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Why the Fastbrick Robotics Ltd share price rocketed 24% higher today

One of the best performers on the local share market today has been the Fastbrick Robotics Ltd (ASX: FBR) share price.

At the time of writing the robotics company’s shares are up 14% to 16.5 cents, but at one stage were up as much as 24% to 18 cents.

Why are its shares rocketing higher?

Today’s gain is likely to be attributable to an update the company released this morning on its Hadrian X construction robotics programme.

According to the update, the bricklaying robot is on track to be fully assembled during the second quarter of 2018, with the most technically complex component of the build already constructed, tested and fitted.

The update went on to advise that the company’s software team are now completing the construction management software package (CMSP) required by the Hadrian X. Pleasingly, the team has recently developed several new features for this software, including a waste management system and the ability to create projects for two and three-storey applications for future testing.

What’s next?

Once the Hadrian X is fully assembled and its construction management software has been completed, management will then commence the strenuous testing process associated with applying its proprietary Dynamic Stabilisation Technology (DST) to the Hadrian X.

This testing process will confirm that the DST meets the functional and technical requirements for the Hadrian X. After which, the test results will assist the company in assessing DST’s applicability to other potential product solutions currently being considered.

After DST testing, the Hadrian X programme moves to a Factory Acceptance Testing (FAT) phase which requires the robot to build structures in different configurations within a controlled factory environment.

Then finally, in the second-half of 2018 Hadrian X will move outdoors for field testing in preparation for its first house build, a 3-bedroom and 2-bathroom structure known as Build1. Management aims to complete that in the fourth-quarter of 2018.

Should you invest?

I think Fastbrick Robotics is an exciting robotics company with enormous potential.

If the technology is as successful as expected, I don’t believe it will be long until Hadrian X is rolled out en masse to build houses around the world. Especially if its partnership with global giant Caterpillar bears fruit.

But it is still a little soon for me to invest. I intend to sit this one out until the results of Build1 are known. Until then, I’ll be focusing on tech companies such as Altium Limited (ASX: ALU) and Appen Ltd (ASX: APX).

Alternatively, these three up and coming mid cap stocks could be even better options.

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