Ann: Digital Speaker Development Update, page-36

First 36 Last

Share
Profile

Follow
Tooheys8

4,838 Posts.

397

31/03/21

12:14

Post #: 52169333
Share
Originally posted by shift: ↑

Audio Pixels Holdings (AKP) - Investment thesis is getting louder and clearer

AKP has successfully tested its audio chip outside of the cleanroom, and in doing so, cleared what could be the last major hurdle on the path to commercialisation. While AKP still needs to package its new MEMS, once manufactured, and complete development of its evaluation tool for third-party validation, this is months not years away. We reiterate our Buy and $38.48ps TP.

AKP’s chip is now working outside the cleanroom

AKP has achieved another significant milestone on its path to commercialising what could be the world’s first digital speaker, having confirmed a successful testing of its technology outside of the cleanroom.

While the packaging and performance (frequency range and decibels) of AKP’s audio chips were suboptimal due to the use of outdated MEMS, this was expected, with AKP still labelling the tests a resounding success.

Of the 30 audio chips that were packaged for testing, only 6 performed to expectations. This was attributed to the use of legacy MEMS with known defects that have already been addressed via a new MEMS design.

The key takeaways are that the packaged audio chip (i) functions as intended outside of the cleanroom, (ii) can be scaled to address different end markets, and (iii) is expected to perform optimally with the new MEMS.

Next steps to commercialisation are less complex

With the major development hurdles now passed, the key focus for AKP turns to (i) packaging the new MEMS, once manufactured, and (ii) finalising development of the evaluation board for chip validation by third parties.

Huge addressable market across multiple products

While product applications for the speaker chip are likely to be enormous, we estimate that demand from the premium end of markets such as smartphones, laptops, TVs and luxury cars could total >3bn units p.a.

With a clear first-mover advantage and no known competition across the incumbent manufacturing base, AKP’s TAM is immense, and drives our view that the company will ultimately license its IP to third parties.

Reiterate Buy rating and $38.48ps Target Price

While noting the binary nature of the investment case for AKP, our estimated fair value of $38.48ps continues to be based on attainment of a 10% share of its target markets by CY35, with this equating to NPAT of A$2bn.

Our DCF valuation assumes BD costs of $59m CY21-23, WC/sales of 30%, a CY36 terminal year, and WACC of 21%. Based on an EV/EBITDA of 21x, we estimate AKP will justify its current market capitalisation by CY25

Expand

if this thing works to spec and as anticipated from what the company has promised it will be bought out within 12 months of a product release . believe whatever you like . it won't be trading as akp in 2025 let alone 2035 in my opinion
AKP Price at posting: $29.01 Sentiment: Buy Disclosure: Held
4 Upvote

0 Great analysis

Reply

Top Stories

EBR

EBR Systems' heart pacing device on-target to reach the US market

SKS

SKS secures $20M for extension works on Melbourne data centre

BOE

Boss Energy ramps up as industrial-scale plant build continues; FY25 guidance of 850Klb intact

Is the ASX getting its groove back? Here's 5 IPOs in September to watch

GDP grows 0.2% in June quarter, but annual growth the slowest since the 1990s