Utilico Insights - Jacqueline Broers assesses why Vietnam could be the darling of Asia for investors. Watch the full video here.
https://stifel2.bluematrix.com/sellside/MAR.action?tickerList=4810
Seeing Machines has released a trading update for the six months ended 31 December 2021. It expects to report revenue for H1/22 of A$21.7m (H1/21: A$18.1m), representing a 19.4% increase YoY and an underlying growth rate of 24.6%. Total connected Guardian units at 31 December 2021 was 36,933, securing forward Annualised Recurring Revenues including royalties of A$18.8m (H1/21: A$15.5m). Connections are running behind that forecast in our model. However, the ARR at 31 December implies at least A$9.4m of recurring revenues are already secured for H2/FY22, which is 21% ahead of last year and, when combined with the usual seasonality in the business, we believe this implies the division is still on track for a strong year with revenue growth over 25%. Seeing Machines notes there are now over nine OEM vehicle models past start of production and more than 250,000 cars on roads featuring the Company’s technology. OEM units now seem to be running well ahead of our expectations, which are based on 320k cars in FY22. The Company expects a further 30 distinct vehicle models, featuring Seeing Machines technology, to launch by early 2023. The company’s CEO, Paul McGlone notes that “we are extremely confident of more progress in the second half of the financial year and I am looking forward to more expansion, into more geographical markets, to maximise our growth aspirations and return value to our shareholders as we deliver against market expectations.”
Comment: This is a solid trading update from Seeing Machines which, in our view, demonstrates the company is on track to meet FY22 revenue growth expectations of over 20%. Looking at the divisions, it seems like a strong performance in OEM is offsetting a slow start to aftermarket connections for the year. We believe this is due to sales running ahead of expectations as the financial period covers the holiday season where fleet utilisations are high, and it is therefore challenging to get time to connect Guardian units. The continued pandemic is also likely to be continuing to affect sales activities in Europe which are particularly focused on public transport. These two effects are likely to reduce in H2/FY22E and, combined with the usual seasonality in the business, we see no reason to adjust our aftermarket expectations.
With the company well financed, OEM and Retrofit markets both benefitting from strong regulatory backed demand and limited competition, and Aviation likely to start to make a meaningful contribution following collaborations announced with Collins Aerospace and Airservices Australia, we continue to see significant upside to our 19.5p valuation and iterate our Buy recommendation.
The TU doesn't differ from the prospect when Magna bought in big at 11p. I'm with Magna on this. They actually do big business with SEE. Their opinion is informed. The small disposals in an illiquid market may move the price - but so what. Surely investors are here for the business not the market's take. Magna are here for the business. So am I.
Those who talk about what the market thinks are missing the point - what do you think since it is your money?!
This is a hockey stick situ - or its nothing. So it gently gathers some speed and then at some point it goes vertical. That is why long term investors are here: for the vertical take up of the tech / share price.
The nature of valuing a Co by its cash flows over a say 10 year period is that at some point the cash flows are foreseeable / certain enough for the discount rate to collapse and the share price to soar.
I think it is a great TU. The key thing is that the plan is happening and no supply chain etc issues. I expect strong newsflow over this year to begin the rerating of the shares
My point on Magna is really that it's shareholding barely excited any comments on here. Yet there are endless posts on the "market" [I guess that must the same market that has priced SEE at 1.5p as well as 13p within the last 2 years]
The Veoneer takeover began with Magna taking a stake before Qualcomm gazumped them. The Veoneer Arriva software incorporates SEE's tech.
Similarly the valuation of 11p by Magna is very important [to me anyway]
Magna must have done Due Diligence. Further they then signed off on a big contract with SEE. Given Magna's position in the Auto Industry they know the value of SEE's tech if anyone does.
At this point in the journey, where checking up on delivery of the plan is imo everything, what could be better assurance that SEE is on track than Magna's holding / contract - and the buy of Kate Hill?
Respect to all the negative views on here but anyone got any views on Hill's buy at 11.6p or Mana at 11p? I guess they must know a lot less about the business than the "market". Right?
Compare Tesla & Ford etc - both down a similar % to SEE. Hint, hint ....
If punters think this news merits a discount then they are suckers.
Yes the market is efficient. It prices in the fact that your Bank Manager falls asleep when you give him all the enticing facts about your new business because he can lend property mortgages like falling off the back of a log & therefore doesn't want to get involved. Similarly, all the information in the public domain is in the price - like all the books published can be read at the British Library - but who actually reads or could read all that info & put together the correct picture?
AIM is switched off to SEE's story but if this newsflow continues the market will respond soon enough & irrespective of the exit from non profit new tech stocks. The tide is going out & SEE are swimming with their trunks on [i.e. aggressively cashed up]
A lot of BS imo
Check out Kate Hill's buy at 11.6p. She also has a lot of experience in valuing businesses.
I trust Hill and her money. Not persuaded by all the lack of patience on the price. At this stage the only thing that matters is the business - which I think is executing on the plan
Head of GM’s autonomous driving unit to leave company
Claire Bushey in Chicago and Patrick McGee in San Francisco
General Motors said the head of its autonomous driving subsidiary, a business it is counting on to drive growth, will be leaving the company.
Dan Ammann, chief executive of Cruise, will be replaced on an interim basis at the Detroit automaker by Kyle Vogt, who is currently the unit’s president and chief technical officer. Vogt co-founded Cruise before GM acquired it in 2016.
Ammann, formerly president at GM, took the helm at the driverless car unit in 2018. He is credited with building the company from a scrappy start-up into one that rivals Waymo, Google’s self-driving spin-off.
Cruise earlier this year received $2bn in new funding from Microsoft, GM, Honda and others that gave it a valuation at the time of $30bn.
GM did not give a reason for the abrupt departure, but said on Thursday that as Ammann leaves it plans to “accelerate the strategy” the company laid out in October to double sales to $280bn by 2030 while increasing profit margins. Part of that plan involves adding $80bn in revenue from new businesses, including Cruise.
“It’s a bit of a gut punch?.?.?.?He was the power and the plan,” Wedbush analyst Dan Ives said of Ammann’s departure. “It’s a head-scratcher that he would leave at this juncture.”
Shares of GM were down almost 4 per cent in after-market trading.
https://www.investorschronicle.co.uk/ideas/2021/11/24/an-eye-opening-tech-opportunity/
Magna =
Due Diligence (Industry Expertise)
Confirmation of Product Excellence
Undoubted commitment to buying SEE's products
Parking a tank on Qualcomm's lawn [since SEE is key part of Arriva tech stack it bought with Veoneer takeover]