News: MCE Matrix Composites & Engineering Receives Binding Purchase Order Valued At About A$44 Mln, page-7

First 7 Last

Share
Profile

Follow
ValueSearch

940 Posts.

314

07/02/23

14:13

Post #: 66119334
Share

Originally posted by madamswer: ↑

"MCE has significant operating leverage and enough capacity in thesir manufacturing plant to deliver on a materially larger amount of contracts than how we are operating currently. If earnings improve and margins normalise returns to shareholders will be meaningful."

Good summary; thanks @Ahf1995,

The combination of operating leverage and increasing capacity utilisation is a powerful one.

You referenced capacity in their manufacturing plant.

The question which I'm desperately struggling to answer is how fully utilised the factory is at the moment. And the rider to that, namely, if it was to be fully utilised, what levels of Revenue would ensue?

I know that during the past global oil industry investment boom this company generated Revenue averaging over $150m pa for the period between 2011 and 2015 (peaked at a whopping $175m in FY2011).

(Noting that the profit margins at that $150m Revenue level will now be a bit lower than the 2011-2015 levels because of the subsequent sale and leaseback of the factory.)

But I'm not sure to what extent the operational setup is still the same as it was a decade ago, and therefore whether $150m Revenue is attainable.

Do you have any sense of how much of the factory's capacity is still free, and where the Revenue line might land at, say, levels of 80%, 90% or 100% capacity utilisation?
.
.

Expand

MCE operated out of a Malaga factory till 2011, when they moved to the Henderson factory. If you read releases for the next few years they started with 1 or 2 shifts and slowly upped it to 3. You could match the revenue changes will the change in shift #s. Will do a bit of research when I have some spare time.
Malaga had a lot of capacity constraints.

MCE Price at posting: 29.5¢ Sentiment: None Disclosure: Held
5 Upvote

0 Great analysis

Reply

Top Stories

Is the ASX getting its groove back? Here's 5 IPOs in September to watch

LTR

Liontown's first spodumene shipment to leave Kathleen Valley this month – but prices far from 2022

BOE

Boss Energy ramps up as industrial-scale plant build continues; FY25 guidance of 850Klb intact

SKS

SKS secures $20M for extension works on Melbourne data centre

SMR

Stanmore inks deal with Anglo American and Exxaro to explore and mine area close to Isaac South project

There are more pages in this discussion • 10 more messages in this thread...

First 7 Last

Add MCE (ASX) to my watchlist

(20min delay)
Last 34.0¢		Change -0.010(2.86%)		Mkt cap ! $74.64M

Open	High	Low	Value	Volume
34.0¢	34.0¢	34.0¢	$1.02K	3K

Buyers (Bids)

No.	Vol.	Price($)
1	2500	32.5¢

Sellers (Offers)

Price($)	Vol.	No.
34.0¢	30000	1

View Market Depth

No.	Vol.	Price($)
1	2500	0.325
3	36779	0.320
1	3171	0.315
3	89132	0.310
1	15000	0.305

Price($)	Vol.	No.
0.340	30000	1
0.345	10160	1
0.350	78847	2
0.360	32500	2
0.365	3800	1

Last trade - 10.04am 04/09/2024 (20 minute delay)

MCE (ASX) Chart

News: MCE Matrix Composites & Engineering Receives Binding Purchase Order Valued At About A$44 Mln, page-7

Is the ASX getting its groove back? Here's 5 IPOs in September to watch

Liontown's first spodumene shipment to leave Kathleen Valley this month – but prices far from 2022

Boss Energy ramps up as industrial-scale plant build continues; FY25 guidance of 850Klb intact

SKS secures $20M for extension works on Melbourne data centre

Stanmore inks deal with Anglo American and Exxaro to explore and mine area close to Isaac South project

Featured News

Buyers (Bids)

Sellers (Offers)

Featured News

News: MCE Matrix Composites & Engineering Receives Binding Purchase Order Valued At About A$44 Mln, page-7

Top Stories

Is the ASX getting its groove back? Here's 5 IPOs in September to watch

Liontown's first spodumene shipment to leave Kathleen Valley this month – but prices far from 2022

Boss Energy ramps up as industrial-scale plant build continues; FY25 guidance of 850Klb intact

SKS secures $20M for extension works on Melbourne data centre

Stanmore inks deal with Anglo American and Exxaro to explore and mine area close to Isaac South project

Featured News

Buyers (Bids)

Sellers (Offers)

Featured News