Frontier Smart Technologies has announced its selection by KOHLER, a global leader in kitchen and bathroom products, to help launch its new Verdera Voice Smart Mirror with integrated Google Assistant. Whilst not expected to deliver material unit quantum as a niche, high-end product, the announcement represents a potentially significant milestone in successfully broadening Frontier’s revenue base into non-audio IoT. Frontier Smart trades on <0.4x FY’19 EV/Sales, which materially undervalues the strong core DAB business and Smart IP in our view. With the product launching in Q4 19, this announcement has limited impact on our forecasts and we leave our FY’19E numbers unchanged.
