ASX:SKS
SKS Technologies Group Ltd
Investment Summary
The fund managers believe SKS Technologies Group Ltd. (SKS) is on track to meet its FY25 revenue guidance of $260 million, with Q1 results aligning well with expectations. In their opinion, the company's target profit margin of 6% places its current valuation at the higher end of its fair value range for a contracting business. However, they believe there is potential for SKS to exceed its revenue guidance, which could result in a more favorable earnings multiple. The fund managers remain cautiously optimistic about the company's growth prospects.
Please note: The completeness, accuracy or current status of the investments referenced are not guaranteed.
Commentary From The Manager
Mereweather Capital
Date
31 Oct 2024
Price
$1.45
Medium
Monthly Report
Commentary
Mereweather Capital Inception Fund continues to hold SKS Technologies (SKS) due to the company’s strong start to FY25, with first-quarter revenue of $64.9m nearly on track to meet the $260m target. Despite trading at a higher earnings multiple of 16x, the fund believes SKS may exceed its revenue guidance, which could lead to a lower multiple. This positive outlook on revenue growth and earnings potential supports the continued holding of SKS in the portfolio.
Please note: The completeness, accuracy or current status of the investments referenced are not guaranteed.