Last close As at 05/08/2026
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Research: TMT
Vection Technologies (VR1) recently announced that its ChatGPT-powered mixed reality solution, 3D Frame, will now be available on Apple’s macOS. The release further highlights the interoperability of VR1’s technology with global powerhouses in the virtual (VR) and augmented (AR) reality space, positioning it well to capitalise on the latest breakthrough advancements, such as Apple’s Vision Pro AR headset. 3D Frame’s cross-platform compatibility with Windows and macOS should ensure wider availability across devices and reaffirms VR1’s position as a major player in the field. Management also announced the proposed acquisition of Invrsion, which it expects to be immediately earnings accretive and brings with it a portfolio of tier 1 customers, including Walgreens, Coca-Cola and Diageo.
Written by
Vection Technologies |
Apple and AI integrations plus latest acquisition |
Recent newsflow |
TMT |
8 June 2023 |
Share price performance
Business description
Analysts
Vection Technologies is a research client of Edison Investment Research Limited |
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Vection Technologies (VR1) recently announced that its ChatGPT-powered mixed reality solution, 3D Frame, will now be available on Apple’s macOS. The release further highlights the interoperability of VR1’s technology with global powerhouses in the virtual (VR) and augmented (AR) reality space, positioning it well to capitalise on the latest breakthrough advancements, such as Apple’s Vision Pro AR headset. 3D Frame’s cross-platform compatibility with Windows and macOS should ensure wider availability across devices and reaffirms VR1’s position as a major player in the field. Management also announced the proposed acquisition of Invrsion, which it expects to be immediately earnings accretive and brings with it a portfolio of tier 1 customers, including Walgreens, Coca-Cola and Diageo.
Year end |
Revenue (A$m) |
Adj EBITDA* (A$m) |
PBT** |
EPS** |
EV/sales |
P/sales |
Net cash*** (A$m) |
06/21 |
3.5 |
(0.4) |
(2.5) |
(0.27) |
11.6 |
14.0 |
2.2 |
06/22 |
18.9 |
0.9 |
(7.0) |
(0.67) |
2.1 |
2.6 |
10.8 |
06/23e |
26.1 |
3.7 |
(6.4) |
(0.59) |
1.5 |
1.9 |
11.5 |
Note: *Adjusted EBITDA is normalised, excluding non-cash payments, exceptional items and interest revenue. **PBT and EPS are normalised, excluding exceptional items and interest revenue. ***Includes debt, financial leases and term deposits.
On 6 June, VR1 announced the early release of its ChatGPT-power mixed reality solution, 3D Frame, on Apple’s macOS. In our previous note, we discussed how the integration of a ChatGPT-powered artificial intelligence (AI) assistant can enhance 3D Frame’s virtual training environments. VR1’s latest video demonstration further showcases these advancements and highlights the cross-platform capabilities of 3D Frame, including across Android, Windows, Apple and VR devices.
The interoperability of VR1’s technology with product leaders in the VR and AR landscape could allow it to access wider audiences. The latest partnership with Apple could also allow the company to capitalise on the latest technological advancements, such as Apple’s recently announced Vision Pro AR headset. Apple’s headset launch provides a strong indication of the transition of extended reality technologies from niche applications into the mainstream market.
On 7 June, VR1 announced its collaboration with Marotta’s aerospace engineers to develop the first civilian use hypersonic jet, involving the integration of 3D Frame into SolidWorks’ design suite to create a virtual training environment.
Management also announced the proposed acquisition of Invrsion, a 3D and mixed reality solutions provider in fashion, retail, consumer goods and real estate. The acquisition is expected to be immediately earnings accretive, with Invrsion delivering revenue of A$1.7m and positive EBITDA in FY22. Invrsion brings with it a strong client portfolio, including Walgreens, Ferrero, Nestlé, Coca-Cola and Diageo.
The acquisition will have an all performance-based consideration with a A$0.1 floor share price, vesting after 30 June 2026. To fund the acquisition, the company has proposed the issue of 62m performance rights at an estimated value of A$2.67m (ceiling of c A$6m). The performance rights will convert into fully paid ordinary shares following the achievement of certain revenue milestones.
We will revise our estimates following VR1’s Q423 trading update in July.
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Research: Industrials
The quality of Severfield’s revenues is materially underappreciated by the market in our view, especially now that the UK and EU are embarking on huge investment programmes to renew and upgrade infrastructure to address global trends, such as the drive for net zero emissions. The reorganisation of the group, the internal improvement project (Project Horizon) and the EPS-enhancing M&A deal are not fully reflected in the FY24e P/E rating of c 7.0x, which is comfortably below the long-term average of 10.0x. Our positive stance is supported by the company’s strong balance sheet, progressive dividend and yield of over 5%.