Global Invacom Group Ltd (SGX: QS9) is a fully integrated satellite equipment provider. The group has six manufacturing plants in China, Israel, Malaysia, the UK, and the US. Global Invacom provides a full range of antennas, fibre distribution equipment, and transmitters in satellite communications and is one of the world’s only designers and manufacturers of both electronics and antenna solutions. The group currently has 82 patents with another 38 pending approval.
The group has demonstrated double-digit growth in revenue, increasing from US$28.9 million to US$38.3 million for a 32% increase. Gross profit margin remains healthy at 20.3% for Q1 2019, but net profit was just US$741,000 due to higher levels of administrative expenses and also higher finance costs.
Global Invacom may be on the cusp of strong growth thanks to several recent business developments; let’s take a look at them.
In March, Global Invacom announced a partnership with Edgewater Wireless Systems Inc (CVE: YFI) for the further development of Broadcast WiFi, also known as Bx-WiFi. This technology enables live, high-quality, and large-scale event streaming over a WiFi network — for example, a rock concert or a major speech given in a large auditorium.
With more and more people attending live concerts around the world, the development and commercialisation of this technology holds good promise for Global Invacom, though the company has yet to announce concrete monetisation plans.
Acquisition of Apexsat Pte Ltd
In June, Global Invacom announced the acquisition of the assets and intellectual property from Apexsat Pte Ltd. This acquisition will broaden the group’s product suite and enable it to address the entire global market for different satellite communication products. The acquisition is expected to contribute positively to the financial performance of the group and cost the group EUR 250,000, which will be paid fully in cash.
Tony Taylor, executive chairman of Global Invacom, had this to say about the acquisition:
“We are delighted to be announcing a highly strategic acquisition which brings talent, expertise and knowhow into our business. This is an excellent example of how Global Invacom can continue to broaden its product base alongside securing valuable IP which we believe will underpin further product development. Furthermore, we believe that by integrating the Apexsat technology into Global Invacom, we will be able to upscale the existing Apexsat and Global Invacom customer base through the delivery of high quality, bespoke products.”
Next-gen video broadcasting system live tested over 5G
Rai Radiotelevisione Italiana (Rai), the Italian public broadcasting company, has successfully live-tested mobile TV broadcast over 5G. The Rai transmission system prototype was developed by the Technical University of Braunschweig in Germany, and when integrated with Global Invacom’s Bx-WiFi technology, it enables the simultaneous streaming of uninterrupted audio and video content from multiple sources.
In simple terms, this means users are able to watch the broadcast without experiencing any buffering (delay) or loss of signal, providing a smooth and uninterrupted experience for the user.
Building the foundation for future growth
While the above initiatives may not have concrete revenue projections attached, they still demonstrate how Global Invacom is planning its growth trajectory and laying the groundwork for stronger growth in the future. There are definitely good reasons for investors to feel optimistic.
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The information provided is for general information purposes only and is not intended to be personalized investment or financial advice. Motley Fool Singapore contributor Royston Yang does not own shares in any of the companies mentioned.