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Sensen Networks’ technology works and has blue-chip support: BW Equities

Smart City video camera networks across the globe could one day run on SenSen’s inexpensive smartphone based Gemineye solution.

SenSen Networks Ltd - Sensen Networks’ technology works and has blue-chip support: BW Equities
BW Equities has a buy rating for SenSen with a price target of 19 cents per share

SenSen Networks Ltd’s (ASX:SNS) key asset is the SenDISA platform, an Internet of Things technology.

The platform underpins SenSen’s lead product SenFORCE, a mobile parking enforcement unit technology that uses video to provide a visual overview of publicly-accessed areas such as car parks.

Another SenDISA product is the Gemineye product, which can slash the cost of smart cities technology by drawing on the power of smartphones.

BW Equities has a buy rating for SenSen with a price target of 19 cents per share (current share price: 9.2 cents).

Following is an extract from BW’s report:

Product strengths

  • The technology works and has blue-chip support (Crown, Transurban, BCC)
  • Versatile across industries (transport, gaming, tolling) and use cases (dumping, scooters)
  • Thematic: Replacing outdated technology (ie. RFID) with video AI
  • Efficacy: SNS has never lost a client, typically improves penetration (Bris, Calgary)

The timing is right

  • Headline performance has been underwhelming, although…
  • …ARR growth was ~150% in FY19
  • …And just a single contract will significantly move the needle

Near-term catalysts

  • ITS – First Vic/NSW clients + major US city trials underway (~$5m contracts)
  • Retail (Gaming) – 5 POC’s live, 17 active opportunities
  • Gemineye – First orders have now been placed ▪ Toll Roads – Expansion of the Transurban trials – potentially $8m/year?

Estimates & Valuation

  • FY20 revenue growth = ~170% (ARR +110%)
  • EBITDA +ve from 2H20
  • Valuation is deceptively full @ ~11x revenues (28x ARR)

Quick facts: SenSen Networks Ltd

Price: 0.091 AUD

ASX:SNS
Market: ASX
Market Cap: $38.38 m
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SenSen Networks aims to disrupt expensive approach to smart cities

SenSen Networks Ltd (ASX:SNS) chief executive officer Subhash Challa speaks to Proactive Investors abouts its new Gemineye product, which can slash the cost of smart cities by harnessing the power of smartphones.   While most smart city technology to date has required expensive...

on 30/4/19

2 min read