Month: February 2021

Here’s why the Magnis (ASX:MNS) share price is powering up 12% today

Two hands raised against eachother with lightning flashes between them, indicating and energy clash between fossil fuels and renewables

The Magnis Energy Technologies Ltd (ASX: MNS) share price is shooting higher today. This comes after the battery technology company released positive initial results for its fast charging (FC) battery program.

During afternoon trade, the company’s shares are up 12.07% to 33 cents. In the first hour of trade this morning, the Magnis share price reached as high as 35.5 cents.

Magnis share price rises on significant results

The Magnis share price is on the move today as investors appear upbeat following the company’s latest update.

In its announcement, Magnis reported that it has received initial successful test results in its FC battery program. Using optimised cells developed by partner company Charge CCCV, Magnis achieved 93% battery capacity retention after 600 cycles. This occurred by the company adopting a 30-minute charge and 30-minute discharge process.

Magnis advised that following the excellent outcome, it has moved to more aggressive tests with extra fast charging (EFC) batteries. The new test work will aim to attain an 85% charge within 6 minutes.

Magnis explained that its EFC tests are using optimised cells that have 99% energy density of a regular iM3 energy cell. This means that an FC battery cell can slow down energy density loss when compared to a traditional battery cell.

Market opportunity

Charge CCCV (which is the technology partner of Magnis) is engaged with commercial electric vehicle manufacturers to develop a low-cost sustainable EFC battery.

As announced in July last year, Charge CCCV will provide batteries for a New York demonstration bus trial, with the EFC system to be installed on some New York City bus routes. The program’s purpose is to create a more environmentally friendly transportation alternative operating in one of the world’s busiest cities. It’s estimated that if the system is deployed city-wide, over 500,000 metric tonnes of carbon dioxide will be removed each year.

The EFC cells to be used in the bus program are expected to be completed and delivered sometime this week.

What did the head of Magnis say?

Magnis chair Frank Poullas hailed the milestone results, saying:

We are really excited by this technology from Day 1 as it will be a game changer for the commercial transport industry. Today’s announced results are an early step forward toward turning this technology into a commercialised product.

The Magnis share price has accelerated by more than 300% over the last 12 months.

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Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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Regional Express (ASX:REX) share price takes off despite loss warning

rising airline asx share price represented by boy playing with toy plane

Regional Express Holdings Ltd (ASX: REX) shares are lifting off today following the release of the airline’s half-year (1H21) results. At the time of writing, the Rex share price is trading 2.84% higher at $1.63 a share.

Let’s take a look at how the company has been performing.

What’s driving the Rex share price?

The Rex share price is on the rise today despite the airline reporting that its passenger numbers decreased by 71.2% for the period due to coronavirus travel restrictions.

Revenue (excluding government grants and subsidies) for the half sank by 60.5%, or $100.6 million, to $65.6 million compared to 1H20 revenue of $166.2 million.

However, Rex’s total 1H21 revenue including government grants and subsidies was $125.1 million.

Net profit for 1H21 jumped 43.5% to land at $9.9 million vs $6.9 million for 1H20.

In other news boosting the Rex share price, the company’s earnings per share (EPS) popped up to 9 cents for the 1H21 period from 6.2 cents in the prior corresponding half.

Total assets at the end of the first half came in at $274.2 million, compared with $252.8 million in total assets in 1H20.

CEO comments 

Commenting on the airline’s results, Rex executive chair Lim Kim Hai said: 

The COVID pandemic has completely devastated every passenger airline and has been the most significant set-back the global airline industry has ever experienced in its history. Rex would have been obliged to shut down over 90% of its network if not for various federal and state governments assistance programmes…

Rex’s regional operations in 2H FY21 are only expected to be marginally improved compared to the first half as the roll out of vaccination from March is not expected to make a significant difference until the new financial year. Should this eventuate, then the expected cessation of all government assistance packages in the final quarter of this FY will mean that the Group is expected to incur significant losses in that period.

The board did not declare a dividend and Rex did not provide any guidance due to the “extreme volatility” the company is facing.

Rex share price snapshot 

The Rex share price has climbed by more than 50% over the past six months and more than 65% over the past year.

Based on the current share price, the company’s market capitalisation is approximately $174.6 million. Rex currently has 110.2 million shares outstanding.

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Motley Fool contributor Gretchen Kennedy has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Tesserent (ASX:TNT) share price is sinking 20% on record revenue

Two men react in shock at Evolution share price drop record profit

The Tesserent Ltd (ASX: TNT) share price is tanking today despite the company reporting a significant lift in revenues and earnings during its first half in FY21.

At the time of writing, the Tesserent share price is down 20.6% to 25 cents a share.

High growth not enough for Tesserent share price

Cybersecurity continues to be a focus area for many businesses and the Australian government. As our lives become more reliant and integrated with technology, the importance it has grows. The target on our critical data infrastructure has also expanded over time.

Consequently, many cybersecurity companies have been called into the fray over the last year as the issue becomes more prominent. The Australian Government also released its Cyber Security Strategy 2020, which will see $1.67 billion invested in the sector over 10 years.

The increased awareness of cybersecurity has aided in Tesserent’s year-over-year (YoY) turnover increase of 500% to $36.5 million.

Heading further down the income statement, operational earnings before interest, tax, depreciation, and amortisation (EBITDA) swung to a positive $2.9 million. This compares to the prior year’s $1.7 million loss.

Considering the falling Tesserent share price today, the question is why? A potential inhibitor could be the bottom-line statutory loss before tax. Due to acquisitions and the company’s employee share option plan (ESOP), losses increased to $6.18 million in the half. This a 55% greater loss than 1H FY20.

Acquisitions centre stage for future growth

Tesserent outlined that the second half will benefit from the inclusion of its recent New Zealand acquisition, Lateral Security. In addition, six months of revenue and earnings will fold into the second half from Seer Security, Airloom, Ludus Cybersecurity, and iQ3.

Furthermore, the company stated that all of its FY21 goals remained intact. Some of these include:

  • Focus on capturing market share in three key markets: Government (including Defence), critical infrastructure and banking & finance
  • Continuing to drive the company’s acquisition strategy to expand on Cyber 360 capabilities and increase shareholder value through incremental EPS growth
  • Explore international expansion opportunities with a focus on Australia’s key Five Eyes allies, which consists of the United States, United Kingdom, New Zealand, and Canada.

Importantly, the company’s results are unaudited and could change upon review. Tesserent informed the market that it would relay any changes once solidified.

Taking in today’s losses, the Tesserent share price is still up a whopping 325% in the last year. The cybersecurity company has been riding the wave of enthusiasm for the sector since mid-2020.

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Motley Fool contributor Mitchell Lawler has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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Why the MyFiziq (ASX:MYQ) share price is rising today

A fit man flexes his muscles, indicating a positive share price movement on the ASX market

The MyFiziq Ltd (ASX: MYQ) share price is gaining today as the company announced its half-yearly results after the close of trade on Friday.

Shares in the small-cap image capture and dimensioning technology provider are currently trading 2.09% higher, at a price of $1.96.

Strong revenue growth

The MyFiziq share price has shot up over the past month as the company’s revenue surged. For the half-year ending 31 December 2020, revenue rose 150.3% to $887,092.

However, this did not stop the company from slumping to a substantial half-year loss of $5.47 million, up from $2.9 million in 2019. The loss includes extensive share-based payments to suppliers, directors and employees under the company’s incentive plans. In addition, MyFiziq has incurred losses on its investments in various entities.

Regarding the company’s cash flow, net cash used in operating activities reduced from $1.77 million to $1.17 million. This is a $600,000 improvement on last year and was driven by a stable cost base and improvement in its collection of outstanding fees.

The company executed 15 binding agreements with channel partners across the six months. This boosted its cash balance, but it was its $5 million capital raise in October last year that generated meaningful cash. As such, this took the company’s overall balance to $4.7 million.

Strategic investments

MyFiziq’s joint venture partner, Body Composition Technologies (BTC), undertook a $1.92m capital raising during the period. Pouncing on the opportunity, MyFiziq invested $671,000 and now owns the majority stake with 54.5%.

The ASX listed company claims that although BCT has not yet started generating revenue, taking a majority stake provided the strategic advantage of consolidating additional revenue in the future.

Moreover, the company signed an agreement with Canadian-based Triage Technologies in December of last year. The deal will see MyFiziq take a strategic stake in Triage and licence the use of the Triage AI health assistant technology for integration into the company’s CompleteScan SaaS offering.

Under the terms of the agreement, MyFiziq will invest up to US$6 million into Triage, comprising US$3 million in cash and US$3 million in equity.

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When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

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Motley Fool contributor Daniel Ewing has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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