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Analysts positive on iWow Technology as it looks set to benefit from exponential IoT growth

Chloe Lim
Chloe Lim4/20/2022 12:01 PM GMT+08  • 3 min read
Analysts positive on iWow Technology as it looks set to benefit from exponential IoT growth
On April 13, iWow saw its all-placement IPO three times subscribed for the total of the 26 million shares available
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Analysts seem to be upbeat on iWow Technology following its public listing earlier this month. To them, the group is a strong and up and coming technology provider in the region as it rides on the fast-growing internet of things (IoT) wave.

On April 13, iWow saw its all-placement initial public offering (IPO) three times subscribed for the total of the 26 million shares available. The company raised some $6.5 million in proceeds at 25 cents per share. Shares in iWow began trading on the SGX-ST on April 14.

See: iWow Technology's all-placement IPO three times subscribed

See: IoT company iWow Technology announces IPO, growth plans

KGI Group Research analyst Megan Choo is positive on iWow’s prospects.

In an unrated report dated Apr 11, Choo noted the company’s strong orderbook of $67.4 million as of Mar 8, with clients including blue-chip companies and government agencies.

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iWow’s revenue for the FY2021 ended March 2021 surged 504% y-o-y to $26.4 million while its bottomline grew 185 times more y-o-y. The higher figures were mainly due to the sale of TraceTogether tokens under the Smart City Solutions (SCS) segment.

Meanwhile, higher recurring revenue from Electronic Monitoring System (EMS) solutions as well as new contributions from (Alarm Alert System) AAS projects contributed to the growth of the IoT as-a-service (IaS) segment.

iWow is a technology provider specialising in vertically integrated IoT solutions, where devices and sensors are connected to cloud-application servers for a variety of applications through wireless communication technology.

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The company has a track record of over 20 years creating products that are part of prevailing electronics, prior to its entry into the high-growth IoT space in 2012. iWow is now a trusted IoT solutions provider for Singapore government agencies and B2B customers such as Singtel, Mapletree and 3M.

The Singapore research team at UOB Kay Hian is also positive on iWow, as they note that the group is a prime beneficiary of the 19% five-year CAGR in global IoT in the smart cities market.

According to market research firm MarketsandMarkets, iWow is well-positioned to tap on the global IoT market, with the Asia Pacific (APAC) region presenting the fastest growth with a five-year CAGR of 11.7% from 2020 to 2024.

More specifically, global IoT in the smart cities market is projected to grow at a CAGR of 19% from 2021 to 2026, with Apac leading the growth worldwide and Singapore and Japan being two of the largest contributors powering this growth.

“We believe structural growth is underway given iWow’s strong foothold in Singapore and its foray into Japan, Thailand, Malaysia, Indonesia and UAE,” says the research team.

The research team also believes that iWow’s robust net margins of 14% for FY2021 are a result of strong execution for customers, R&D capabilities and IoT being in its early technology lifecycle.

In addition, iWOW has created smart ART test kits which enables user identification, verified test processes and automated test readings/data in cloud operations, thereby enabling operation optimisation by various organisations. The creation of such seamless, user-friendly technological devices by iWOW are very much in line with achieving meaningful causes, such as greater sustainable development and ease for the elderly population.

As at 11.29am, shares in iWOW are trading flat at 24 cents.

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