(Asx: VR1) | Vection Technologies

Dec 5, 2021

Sentiment: Bullish

Type of Trade: High Growth

Industry: Metaverse

Sector: Information Technology

Vection Technologies Ltd is a software company that focuses on real-time technologies for industrial companies’ digital transformation, Through a combination of 3D, Virtual Reality, Augmented Reality, Industrial IoT, and CAD solutions. It operates in two segments namely Information Technology (IT) development division and Outsource service.

We have seen a lots talk about metaverse lead by Facebook integrating all its social media platform.

What is Metaverse?

The metaverse is a hypothesized iteration of the internet, supporting persistent online 3-D virtual environments through conventional personal computing, as well as virtual and augmented reality headsets. Metaverses, in some limited form, are already present on platforms like VRChat or video games like Second Life. 

There are a lot of controversy regarding the metaverse adoption, fears that it could fracture the world as we know it, letting people “reality block” thing they disagree with and making polarization even worse. The question is, is it not already happening with Social media anyway?

The applicability is immense and should not only be considered in the social interaction point of view. We may see this technology emerging in the healthcare system. doctors operating patients from distance.

  • The so-called metaverse could give us our own virtual echo chambers and tailored realities.
  • Advertisers and third parties could inject someone’s virtual world with ads and overlays unique to them.
  • Experts told Insider the result could be a fractured reality where we all exist in different worlds.

Vection Technologies is currently present in various type of application in many different industries. While some big companies such as Facebook and Samsung for example are working and developing metaverse technology for social interaction experience, Vection Technologies is developing their metaverse technology for enterprise space working together with specific companies that are investing on this technlogy.

Key Benefits of the Technology.

Cost safe, safety and opportunity to increase sales for a broader audience.

  • Real Estate – Use of metaverse technology to cut cost on display home.
  • Architect – visualise the building before the building is built in order to identify some design issue.
  • Components and parts Manufactories – the manufacturer is able to identify any design issue before putting into production.
  • Healthcare – becoming more efficient how Doctors can ensure the safety of patients.
  • Fashioning Industry – Save cost by identifying and visualising the product before it is built.
  • Defence Industry – Identify issue when designing some vessel or aircraft.
  • Automotive Sector – Visualisation.

Fundamental Aspects

The company has grown quite quickly over the last 3 years with now over 100 employees globally and 9 offices in different countries with strong goal of doubling its revenue YoY.

Although the cumulative receipts “revenue” has doubled the actual FY2021 revenue was up by 10% which could potentially reflect in a much higher growth for 2022.

🚩 As any growth stock, despite the increase YoY revenue, companies like VR1, consumes a lots of money, and potential interest rates spike can hurt the company’s margin, we have seen it all across BNPL and some other Tech stocks.

Key Growth Prospect

  • Revenue Acceleration – Management’s goal is to double yearly revenue underpnned by core XR platforms upselling and increasing TCV and ACV metrics (supported by $4M TCV at August 2021)
  • International Expansion – A significant international opportunity underpins Vection’s strategy in FY22 supported by strong direct market presence.
  • Further Strategic Acquisitions – Targeting a combination of scale, sales team, integrated technologies and geoprahical expantion
  • Scalable XR Technology – Solid XR technology platforms and business applications able to replacated across diversified industries and geographies.
  • Market Trends – Increasing accessibility of smartphone, applications and weables and pandemic considerations are just some of the trends underpinning a fast-growing global XR market projected to reach $463.7 billion by 2026 (says the company).

Technical Analysis

If you have invested in VR1 exactly 12 months ago, the stock (SP) would have appreciated 45% in value. However, we saw some pretty significant spike on SP during November which the stock has gone up over 200% followed by a massive 45% drop. This stock price movement enforces the importance of using a strategy to buy and sell at the correct times as we saw many traders or unexperienced investors buying at the highs where SP was trading at the FOMO area.

SP is still trading 19% above the SMA which is technically in FOMO area.

Entry details – When to buy and what is the target? (Restricted area for VIP Members)

:

:

:

:

The information provided by BG Trading to you does not constitute personal financial product advice. The information provided is of a general nature only and does not take into account your individual objectives, financial situation or needs. It should not be used, relied upon, or treated as a substitute for specific professional advice. BG trading recommends that you obtain your own independent professional advice before making any decision in relation to your particular requirements or circumstances. Past performance of any product discussed is not indicative of future performance. (We urge that caution should be exercised in assessing past performance. All financial products are subject to market forces and unpredictable events that may adversely affect their future performance).