As the market looks forward to a record half year for RFT but has concerns over whether it is sustainable, RFT have posted this three days ago on LinkedIn, referring to their recent full year results -

As we celebrate this milestone, we remain focused on fostering sustainable growth and delivering exceptional value to our clients. We are confident that our strong foundation will enable us to thrive in the coming years.

Thank you to our incredible team for their unwavering dedication and passion. Together, we have achieved remarkable results and set the stage for an even brighter future.

View our official FY23 results here: https://lnkd.in/g8qEUMWS

Good update from Rectifier today especially around orders. Based on this update they have supplied 75% of Titanium's orders and 37% of I-Charging orders and expect the balance to be delivered in FY23. So we can expect them to achieve sales of at lease $29M AUD for this half year. That is very significant when you consider total revenue for last FY was $39.4m.

On the outlook they stated this -

"Long-Term E-Mobility Outlook: Despite near-term grid capacity challenges, the Company expects continued revenue growth in the E-Mobility sector due to consistent demand for charging modules.

In conclusion, the Company is strategically positioning itself for growth in the EV industry, focusing on innovation, automation, and customization to adapt to evolving market needs."

This bodes well for the future and based on these statements, I expect some pretty big order announcements over the next few months.

This statement is also very bullish from them and outlines the huge tailwinds if they are successful -

"RT22 Opportunities: The Company has identified new opportunities for the markets of the RT22 in conjunction with existing customers and new customers to sell the product into the USA Federal Government National EV Infrastructure (NEVI) $7.5b program by redesigning the RT22 for automated manufacturing in high labour cost environments."

Currently trading on a PE of 10x possible a lot lower if they can show reasonable growth this FY

RFT stated this in their half year report and could signal that a new order is likely in the near future -

"The customised 'high-voltage input rectifier' project development is on track to provide prototypes to the customer in mid- 2023. The customer requires production to commence in early 2024. Our research and development team is in the early stages of investigating a customised liquid-cooled rectifier module development, once an agreement with the customer is signed, the project will commence in earnest."

Great result from RFT as a number of members on this platform eluded to -

Sales of $39.8m up 144%

Profit of $6.6m up 1212%

Market cap of just $73m and they have over $6m in cash

Inventories of $18.5m up $12.6m which is a great indicator that they still have a huge pipeline of order to fulfil following on from the announcement of USD42m in contracts announced over the last year.

Also very bullish commentary from the company indicating that they are becoming more investor focused with an added option plan for the staff.

Looking forward to a great full report from RFT for the following reasons -

• First half achieved sales of $19m and net profit of $3.7m
• Announced a purchase order for AUD 33m from I-Charging in November last year to be delivered by the end of this calendar year
• Nicholas confirmed that this order was on track in the recent interview on Strawman
• This is just one customer and doesn't take into account other orders/customers
• They increased their inventory by almost $4m in the first half of FY23 to almost $10m in order to fulfil orders.

If they can achieve a similar result for the second half, then their full year result should come in at $7m plus net profit, putting the business on a multiple of around 9. This is too cheap for a fast growing business in the EV space. I believe a multiple of around 20 would be more reasonable.