex Solutions Plc

25 Nov 20
-

Kcell Joint Stock Company - Handsets and low churn drive forecast increase

After a Q2 affected by COVID-19, Kcell’s revenue and profit growth accelerated sharply in Q3. Handset sales (+124% y-o-y to KZT11bn) were the main surprise (again), but there were encouraging trends in the services business also. Kcell posted its highest net additions in six years with churn remaining close to record lows. These trends are further evidence of an improving market and the success of Kcell’s new strategy in our view. We raise our FY20 EPS forecasts by 23% to KZT120.

Kcell JSC Sponsored GDR RegS (KC1A:FRA)Kcell JSC Sponsored GDR RegS (KCEL:LON)

23 Nov 20
-

A remuneration up by 4% without counting the sale of Telekom Romania

The group released a solid set of results in Q3, in particular on the Greek fixed side, while mobile was logically impacted by the absence of tourists during the summer. The gains from the sale of Telekom Romania (announced recently) should be distributed to shareholders through an exceptional dividend of c.€0.55 per share. Given its solid balance sheet and free cash flow, the group intends to increase its ordinary shareholder remuneration by c.4% for 2020. We maintain our opinion at Add on the stock.

Hellenic Telecommunications Organization SA

23 Nov 20
-

Morning Note – 19 November 2020

Somero Enterprises, Inc. (SOM:LON)SRT Marine Systems plc (SRT:LON)

19 Nov 20
-

SRT Marine Systems - A solid H1 platform for Systems delivery in H2

The Interims are as announced in the October update; H1 2021 was better than expected considering the lockdown and leaves SRT well positioned to benefit from meeting Systems delivery milestones, receiving major cash payments and signing new contracts in H2. As last year, H1 revenues are just from Transceivers, with no Systems milestones booked in the period. Last year, that was a quirk of timing in project deliveries, but this year Systems deployments were paused due to the pandemic. Despite global lockdowns, the Transceiver business is growing impressively on the back of new products and channels. Meanwhile, Systems recommenced delivery of the Philippines BFAR system and awaits news on three major contracts in the Middle East, expected to be signed and started this H2. Importantly, the group cash position is strong; £8.5m of Systems payments and the £5.3m April refinancing left gross cash of £5.0m at September; vital for working capital to deliver the Philippines project, which continues to make solid progress. Otherwise, investors await the anticipated new Systems contracts currently in negotiation. The fundamental demand drivers for Maritime Domain Awareness (MDA) systems remain undiminished and the validated sales pipeline remains firm at 17 new contract opportunities totalling £550m.

SRT Marine Systems plc

19 Nov 20
-

AdEPT Technology Group' there to help clients 'going through tremendous transformation'

AdEPT Technology Group Plc

17 Nov 20

Resilient H1, well positioned for recovery

AdEPT Technology Group Plc

17 Nov 20
-

Standing shoulder to shoulder with Orange on fixed

Iliad has released a solid Q3, which confirms a clear improvement trend in France. The group has indeed succeeded in finding its way back to growth and is standing shoulder to shoulder with Orange on winning new customers on the fixed high-end segment. The group seems, however, at its price after the 40% increase in its share price since the massive buy-back of its founder Xavier Niel nine months ago.

Iliad SA