CyanConnode Holdings (LON:CYAN) announced this week an order for 1m units, it is the largest order this financial year to date. The contract will help underpin revenues for FY24 but, to a greater extent, will support the Zeus Capital forecast for 111% revenue growth in FY25. CyanConnode is poised for many years of strong growth as it continues to win a significant share of India’s scheme to implement 250m smart meters.

Bob Liao, Analyst at Zeus Capital talking about the order book and units delivered said: “CyanConnode stated that its cumulative order intake has risen to 6.3m units with 3.9m units in backlog. In comparison, the cumulative order intake was 5.3m and backlog was 3.2m after the last contract announcement on 10 October. Therefore, cumulative units delivered have risen to 2.4m from 2.1m, indicating 0.3m units has been delivered since 10 October, significantly adding to H2 FY24 revenue.”

When talking about the valuation of CyanConnode he said: “The potential of the Indian smart meter market is far from being realised, particularly by subcontractors. To date, tenders for 222m smart meters have been sanctioned and approximately 98m smart meters have been awarded to prime bidders. We expect these orders to filter down to orders for subcontractors such as CyanConnode soon. There is typically a delay of a few months between the award of the contract to the prime bidder and the subsequent award to subcontractors. We believe CyanConnode will see many years of high double digit revenue growth.”

CyanConnode Holdings Plc (LON: CYAN) is a world leader in the design and development of Narrowband RF mesh networks that enable Omni Internet of Things (IoT) communications. With a wealth of expertise and experience in smart technology, the Group provides customers with long-range, low-power, end-to-end networking solutions and high-performance applications that help them enhance service delivery, improve business efficiency and save energy.