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...... highlight the possible reason for the low market value of CyanConnode and subsequently lowish share price.

From the report:-

" There appears to be a valuation disconnect between the progress being made in India ( and the leading position that has been created there and in other markets in Asia ) and the current market value. This is likely to be a function of the delays that have been experienced in the commencement of contracts won in the last two to three years, which have, in turn, impacted the company's ability to deliver against market estimates. However, against a backdrop of ongoing acceleration in shipments and corresponding strong revenue growth, the stock could experience a market re-rating, as investors confidence in the sustainability of these trends grows."

LTI.

Hello Inthetin,

Working with multiple bidders, especially in India, gives CyanConnode a greater chance of success. In my opinion. And the greater chance for success, is what you, I and other investors have/are investing in.

The order volume, for RF specific contracts, will not be as big as other related contracts. CyanConnode have mentioned a 15/20 percent potential RF market that they are targeting, of the 250 million overall market potential.

And conventional electric meters are still being manufactured and installed in India. But multi-million electric meter tenders that have been awarded in the past, have been trimmed recently.

But I am still cautiously optimistic. With the emphasis on " optimistic."

LTI.

Good morning Inthetin and all,

In part response to your 08:35 post today, the Hardman report covers the process that CyanConnode and other companies have gone through/are going through, in connection to the order process.

From the report:-

" The contract award processes for large-scale smart meter rollouts can be lengthy. In the first instance, the successful consortium will receive a letter of intent from the contracting entity. Once the contract is awarded to the prime contractor, CyanConnode ( and other sub-contractors ) will typically receive letters of intent. The period between this and the final contract award will vary but, on average, is around two to three months. Following this , a period of contract negotiation will take place, before final contracts are signed. CyanConnode has found itself working with multiple bidders for each of the major Indian contracts, significantly strengthening its prospects of success."

I seem to remember Heather going into a similar detail during one of the presentations.

LTI.

Good morning Inthetin,

I think I read somewhere that this UK/India Trade Deal went up to 2030? So time-scales will be relevant. But the CyanConnode " Careers " page, may be worth keeping an eye on, from time to time.

LTI.

Good morning 2cv,

It is good to hear from you again, despite these difficult times ( Covid ) and I trust you are keeping well.

I agree. The " ..... deal announced today ..... " is very encouraging indeed, but we will have to wait for details from CyanConnode directly, rather than a press release from the Prime Ministers office. But some great news overall, concerning the UK-India Trade Deal, which we hope will benefit both countries.

But India especially, is going through a difficult period at the moment, with all the difficulties they are having. I am sure we all wish them well.

Keep in touch.

LTI.

Good afternoon all,

Some more details released during the day, concerning the UK-India Trade deal.

http://www.gov.uk/government/news/prime-minister-announces-1-billion-of-new-uk-india-trade

LTI.

Good morning x54v and all,

A very comprehensive and detailed report on CyanConnode and the potential market that they are involved in. I have not read it all yet, but very encouraging, what I have read so far.

LTI.

You are welcome, Inthetin. Like yourself, just something I picked up on, about the same time.

LTI.

............. it seems, are also part of 39 new trade and investment partnerships, between the UK and India.

http://twitter.com/CyanConnode

LTI.

Hello CB,

I am giving an opinion on a post that you posted on Saturday, concerning EDF and Accenture. There were certain figures within that report. There was an overall value and there were 2 figures for smart meters. One of 5 million smart meters and one for 100,000 smart meters.

The overall value of the contract is stated at $70 million.

I commented:- " Is it $70 million for 5 million meters - $14 per meter. Or is it $70 million for 100,000 meters - $700 per meter."

I also mentioned that the smart meter price calculated, according to the report from April 19th, 2021, " ...... covers the design of the advanced metering infrastructure ( AMI ), the installation of the smart meters, their integration with the existing billing system of the electricity distribution companies and operation and maintenance of the system for a period of six and half years."

So there is quite a substantial amount ( value ) to be considered for the other elements/contributions of the contract, as well as the smart meter contribution.

If you have any other alternatives, using the figures that are in the report, I am willing to listen.

I also mentioned in my post at 14:39 today, that " ..... it depends on the way you interpret the information provided." I have given my opinion on what the two scenarios figures may come in at, with the figures we have been given. But all the elements within the report, do not have individual values. Only an overall contract value, with two meter quantities - 5 million and 100,000.

LTI.

Good afternoon all.

I had seen this report, just after it was published, but could not make up my mind on the information provided. Which in one way, is a good thing. But it depends on which way you interpret the information provided.

Is it $70 million, for 5 million meters - $14 per meter. Or is it $70 million for 100,000 meters - $700 per meter.

http://smart-energy.com/industry-sectors/smart-meters/edf-hits-100000-smart-meter-rollout-milestone-in-india/

From the report:-

" The $70 million contract with the Ministry of Power administered Energy Efficiency Services Ltd ( EESL ) covers the design of the advanced metering infrastructure ( AMI ), the installation of smart meters, their integration with the existing billing system of the electricity distribution companies and operation and maintenance of the system for a period of six and half years."

If it is the $14 per meter scenario - all in, ( for 5m meters ) I do not think you would get a truly " smart meter " including all the " inclusions " for that price.

On the other hand, if it is the $700 per meter scenario - all in, then that really opens up the market.

Also provided is some information on Bihar State, from February 4th, 2021, embedded in the 19th April, 2021 report.

http://smart-energy.com/industry-sectors/smart-meters/2-34-million-smart-prepaid-electricity-meters-for-indias-bihar-state/

If it is the $700 per meter, inclusive of add-on's scenario, then this would indeed suggest that there has been a radical rethink to include other solutions, other than just GPRS, as the early EESL reports, seemed to suggest.

Interesting times ahead.

And as we keep saying, time will eventually tell.

LTI.

No problem tonyj. Just thought I would pass on what might be some relevant information.

LTI.

Good evening tonyj,

In answer to your question on Thursday, at 14:44, about " ... why did they not use them for meters." I take it that you mean L&T. It has been my understanding for a few years now, that the L&T mentioned in connection with EESL projects, is L&T ( Construction ).

L&T ( Electrical & Automation ) which is connected with the manufacture and provision of smart meters, was purchased by Schneider Electric. The deal was completed last year.

http://energy.economictimes.indiatimes.com/news/power/lt-completes-divestment-of-electrical-automation-business-to-schneider-electric/77862473

L&T Smart World & Communication, mentioned in the Trilliant report, dated September 4th, 2019, seems to be a subsidiary of L&T ( Construction.)

The web address does not seem to work directly, at the moment, for some reason. But if you type-in:- Larsen&Toubro - Smart World & Communication, it should direct you to the details given for the company. They seem to be into creating a smart infrastructure for city surveillance, intelligent traffic management systems, transport and logistics, communications network, telecom infrastructure, smart grids, smart governance & education and smart city development.

LTI.

Good afternoon tonyj and all,

In reply to your 12:05 post, it is also the same Saurabh Kumar who has presented with Brian Spear, of Trilliant, about the worlds fastest one million smart meter deployment, in India.

So maybe both Companies provide something different for EESL. And as far as EESL is concerned, with the inclusion of CyanConnode, the Middle East and Africa are convenient regions to start.

LTI.

Good afternoon all,

A very tight spread was achieved during today. One of the tightest I have seen for some time. Possibly some of the trades are not as they are reported.

LTI.

Sorry, should read:-

http://nsgm.gov.in/sites/default/files/SG-Projects-Status-March-2021.pdf

LTI.

....... it would seem, are covering smart meter installation projects, that include a CyanConnode project, also. The JVVNL (2) ongoing project, mentioned in the Trading Update - December 2020, ( RNS 14th January, 2021 ) seems to be mentioned in the NSGM Smart Grid Projects - March 2021.

http://nsgm.gov.in/sites/default/files/SG-Projects-Status-March-2021.pdf/

So the NSGM are covering RF projects, as well as other, different solution projects.

LTI.

Good evening tonyj,

Yes, certainly. And it will be interesting to find out eventually, if CyanConnode are going to be involved in an advisory/technical capacity, project wise, as well as for their RF expertise. I seem to remember during the early Indian pilots/projects, they provided a certain amount of training, for various operatives, to help the project along. And I think they were lead on one of the early projects, in India. But I cannot be sure.

CyanConnode seem to have won this Partnership with EESL, on merit, by proving that they can successfully work with multiple meter manufacturers, as well as providing a satisfactory and globally credible RF solution, proven in many different markets.

So we will have to see how the relationship develops, with EESL.

But no time scales.

LTI.

...... EESL " ...... are pleased to partner with CyanConnode, a world leader in Narrowband Radio Frequency ( RF ) Smart Mesh Networks, in the Middle East, for smart metering and smart lighting projects. Utilizing CyanConnode's market leading RF Mesh Technology, we aim to implement innovative large-scale energy projects in the Middle East and African markets."

http://linkedin.com/feed/update/urn:li:activity:6789190036488278017/

Very interesting that they have recognized the CyanConnode Partnership on the EESL LinkedIn page.

LTI.

CB,

I do not know what tonyj's " .... investing method .... " is. That is personal to him.

As is mine.

LTI.