Vection Technologies Ltd (ASX: VR1) has caught the attention of investors recently, surging up by about 86% over the past 7 weeks. Today alone, the Vection share price jumped up 9.52% to 12 cents at the time of writing.
The company builds technology that enables people to interact with designs in virtual reality. For example, the company's product, FrameS, is used by luxury car makers to provide virtual showrooms for customers. This includes brands such as Lamborghini, Maserati, Volvo and Philip Morris.
What's moving the Vection share price?
Vection has seen improved performance in its share price since announcing a partnership with Nuovamacut Automazione Spa from Italy. Nuovamacut distributes Solidworks software, a product compatible with Vection technology, to 8,600 company clients and 26,000 users. This makes it the biggest designer community in the Italian territory. Its diverse client portfolio includes sectors ranging from industrial machinery, engineering and construction to aerospace and education.
In addition,Vection announced a partnership with Luiss Business School yesterday. This company has accreditations that will allow Vection to accelerate the promotion of its AR suite of healthcare solutions across the public and private healthcare sectors. The school is the creator of the Italian model for risk management in healthcare.
Vection anticipates strong revenue growth in the second half of FY21 and has an increasing focus on recurring revenue generation. With a goal of achieving annual recurring revenues of 50% by June, 2022. Moreover, it has a strong cash balance of ~$8 million.
What's the addressable market?
Vection says engineers, designers and builders are increasingly looking for solutions that can quickly turn their computer aided design (CAD) data into real-time experiences. This helps to reduce costs, and creates unique experiences. In addition, the convergence of augmented reality (AR), virtual reality (VR), and mixed reality (MR) with CAD software is revolutionising design and creation workflows.
However, the company believes opportunities exist in many fields. For example, medical, engineering, real estate, military, and education. In manufacturing specifically, the company says there is a US $18 billion total addressable market in design by 2023. With an additional $13 billion in construction of manufactured items.
What's more, with major Italian entities as investors, the Vection share price has institutional backing. Specifically, the Italian Government, HTC Vive X, Primoglio SGR and A11 Venture.
