QHL 1.92% 26.5¢ quickstep holdings limited

Is QHL too conservative in its communication?, page-3

  1. 28 Posts.
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    Sorry I missed the thread.
    However, the doors QHL produces have very sharp and thin angles. One of them is the fuel door that gets opened all the time and fed with metal bowser which will ding the panel all the time. Because these panels are essential for the stealthiness of the aircraft, they will have to be repaired/replaced. If you consider that they may return 20% of the installed panels for repair per year for 3,000 aircraft that is 600 panels. You would get not much change out of $10K per panel at production price, maybe twice at maintenance price. They have a number of those doors and potentially many more panels. The fuel door alone gets you $12m a year turnover, $6m a year profit. With a P/E of 10, typical of such defence companies, that is an increase in the market cap of $60m, as much value for the whole of the company now. It is a lot more significant than you think...Certainly a lot more significant than the Xray machine they announced. Do the management understand their own business.
 
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