Vection Technologies (ASX: VR1)

Currency in AUD

Last close As at 25/03/2023

AUD0.04

0.00 (2.50%)

Market capitalisation

AUD45m

Vection Technologies (VR1), an Australia-based software company, operates in the field of extended reality (XR), which encompasses immersive technologies such as augmented reality, virtual reality and mixed reality.

VR1’s prospects are boosted by the two fast-growing markets it operates in. First is the rapidly evolving metaverse, which is swiftly adding users and potential customers for VR1’s products (Gartner predicts that by 2026, 25% of people will spend at least one hour per day in the metaverse). Second is the XR market, which is expected by various studies to grow by 46–58% in 2022–27, driven by the increased use of VR in education, first-person gaming, the adoption of XR tech in healthcare and the growing use of AI in XR apps.

Sector

TMT

Equity Analyst

Max Hayes

Max Hayes

Associate Analyst

Key Management

  • Gianmarco Biagi

    CEO

Balance Sheet

Forecast net cash (A$m)

2.9

Forecast gearing ratio (%)

N/A

Share Price Performance

Price Performance
% 1M 3M 12M
Actual (22.6) (25.5) (61.0)
Relative (19.2) (24.1) (58.7)
52 week high/low A$0.1/A$0.0

Financials

Vection Technologies (VR1) reported A$4.6m in Q223 receipts, up A$0.2m q-o-q. Recent announcements of the company’s selection to develop virtual reality (VR) and metaverse technologies to promote space travel underpin the vital role partnerships play in the company’s strategy. VR1 also reported progress in commercial opportunities in defence, aerospace and service agencies, among others, all expected to bear fruit in the latter half of the current fiscal year. As such, management reiterated its FY23 revenue guidance of A$24–26m. We are encouraged by the Q223 results and maintain our FY23 forecasts.

Y/E Dec Revenue (A$m) EBITDA (A$m) PBT (A$m) EPS (c) P/E (x) P/CF (x)
2021A 3.5 (0.4) (2.5) (0.27) N/A N/A
2022A 18.9 0.9 (7.0) (0.67) N/A N/A
2023E 26.1 3.7 1.3 0.08 78.8 N/A
2024E N/A N/A N/A N/A N/A N/A

Thematics

Digital Marketing and Internet Media Technology Platform

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MediaWatch – January 2023

Consumer

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