NeraTel    Last:0.168   -

Nera Telecommunications - The hidden Gem

NeraTel is great for defensive and dividend play if the purchase price is 63cts or less.

It went up to over 80cts last year because of Myanmar story which didn' t (haven' t) materalised.

My view is at current price it is no longer attractive as both defensive and dividend play unless there are sign of growth in its topline and bottomline whether from Myanmar or not.

My 2cts.

john_ric      ( Date: 18-Jul-2014 23:39) Posted: i think this laggard is moving. it offers ~~5% dividend. not a bad stock to hold for long term.

 

i think this laggard is moving.

it offers ~~5% dividend.

not a bad stock to hold for long term.

 

$0.78 , up 1.5 cents todays

Interesting.

 

Latest news was this morning where the group announced that it has received $31.1m worth of contracts. Apart from that, in its latest FY13 results few weeks back, NeraTel posted FY13 earnings of $23.5m (+21%) that came in above street estimates, while flat revenue of $178.2m slightly missed. For 4Q13, net profit of $3.8m and revenue of $44.5m was largely unchanged y/y. For the quarter, NeraTel&rsquo s top line was hurt by slower sales of microwave radio equipment in the Middle East and Africa market under its Telecom segment (-28% y/y), but balanced by better sales of network equipment to the service providers under its Infocomm segment (+22%). The group&rsquo s gross margin improved from 31.0% to 35.1%, driven by an improved sales mix, as well as higher profit margin recorded from the completion of projects, but the impact on bottom line was negated by absence of a one-off gain related to accounts collection in 4Q12. Going forward, competition in the Telco segment is expected to remain intense, with major global telecom equipment vendors aggressively competing to gain market share and customers driving down operational and capital expenditures. The Telco segment ended FY13 with an order in-take of $67.6m (-8% y/y) as a result of lower orders from both Wireless Infrastructure Networks and Satcom business areas. The Infocomm segment may perform better, having secured $125.7m (+24% y/y) of order in-take, driven by the Network Infrastructure and Payment Solutions businesses. Management declared a final dividend of 4¢ , bringing full year payout to 6¢ (FY12: 8¢ ), implying an attractive 8.2% yield. NeraTel continues to maintain its strong financial position, with zero debt, and cash of $39.3m (10.9¢ per share). At $0.735, NeraTel trades at 11.3x P/E.

 

4Q13 net profit slipped 0.6% y/y to $3.8m on a 2% pullback in revenue to $44.5m. This brought FY13 earnings to $23.5m, above street estimates, while revenue of $178.2m came slightly below. For the quarter, the dismal topline came on the back of lower sales of microwave radio requipment in the Middle East and Africa market in its telecom business (-27.5%), partially offset by better sales of network equipment to the service providers under its infocomm segment (+21.7%). 4Q13 gross profit margin improved from 31.0% to 35.1% on a change in sales mix, as well as higher profit margin recorded from the completion of projects. Group maintained its final dividend of 4¢/share, bringing full year dividends to 6¢. At $0.715, NeraTel trades at a trailing 11x P/E.

 

FY results out tomorrow. As usual waiting for divided of 4 cents.

Cheers.

 

 

When is the XD date? I'm waiting as well... Today drop is a good entry point but as usual I hesitated.... Zzzzz....

morningstar13      ( Date: 13-Aug-2013 11:13) Posted: Yield has been compressed too much by the surge in price ... wait for XD to buy ...

 

climing up so fast today ,  breaking $1 soon .  haha

 

Yield has been compressed too much by the surge in price ... wait for XD to buy ...

 

how come nobody support this counter.....

 

breaking record soon......

 

very potential one , TP $2    haha

 

2Q13 earnings increased 213.4% y/y to $10.5m, mainly due to a $7.1m gain after acquiring the remaining 70% equity interest in an associate at a discount on the fair value of net assets. Otherwise, 2Q earnings were almost flat at 1% y/y of $3.4m and 1H13 earnings of $9.3m (-0.5%). 2Q13 revenue rose 13.1% to $47.2m due to an impressive gain of 75.5% to $19.3m in its telecom segment coming from higher sales of microwave radio equipment in the wireless infrastructure network business in Middle East and North Africa. This was partially mitigated by a dip of 9.1% in its infocomm segment to $27.9m after achieving lower sales of network equipment to service providers due to a delay in projects and lesser delivery of point-of-sale terminals for the quarter. 1H13 revenue fell 7.1% to $51.1m y/y. Gross profit margin for the quarter improved slightly to 30.8% from 29% and 35.5% from 32.3% for 1H13. This was attributed to a higher sales mix in products, projects and services for both segments, as well as higher profit margin upon completion of certain projects. Despite keen competition, demand for wireless infrastructure networks from mobile operators continue to be driven by the growth in mobile users, broadband services and compliances to stringent regulatory service standards. Separately, another key growth area will come from its network infrastructure segment which will be driven by increasing smart devices, internet, web services and regulatory compliances where services providers will continue to build, expand and upgrade their networks. Enterprise and public spending will also grow towards upgrading IT network infrastructure to achieve higher productivity, service and security. The interim dividend halved to 2 cents. NeraTel currently trades at 11.5x forward P/E and 4.3x P/B.

 

Profit up so much, but only 2 c dividend? Last yr gave 4c during the same period

 

2 cents interim dividend!!!!!

 

Continue to fly!!!

Dividend_Warrior      ( Date: 15-Jul-2013 18:16) Posted: Fly! Fly! Fly!

 

U are very optimistic! 

francisd      ( Date: 05-Aug-2013 09:53) Posted: Half year dividend on the way. Shd. be around 2-4 cents. Looking forward.   Cheers.

 

Hope tomorrow I can buy some Champagne for celebration!!! Really looking forward! Huat Ah!!!

 

Half year dividend on the way. Shd. be around 2-4 cents.

Looking forward.

 

Cheers.

 

The Board of Directors of Nera Telecommunications Ltd (the " Company" ) wishes to announce that the Company will be releasing its second quarter financial results for the period ended 30 June 2013 on  6 August  2013, after trading hours.