So based on the $30m contract last year with Lotte that supplied 1500 units in a year, this contract has to be for at least 3000. At the current rate of production, this will add at least 700 units this financial year but one would have to think they could ramp up production to fill the order more quickly.
ICP's portion of this additional revenue will be a minimum of $7m which one would have to think is over and above any revenue forecast previously. This should add about $700k to the Net Profit line which equates to a total earnings per share of 8.2c. Apply your own PE rate to this but a conservative PE of 10 has the SP at 82c.
If the company ramps up production and adds another shift to their manufacturing facility, you would think as a minimum another 700 units could be sold this financial year adding another .8c to EPS and therefore 8c to SP.
Target for me in the near term is now 90c. This is only based on this year's earnings and does not allow for any continued future growth.
I await eagerly the company earnings guidance!
STL Price at posting:
49.0¢ Sentiment: Buy Disclosure: Held
