Baylin Technologies Inc. (TSX:BYL) stock was up 5.88% in late morning trading on January 18. Shares have climbed 4.6% in 2018 thus far. The stock rose after the announcement that Crown Capital Partners Inc. had completed a $33 million term loan to Baylin.
Baylin Technologies is a Toronto-based wireless technology company. It has provided wireless antenna solutions for almost 40 years and provides design, manufacturing, and supply of antennas for wireless infrastructure, networking, and mobile markets. The company used the proceeds of the term loan to acquire key segments of Advantech Wireless Inc., which is a provider of wireless broadband communications.
Baylin released its 2017 third quarter results on November 1. Revenue rose 21% year over year to $27.1 million as the company added a significant Asia Pacific customer and launched a small cell antenna product. It reported gross profit of $8.4 million, the highest in 15 quarters. Net income was $896,000 compared to $230,000 in the prior year.
The stock has increased 65.9% year over year. Baylin expects to release its first Base Station Antenna (BSA) product to the market in 2018. The company also projects continued strong growth in its Asia Pacific region. However, Baylin hopes to decrease its reliance on its major Asia-based customer in the future.
Baylin is projecting an increase in revenue from its small cell antenna product line in the fourth quarter and in 2018. MarketsandMarkets projects that the wireless market will rise from $6.73 billion in 2017 to $13 billion worldwide by 2023.
Baylin is an attractive buy and hold after its recent performance and the growth potential of the wireless market.
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