Beam Communications Holdings Limited (ASX: BCC) is working in the communications space, with the focus on the manufacturing of satellite communication equipment. It is striving to provide better and enhanced communication for people and companies that work in a remote area or hostile zone around the globe.
On 19th March 2019, the company released its investors' presentation. In the presentation, the company mentioned its extensive network of Tier-1 satellite distribution partner in many countries across the globe. Some of the company’s distribution partners are Iridium, Inmarsat, Thuraya etc.
According to Euroconsult forecast, there is a huge growth potential for global satellite mobile phone and data devices, which have a potential to grow around 11% CAGR between 2016 – 2026 period, with a total number of units reaching 10 million by 2026. The biggest growth is expected to come from IoT/M2M applications, that require always-on low data bandwidth with the fastest growing region being the Asia Pacific.
Best opportunities for the IoT/M2M applications are in scanning and cold chain management in the supply chain. Connected cars can use Telematics, advanced diagnostics and over the air updating. Oil and gas sector can also use the applications for tracking, Geological sensors, security etc. On a lower scale, it can also help in Irrigation control and animal tracking in the agriculture sector. The company would first target the supply chain and connected cars for the IoT/M2M applications.
The company has already developed the world’s first dual-band hotspot device in 2018, which is most relevant to applications that require always-on data connections. The emergence of 5G would help the company to find further opportunities and develop new products.
The company considers Iridium as a huge opportunity for them. It secured a development agreement way back in 2012 to design and manufacture Iridium GO devices. The company has completed the total orders of 40,000, over the past five years with first order being shipped in FY14. Also, BCC received its 6th order in February 2019. Further orders are anticipated with increased demand amid Iridium’s successful satellite network upgrade.
BCC is also working with Thuraya which is a global satellite operator based in UAE. BCC had developed the world’s first dual-band hotspot for Thuraya, called Thuraya WE. BCC has already completed its first order of 3,000 units worth $4.3 million in December 2018, with further anticipated orders coming in FY20. Currently, Thuraya WE had been launched in the Middle East and Europe, and it is soon to be launched in China.
The company posted EBITDA of $1.54 million in 1HFY19 compared to the previously reported number of negative $607,000 in 1HFY18. It is expecting to return to profit side in FY19, after two years of losses. Its 2HFY19 forecast is expected to be at least, as good as 2HFY18 but is unlikely to beat the record 1HFY19.
On the technical front, the stock surged up by a massive 41.176% on ASX and closed at A$0.24, by the end of the trading session, as on 19th March 2019 compared to the previous day’s closing of A$0.17. In the last six months, the stock has already given a rally of more than 41% and today’s equivalent surge on ASX would double the last six-months return.
This website is a service of Kalkine Media Pty. Ltd. A.C.N. 629 651 672. The website has been prepared for informational purposes only and is not intended to be used as a complete source of information on any particular company. Kalkine Media does not in any way endorse or recommend individuals, products or services that may be discussed on this site. Our publications are NOT a solicitation or recommendation to buy, sell or hold. We are neither licensed nor qualified to provide investment advice.
There is no investor left unperturbed with the ongoing trade conflicts between US-China and the devastating bushfire in Australia.
Are you wondering if the year 2020 might not have taken the right start? Dividend stocks could be the answer to that question.
As interest rates in Australia are already at record low levels, find out which dividend stocks are viewed as the most attractive investment opportunity in the current scenario in our report.