One Technology Stock with Long-Term Growth Prospects

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One Technology Stock with Long-Term Growth Prospects

 One Technology Stock with Long-Term Growth Prospects
Image source: Rymden, Shutterstock.com

As the market players are aware, the global economy was significantly impacted by the outbreak of the COVID-19 pandemic. The impact was also visible in the stock market. However, now some companies could be in a position to deliver decent performance. This company functions in the fast-growing digital trade segment of the TradeTech market. Also, this company is better placed to capture market share by way of its unique digital abilities. It would also be achieving this with the help of high brand awareness, and partnerships throughout the supply chain ecosystem. The stock price of this company encountered an increase of ~20.48% in the time span of one month.

TradeWindow Holdings Limited

Summary

  • The report titled “Digital Trade is the way forward for New Zealand” from NZIER was commissioned by the company to measure the potential economic advantages from higher usage of digital trade.
  • The study revealed an additional value of NZ$9-18 billion could be unlocked over a duration of 10 years. This will be achieved by full adoption of digital trade among New Zealand and its APEC trading partners.
  • TWL acquired 5 businesses as well as could acquire more businesses moving forward in order to accelerate growth. The company may issue shares as consideration as a result of the future acquisitions.
  • TWL has recently declared the collaboration with Mastercard.  

TradeWindow Holdings Limited (NZX: TWL) is an early-stage software company. It is involved in offering digital solutions for the exporters, importers, freight forwarders, as well as customs brokers. This would be assisting in driving productivity, as well as increasing connectivity, and visibility. TWL caters to major organisations across diverse sectors viz: the dairy, meat, horticulture, seafood, consumer products, manufacturing, and logistics.

Results for Year Ended 31st March 2021

  • Trading revenue increased to $1.6 million and mainly signifies a full twelve months of Prodoc and IVSOL revenue from existing customers and the start of incremental income from new customers.
  • The operating expenditure rose to $9.3 Mn because of the full twelve-month period as well as higher investment in the Product and Commercialisation teams
  • Its other income includes R&D grants of $0.4 Mn as well as a COVID-19 wage subsidy of $0.3 Mn.
  • The company has raised $15.0 Mn of new equity from existing as well as new shareholders since 31st March 2021.

Key Financial Numbers

Source: Company Reports, Analysis by Kalkine Group

Recent Update

  • The company, on 21 January 2022, mentioned that it partnered with Mastercard in order to enhance trust across the supply chain. Further, the collaboration is aimed at increasing cash flow for Australasian businesses via integrated cross-border payments solutions. To address the challenges being faced by the companies and mainly SMEs that have inadequate access to digital services as well as finding it difficult to do international trade, time-consuming and costly, the company has combined Mastercard’s payment network and technology with their digital trade platform ‘Cube’.
  • In the press release dated 13 December 2021, the company mentioned that a new report from the New Zealand Institute of Economic Research (NZIER) revealed the potential of the digital trade solutions. These solutions could drive the fundamental changes in the supply chain as well as could unlock economic advantages with respect to a key trade agreement for each country pairing that adopts the digital trade.

Stock Information

As per World Trade Organisation’s estimates, the digital trade solutions alone could aid in reducing the trade costs by 14.3%. Notably, this could also enhance global trade by up to US$1 trillion per year.

As per the management, TWL is well-placed to capture the market share via the unique digital abilities. It will also achieve this through high brand awareness, and partnerships across the supply chain ecosystem. The company plans to fast-track market penetration in Australasia by boosting sales and marketing capabilities through further investments.

Apart from Australasia, TWL aims to set up a presence initially in Asia, subsequently by South America. This will be done through a capital-light expansion model.

Due to an early-stage software business, the company assumes to raise capital in the future to finance acquisitions, expansion as well as general operating expenses. TWL happens to be an emerging player in US$2.8 trillion TradeTech market that offers $309.5 Bn of whitespace for the digital trade solutions throughout Australasia, Asia as well as South America.

The stock of the company ended the session at NZ$2.470 per share, a fall of 0.40% on 28th January 2022.

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