When Technology Fills The Gap – AKP, MOB, SVT and ESH

Technologies nowadays are changing the way we live and work. Technological innovations can add value across all parts of the economy and help businesses to develop new products, access new markets, work more efficiently and improve the bottom-line.

How is technology helping different sectors of the economy?

• Agriculture - Self-steering, GPS-guided tractors and other high-tech farming equipment have already become a normal part of farming;
• Manufacturing- From robotics and artificial intelligence to advanced modelling software and 3D printing, technology has become an important part of doing business;
• Mining - Mining companies embrace digital technologies to drive productivity and improve safety;
• Tourism- Digital technologies are increasingly used by both travel operators and consumers at all stages of the travel experience;
• Services- Advances in technology such as artificial intelligence, data, analytics, machine learning and robotics are driving competitiveness and productivity in services sector;
• Health- Healthcare professionals are using robotics to improve surgery outcomes; radiographers are using computers that are trained to recognise patterns in images to identify irregularities in scans.

Let us now look at few tech stocks that are trading on ASX.

Audio Pixels Holdings Limited (ASX: AKP)

Audio Pixels Holdings Limited (ASX: AKP) is involved in producing new generation of speakers with entirely new techniques. For quite some time, the company is working on transitioning a prototype technology into a design and fabrication process than can be reliably manufactured in mass volumes.

The company, along with its vendors, have been able to advance the fabrication process to the point where it can be anticipated that the MEMS wafers will consistently meet the underlying electromechanical requirement.

The company’s half yearly report released on 29 August 2019 indicated that particular fabrication steps of the MEMS wafers were being modified in order to diminish critical performance specifications on vendor fabrication tolerances.

Recently on 10^th October 2019, Audio Pixels Holdings provided a digital speaker development update in which it informed that despite the very best efforts of vendors, they were unable to meet delivery schedules which were originally anticipated prior to the High Holiday’s vacation season.

As per the announcement, most of the required modifications have already been implemented, and the test wafers is near completion. It is anticipated that the delivery of the test wafers will commence shortly after the High Holiday’s in Israel.

In the last six months, AKP’s project has declined by 13% as on 15 October 2019. At market close on 16 October, AKP’s stock was trading at $17.500 with a market cap of circa $492.45 million.

Mobilicom Limited (ASX: MOB)

Hi-tech company, Mobilicom Limited (ASX: MOB) uses an innovative approach to produce its products and technologies. Mobilicom has two business entities:

• Mobilicom’s core business entity, with solutions that cater to mission-critical communication in the Government and Enterprise sector with applications in unmanned platforms, disaster relief and public safety, and offshore and remote areas;
• SkyHopper business entity, an end-to-end equipment and solution provider, which targets the Commercial Drone & Robotics sector.

In an update provided on 10 October 2019, the company informed its breakthrough Commercial Drone Upgrade Solution has exceeded its goal of $1 million in orders in 2019, following a new repeat order exceeding $200,000.

The company is currently the sole provider of the Commercial Drone Upgrade Solution to the Israel MOD, and this new purchase order demonstrates a continued interest in the Mobilicom solution.

As per the 10^th October announcement, the commercial Drone Upgrade Solution is an after-market add on for drone units already sold within the market, and it was developed as a result of the US ban on the use of certain drones in security operations.

Mobilicom is able to support leading federal drone customers, including the Israel MOD, and has the ability to support other federal organisations worldwide, says Mobilicom’s CEO Oren Elkayam.

For half-year ended 30 June 2019, Mobilicom Limited reported revenues from ordinary activities of $1,768,118, up 24% on pcp.

Profit or loss Statement for Half year Period (Source: Company’s Report)

In the past six months, the company’ stock has decreased by 21.60% as on 15 October 2019. At market close on 16 October, MOB’ stock was trading at $1.00, up by 2.041% intraday, with a market cap of $24.28 million.

ServTech Global Holdings Limited (ASX: SVT)

Multinational software company ServTech Global Holdings Limited (ASX: SVT) operates on an Enterprise business model based and on a Software as a Service (SaaS) business model.

On 10 October 2019, the company announced the commercial launch of its immersive VR design platform “FrameS” across European markets, in November 2019 which will be underpinned by distribution partnerships with Altea Federation, Four Bytes and Infor, targeting over 6,700 clients including Gucci, Ferrari, Maserati, Duracell and Agusta Westland. The launch is also targeting the growing software product design & manufacturing industry.

As per the company’s announcement, the platform is going to target niche 3D Render and VR product design market which has over 10 mn subscribers of software such as Autodesk 3DS Max, Autodesk Maya, Autodesk VRed, Solidworks and others.

The Frames launch strategy includes:

• Appointing global distributors and partners with existing client portfolio;
• Introducing the software into recognised and reputable universities and technical schools to improve software adoption and recognition;
• Appointing key recognised clients as Software endorsers (brand ambassadors);
• European advertising campaigns targeted to specific market segments and users;
• High-quality trade and video material;
• Training of distributors’ sales force on the Platform (near-completion).

In the past six months, the company’ stock has decreased by 26.32% as on 15 October 2019. At market close on 16 October, SVT’s stock was trading at $0.015, up by 7.143% intraday, with a market cap of $9.2 million.

Esports Mogul Limited (ASX: ESH)

ASX listed esports media and software company Esports Mogul Limited (ASX: ESH) has been looking for ways to add value to the esports community groups and teams. The company recently announced that SG Esports has now joined hands with Mogul, demonstrating Mogul’s ability to attract tournament organisers, community groups, talent managers and other esports organisations.

SG Esports and Mogul intends to launch a Summoners’ Society Branded Hub which will then be used for all its weekly 1v1 and 5v5 tournaments and other events.

Recently, the company also struck a deal with Southeast Asian influencer talent agency Tier One Entertainment (Tier One) to launch a Branded Hub which will generate revenues from fan memberships and monthly subscriptions.

Major Highlights of Partnership Agreement

• Tier One to have their own Branded Hub for fan membership, monthly subscriptions and online tournaments;
• Mogul will become the exclusive platform provider for all Tier One and Tier One influencer and streamer talent online events;
• Tier One influencers have over 7.6 million followers on social media and over 62 million views on YouTube and Twitch;
• Mogul to retain 40% of revenue from monthly subscribers, memberships and user acquisition.

On year to date basis, the company’ stock has decreased by 25% as on 15 October 2019. At market close on 16 October, ESH’s stock was trading at $0.012 with a market cap of $19.57 million.

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