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poLight reported some progress on its customer projects, without these moving the needle. EBIT in Q3 was impacted by a positive one-off gain related to VAT, which should not impact forward figures. While the company has high potential reward if it is able to secure new design wins in 2021, the risk also remains high with the investment case remaining binary. As such, and also with low visibility regarding progress on projects, we maintain our Hold rating.
Companies: poLight ASA
Arctic Securities
Q3 figures of minor importance as it mainly reflects testing, dev. kits etc. Compared to Q2, poLight has 1 new consumer project in project phase …maintains the industrial project customer, and in discussion with others Sufficient cash position into 2022
In its Q2 report, poLight reported some progress for projects within the industrial and consumer segment. We view the wearable segment, AR and barcode projects as having the highest likelihood of new design wins following its reference designs. We maintain our Hold rating as poLight’s investment case remains binary and dependent on securing additional design wins. The visibility on this is also low.
Q2 figures broadly in-line with estimates, but of minor importance Compared to Q1, poLight has 1 new project in completed PoC phase …and highlights discussions on AR and smartphone projects Sufficient cash position into 2022 post the share issue
As expected: poLight announced purchase order for the barcode product The barcode customer was announced on March 5th Already included in estimates and has no impact on our investment case Hold rating maintained as poLight remains a binary investment case
poLight announced some progress for projects in the consumer segment in its Q1 report. Within this segment, we view the wearable segment as having the highest likelihood of potential new design wins, following its recent smartwatch reference designs. The investment case remains binary and depends on whether poLight is able to secure additional design wins. As such, and with low visibility, we maintain our Hold rating.
Q1 figures broadly in-line with estimates, but of minor importance Compared to Q4, poLight has 2 new projects in completed PoC phase …and discussions on smartwatch, AR and smartphone projects Sufficient cash position post the private placement in April
poLight announced an order from the Barcode customer in EVT phase Subject to successful testing, this could lead to a design win in Q2 / Q3 Design win from this barcode customer is included in our estimates We believe poLight needs to strengthen its balance sheet from Q1 2021
Additional purchase order related to smartwatch design-wins received In-line with expectations, but positive following COVID-19 uncertainties Next catalysts could be a small barcode design win around mid-2020 poLight has sufficient cash until Q1 2021 on our estimates
poLight’s Q4 results were broadly in-line with expectations. We view the two smartwatch design wins during Q4 as important reference designs for potential larger design wins in wearables. These, and a potential small barcode design win in mid-2020, are likely to have a minor positive impact on estimates. We maintain our Hold rating and increase our target price to NOK 70 (45) following changes to estimates and applied multiple from lower commercial risk.
Q4 figures slightly ahead of estimates, but of minor importance Compared to Q3, poLight shows some progress on customers projects …with 6 more PoC phase projects. The barcode customer in EVT remains. poLight has sufficient cash until Q1/21
Second smartwatch phone design win for children launched with poLight Named XUN Smartwatch Pro (Chinese technology company) The contracts increases likelihood for new design wins in wearables Likely small positive impact on estimates
Research Tree provides access to ongoing research coverage, media content and regulatory news on poLight ASA. We currently have 2 research reports from 1 professional analysts.
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