CyanConnode: 1H’22 update – strong shipments and cash inflows

Alongside the multiple new contracts signed in fiscal 1H, CyanConnode Holdings plc (LON:CYAN) smart meter intelligent module shipments continued to accelerate during the period. 315,000 modules were shipped, versus 92,000 in the same period last year and 481,000 for the entirety of FY’21. 1H’22 revenue came in at £4.1m, almost three times the comparative 1H’21 figure of £1.5m. The potentially immense market opportunity is starting to translate into large orders, accelerating shipment volumes, exceptionally strong revenue growth and cash inflows – £3.8m was received from customers during the period, resulting in £1.7m net cash at end-September 2021. Our updated DCF-implied fair equity value for CyanConnode is £89.6m.

  • On track to meet FY’22 estimates: Together with new contracts, the 1H’22 outturn supports our financial projections for FY’22 and beyond. We expect revenue to triple over 2021-23, accompanied by a strong move into profitability in FY’23. Larger contracts and opex-centric deals will create growing visibility.
  • Acceleration in module shipments: 315,000 Omnimesh modules were shipped during the period, across gateways and relating to current contracts, a marked uplift of over 200% versus 1H’21. Contracts for almost 300,000 modules have been signed since the year-end. Revenue recognition across these contracts will vary.
  • Indian opportunity remains front and centre: Acknowledging the sluggish pace of smart meter installations, the Indian government is implementing multiple measures to compel faster progress. These include financial incentives and proposed legislation that will allow private distribution companies to enter the market.
  • CyanConnode is well-positioned in India: Major factors include the depth and scalability of the technology platform, the neutrality of the Omnimesh platform with respect to meter manufacturers, the reference deployments in India, partnerships with key entities, and the quality and experience of management.
  • Investment summary: Our revenue estimate for FY’22 (to end-March) of £9.3m continues to be based largely on existing contracts. CyanConnode remains in discussions for new contracts in several existing and new markets. The company has continued to manage its supply chain deftly, and replenishments have been uninterrupted. Our DCF-implied equity fair value is £89.6m (£0.41 per share), versus the current market capitalisation of £26.2m.

DOWNLOAD THE FULL REPORT

Click to view all articles for the EPIC:
Or click to view the full company profile:
Facebook
Twitter
LinkedIn
Hardman & Co

More articles like this

CyanConnode Holdings plc

India’s decade of power transformation

In a significant stride towards transforming the power sector, the Ministry of Power’s year-end review for 2023 revealed impressive advancements. Over the past nine years, the government has successfully shifted from a power-deficient to a power-sufficient

CyanConnode Holdings plc

What is a smart meter and how does it work?

A smart meter, or an ‘advanced meter’, is a digital device that uses two-way communication to measure how much electricity you use and when. It records your energy usage in at least 30-minute intervals and then

CyanConnode Holdings plc

CyanConnode Holdings experiencing a Period of Rapid Growth

CyanConnode Holdings plc (LON:CYAN), a world leader in narrowband radio frequency (RF) mesh networks, has announced its unaudited interim results for the six months ended 30 September 2023 (H1 FY 2024). John Cronin, CyanConnode Executive Chairman,

CyanConnode Holdings plc

Edge-Cloud IoT: A strategic response to power grid challenges

IoT technology offers a transformative solution to these challenges. By embedding sensors and smart devices throughout the power grid, IoT enables real-time monitoring and control of the power distribution network. Rising to the challenge, Huawei, in

CyanConnode Holdings plc

IntelliSmart installing 20 million smart meters in India

Indian state smart meter JV Intellismart has reported currently installing smart meters for approximately 20 million households. The smart metering rollout portfolio, with a value of R200 billion (US$2.4 billion), has been boosted by awards in

CyanConnode Holdings plc

Everything you need to know about Smart Meters

A smart meter is an upgraded version of traditional gas and electricity meters. Unlike regular meters, smart meters don’t require manual tracking of readings. They offer a more convenient and efficient way to monitor your energy

CyanConnode Holdings plc

India’s meter projects make massive IoT a reality

With a population of more than 1.4 billion, India has seen energy consumption more than double since 2000, according the to the International Energy Agency. This leaves energy providers and users of all types seeking to

CyanConnode Holdings plc

In conversation with CEO Ratna Garapati

How would you describe the journey of your company since its inception? Since 2012, CyanConnode has contributed significantly to India’s smart metering sector, this ramped up even more since establishing the company in India in 2015.

CyanConnode Holdings plc

CyanConnode ranked 2nd fastest-growing UK company in India

CyanConnode Holdings plc (LON:CYAN), a global leader in Narrowband Radio Frequency (RF) Smart Mesh Networks, has announced that its Indian subsidiary, CyanConnode Pvt Ltd, has been recognised as the second fastest-growing UK company in India, according to

CyanConnode Holdings plc

Smart prepaid meters a step towards empowering consumers

The history of energy metering has been one of constant evolution, marked by technological advancements. From the early days of analog and electro-mechanical meters, we progressed to electronic static-type digital meters, which were introduced around two

CyanConnode Holdings plc

Why DISCOMs need a smart meter revolution

A smart meter revolution is the need of the hour to revolutionise the energy landscape of India and achieve the goal of energy efficiency. The government of India launched an ambitious plan to replace 250 million

CyanConnode Holdings plc

Smart meters: The foundation for global energy transition

The urgency to address environmental concerns plays a crucial role in the development and adoption of smart meters. Approximately 30 percent of greenhouse gas emissions result from the production of heat and electricity using fossil fuels.

CyanConnode Holdings plc

Smart meters are advancing the energy revolution

A smart meter is an electronic device that measures and records the consumption of electricity, gas, or water in a home or business. Smart meters can transmit this data to utility companies in real-time, allowing them