Pinned straw:
Hi @juneauquan - I noticed this announcement too. It's a good announcement and things look positive, but the stock is very thinly traded - maybe only 100k per day. MYG is coming off some poor years, so its a turnaround story, with a new CEO. I think it's turning, but I'll be watching the year end result closely to get the best read of progress.
Disc: Held IRL & SM.
MYG result out today. From my perspective I thought the result was pretty much as expected - market didn't like it, but seems like a superficial fall of 15% on low volumes - my guess is a reaction to the headline of a reduction in profit (but that is complicated by use of an income tax benefit - underlying it's actually improving about 10%). It's a now $70m market cap company with $14m in the bank (after divs just paid), no debt and a $13m property. It makes NPAT of c. $5m a year (FCF for this year was $15m, although I would hesitate to say that is "sustainable" FCF given how much working capital drove that result). The product seems to be in increasing demand (10% plus increase in rev), pitching into growing market - including newer technology applications for switch boxes, electrical switchboards, etc.
Forward strategy is set out in the annual report:
I am wondering whether the drop is a combination of panic-selling on the 'omg, profit has fallen' first look, low liquidity and stop-losses.
Profit before income tax credits actually rose by about 20% insted of profit dropping 12% (see attached)
They tried to mention this in the commentary:
The profit for the Group before income tax amounted to $4,759,819 (30 June 2023: $3,904,663). Based on the strong performance and positive outlook of the Group, an additional $1,914,393 of prior years’ unrecognised tax losses (30 June 2023: $3,171,668) has been recognised as a deferred tax asset and income tax benefit. The profit for the Group after providing for income tax amounted to $5,101,645 (30 June 2023: $5,797,122).
