Awareness and be AWARE

in the concensus there is always 2 signals
your choice
but all comments taken with a pitch of salt\

Firstly, great to meet you @bullswool, luckily we were there with boots on the ground otherwise we would be flying completely blind.Bear in mind all of this comes from a conversation with Nick Yeoh after the meeting, the actual formal meeting was a shitshow. The company secretary (I think a rep from the registry) had to chair the meeting, he fumbled his way through the resolutions that remained and closed the meeting once votes were cast. No business presentations or questions.Afterwards, Nick said that earlier this week while checking the incoming votes they noticed a large voting bloc against the resolutions to re-elect Tino and appoint Nick and Jitto to the board. I suspect @Bushmanpat's rough calculations are correct with the shareholdings. It became quite clear what was happening, but no one knew why the Chair and his affiliated votes would drastically and suddenly revolt against fellow board members.Nick hypothesised that the succession plan that was in place to have Jitto replace Ying Ming sometime next year was potentially the issue, but that is not confirmed. If so, why also vote against Tino and Nick?The remaining board members met this morning and decided to resign. I don't think that was a good decision, from a corporate point of view I think it would have been better to accept the vote and deal with issues later on, but regardless that was what was decided.That was really all Nick could share on the board situation. I don't believe anyone had communication with Ying Ming (who was at the meeting, I am not sure if that was a surprise or not) to find out what his intentions were.Nick gave us an informal operational update. Other employees were there (as dumbfounded as everyone else) to chime in with any comments. Nick said they would "support" Tritium through their restructure, I took that to mean still supplying them but probably on a short rope. The new defence product will soon be released and would have been a focus of the business update plus an update on the megawatt charging with a new 200kw rectifier in early development.A couple of other points to potentially clear things up:The directors who resigned from the board have not resigned from the company. They are all still in their operational roles, but don't support the actions of the Chair (labelled hostile in the ASX announcement).I don't believe Yanbin Wang the CEO is associated with Ying Ming Wang the Chair and these actions. They may have been in the past given Yanbin was appointed shortly after Ying Ming became Chair, but Yanbin remained after the meeting with the other board members and executive staff and has since resigned.Given the board now doesn't comply with the Corp Act with everyone stepped down except for Ying Ming Wang, this is a probably a nuclear option but it forces a speedy resolution to what could be a long drawn out board spat. Hopefully Ying Ming Wang accepts his move has backfired and steps down from the board.On top of that, the weather in Melbourne was shit. Got rained on walking to the meeting.618 comments56 more...#Quick MathsWiniLast edited 6 months ago2 plus 2 is 4, minus 1 that's 3, quick maths.The normally tight-lipped RFT management provided some granular detail I didn't expect to receive in the recent annual report by breaking out how much of the contracts received from Tritium and i-charging had been delivered and what was remaining. 75% of Tritium's $20m USD order has been completed, and 37% of i-charging's $22m order has as well. That leaves ~$19m USD to deliver with management stating they were on track to complete by the end of 1H24.Which gives us a nice platform to work off what the 1H result may look like. At a 65c exchange rate that gives us ~$29m AUD from those two contracts. I expect the remaining business to contribute it's usual $3m plus in FY23 there was $4m in non-Tritium/i-charging EV revenue which I am not sure how to account for looking forward but let's assume that is $1m in the current half.Tally that all up and it comes to ~$33m revenue in 1H24, compared to $19m last year. EBITDA margins fell half on half last year from 25% to 23% as RFT takes a slight margin haircut on the large volume orders, so let's apply the 23% margin to get $7.5m EBITDA. I see no reason why ITDA would change much from it's ~$500k a half leaving $7m profit before tax. Apply a 25% tax rate and you get $5.25m NPAT for 1H24.At a current market cap of $65m, $5m+ earnings in the first half would leave the business trading exceptionally cheaply especially given the growth. Of course, the big question is what does the 2H look like as those big contracts roll off. When he presented to ***, Exec Director Nick Yeoh noted that once their rectifiers are integrated into a customers product the decision to shift away isn't taken lightly. Given i-charging's Blueberry chargers are so new to market I can't see them shifting away and would expect some commentary on a further commercial relationship with them. Tritium is harder to peg given it's never been disclosed exactly what products RFT's rectifiers are in and there is a chance newer products have been designed without them.I plan on getting down to the AGM in November and seeing if I can get some light shed on the big question of what does 2H24 and onward look like. Commentary from the annual report was positive, but no doubt the market would like the certainty of renewed contracts or supply agreements.644 comments59 more...#ASX AnnouncementsstaleWiniAdded 12 months ago27/2/23 Half Yearly Report and AccountsA fantastic result from RFT, revenue of $19.3m was not only a record for a half year but eclipsed any full year in the company's history. Margins held up better than I expected as well with NPAT of $3.8m leaving the business well placed to smash my $4-5m target going into FY23.While all segments improved, it was the supply of rectifiers for electric vehicle chargers than drove the result. Revenue in the EV segment grew from $4.5m to $15.7m and EBITDA margin improved from 9.6% to 29.5%.The big question from this result is whether it is sustainable. As I have outlined before the near future is underpinned by some large EV contracts with Tritium and i-charging for $20m and $22m USD respectively. It is hard to gauge exactly how much of this result came from those contracts (and how much remains in the pipeline) but considering the i-charging contract was only signed in mid-November and in late September RFT updated the market with delays to the Tritium contract with only "part" of the order fulfilled I would think they have yet to contribute meaningfully. Even if the full $15.7m from the EV segment came from those contracts, it would still leave $47m in the pipeline to sustain strong profit results like this for the near future. No doubt moving forward profit results will be lumpy, there is a lot of operating leverage in the business but I think the pipeline is strong enough to sustain growth moving forward.Add comment..
i will be buying big again>