PWH remains at the forefront of technology
We attended PWH's AGM recently, and outside of the usual formal matters we had the opportunity to view some of the company's latest range of cooling solutions. The products represent the cutting-edge of cooling technology that is currently being used in motorsport, high-end supercars and emerging technologies such as battery cooling and cold plate cooling.
The key highlight was the introduction of the "micro-matrix", which in our view will be a game changer going forward, particularly in emerging technologies and new markets such as aviation/aerospace. The micro-matrix is a miniature cooler (this is the best way we can describe it) that allows fluid or air to flow through the product via small pin-like tubes. The micro-matrix is significantly smaller than a conventional cooler and therefore saves space and weight, which are particularly important factors in motorsport and aviation/aerospace.
PWH has been developing this technology over the past couple of years and over time we see the technology being transferred to the rest of its cooling range resulting in significant benefits for customers.
Passionate staff highlights a strong culture
The event also gave us an opportunity to speak to a number of senior engineers to learn more about the products as well as the work pipeline ahead. It was clear from all our discussions that the engineers were very busy planning for the year ahead and were also very passionate about their role. All were long-serving employees which highlights to us the dynamic and positive work environment that exists within the business.
Still plenty in the pipeline
PWH's work pipeline up to 2022 looks very strong with the company being awarded a number of OEM contracts. This includes the Ford GT500, Aston Martin Red Bull Valkyrie Hypercar, Pagani and Porsche 935 70th Edition Track Car.
Management is currently in discussions regarding a number of other OEM contracts. Given our increased confidence in PWH's medium term growth outlook we have increased and share price target and retain our Add recommendation.
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Disclaimer(s): Analyst owns shares.
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