ASX:ACE
Acusensus Ltd
Investment Summary
The fund managers believe that Acusensus Ltd. represents a promising investment opportunity due to its increasing presence in international markets. They note the company has successfully operated in Australia and is expanding into the US, UK, and Europe, with forecast revenues in FY24 of $50m. Following a strong 1H24 result, the stock faced volatility after an unexpected loss of a contract in the Netherlands, but the fund managers remain optimistic about its future success. In their opinion, the announcement of significant contracts in New Zealand and Queensland has strengthened Acusensus's position, underscored by the recent 20% rise in share price to approximately $1.11. With a modest market cap of $150m and a healthy cash balance, they feel investors have not fully recognized the company’s potential. As of January 2025, the company’s upward trajectory continued with recent contract wins and improving revenues, leading the fund managers to suggest that current expectations for FY25 may be overly conservative.
Commentary From The Managers
Cyan Investment Management
31 Jan 2025
$1.23
- Acusensus Ltd. has seen significant market movement, with shares increasing by 11% following recent contract wins.
- Cyan Investment Management notes that the market is starting to digest these large contract agreements.
- The recent Quarterly Update from Acusensus reported steadily improving revenues.
- Further contract wins were announced, which had not been previously disclosed.
- Although Acusensus has yet to officially upgrade its FY25 guidance, current market expectations appear to be very conservative.
- Cyan Investment Management continues to hold a positive view based on the recent developments surrounding Acusensus.
Cyan Investment Management
31 Dec 2024
$1.11
- Cyan Investment Management is optimistic about Acusensus Ltd's recent achievements.
- The company secured a nationwide speed camera supplier agreement in New Zealand valued at nearly NZ$100m.
- Additionally, Acusensus expanded its existing mobile phone and seatbelt contract in QLD worth A$27m.
- To finance these contracts, Acusensus raised A$10m through an Institutional Placement at $0.90, with participation from Cyan C3G Fund.
- The company also completed an additional A$2m in an SPP.
- Despite a 20% increase in stock price to $1.11, Cyan Investment Management notes that market reactions could be stronger given the company's modest $150m market cap and a net cash balance of approximately $30m.
Cyan Investment Management
29 Feb 2024
$0.82
- Acusensus Ltd (ACE) specializes in smart traffic camera technology, focusing on detecting and capturing evidence related to speeding, seatbelt non-compliance, and mobile phone use.
- The company has seen strong success in the Australian market and is actively expanding into international markets including the US, UK, and Europe.
- Forecast revenues for FY24 are projected at $50 million, indicating significant growth potential.
- A strong 1H24 result was positively received by the market, leading to a stock increase of 37% at one point.
- A recent disappointment occurred with a failed contract in the Netherlands, which surprised the market and led to a reduction in stock value.
- Despite recent setbacks, Cyan Investment Management believes that Acusensus will achieve significant success in offshore markets and remains committed to maintaining their investment position.
Please note: The completeness, accuracy or current status of the investments referenced are not guaranteed.