The Vivid Industrial business continues to impress with intelligent lighting systems having been supplied to multiple new customers for interstate construction projects, a SmartHID lighting solution being supplied to a logistics facility, which was another project for Australia's largest industrial developer and owner. There is also talk of large scale opportunities across retail, logistics, infrastructure and intermodal operations both in domestic and overseas markets.
They mentioned the retrofit for Schweppes Australia (part of the Asahi Group), a new development site for Linfox, an international healthcare company and most significantly of all IMO, multiple Goodman Group sites.
Management claim that during the second half of FY15 the business has seen growing interest from domestic and overseas-based industrial corporations and government organisations which should lead to growing sales revenue.
Back to the Goodman Group. This was the most significant news because of the reference to multiple Goodman Group sites using the company's technology. To realise the significance of this consider the fact that Goodman Group have 206 properties under management in Australia and 432 worldwide and business space under management of 18 million square metres.
Then consider the fact that they have relationships with over 1750 customers globally including global market leaders across logistics, pharmaceuticals, automotive, retail and e-retail. These companies include DHL, DB Schenker (the logistics arm of Deutsche Bahn), Nippon Express, Toll (soon to become part of Japan Post), Linfox, Woolworths, Metcash, Tesco, Wesfarmers (Coles and Bunnings), Amazon, BMW, Daimler and Volkswagen and they're just a handful of names.
Not a bad partner to have if they decide to implement your technology across their property portfolio which is looking likely with mention of multiple sites already applying the technology. One must also consider that Goodman Group are growing so over time the properties under management both in Australia and overseas will grow as will the business space under management and the number of customers they have, so what looks impressive now will be even more impressive in the future.
Vivid Industrial is on the verge of taking off, but given the sheer size of the opportunities and markets that await it both domestically and overseas going forward the strong growth that lies ahead also looks to be strong sustainable growth over the long-term.
Looking back on this in the years to come a share price of 10c will look awfully cheap IMO.
GER Price at posting:
10.0¢ Sentiment: Hold Disclosure: Held
