Director, RaaS Advisory, Research as a Service (RaaS)

Research as a Service (RaaS)

Director, RaaS Advisory

Insightful Financial Models and Research Analysis

Connect to the right investors through smart and insightful financial models and research analysis.

Equity Bottom-Up

<div>
<div>
<div>
<div>
<p>Smart Parking Ltd (ASX:SPZ) is engaged in the design, development, and management of its proprietary parking technology across Australia, New Zealand, the United Kingdom and Germany. The company services more than 800 customers globally and manages almost 900 sites, with a global target of 1,500 sites by 2025. On a monthly basis, SPZ’s technology processes more than 13m vehicles passing through its sites. Its technology is processing more than 31m transactions a day. The company generated a 68% increase in revenue in FY22 to $38.1m while adjusted EBITDA increased almost three-fold to $8.8m. FY22 was also a year of expansion for Smart Parking in which it built new foundations in Germany, Australia and New Zealand while continuing to scale the core business in the UK. Currently, 80% of revenue is generated in the UK and while this region is still growing, with 303 new sites in FY22 and acquisition opportunities, Smart Parking is looking to expand into European markets, with Germany its first foray. This expansion should progress the company to its stated growth target of 1,500 sites globally under management by June 2025. SPZ as recently as late October affirmed this target was on track.</p>
<div>
<div>
<div>
<div>
<h3>Business model</h3>
<p>Smart Parking operates three business divisions: Parking Management; Technology; and Research and Development. Revenue is derived from parking breach notices (PBNs) and long-term contracts on monitoring technology and real-time information derived from the technology. PBNs generate around 83% of revenue for the group and are expected to remain the main source of income for the company. The company’s proprietary technology, SmartCloud, allows successful plate matching with infringement business rules and manages the full life cycle of a breach notice from issuance to payment or collection. The company’s clients include retail, property owners and managers, and councils.</p>
<h3>Maiden profit in FY22, FY23 is tracking ahead</h3>
<p>The company delivered its maiden underlying NPAT in FY22 of $1.5m following strong growth in both revenue (up 85% on the previous corresponding period) and adjusted EBITDA (up four-fold to $8.8m). FY22 also saw record PBNs issued, up 81% versus the pcp. SPZ has reported (presentation on 26 October 2022) that FY23 is experiencing continued growth with results year to date tracking ahead of the pcp. PBNs in July/August were more than 26% ahead of the same two months in 2021, with almost 120k PBNs issued. As at 23 September, the company had 896 sites, 30 of these in New Zealand, which is a new region for the company, and 45 in Australia, which also is scaling. SPZ noted that its NZ parking services operations are now EBITDA and operating cashflow positive. Smart Parking has also signed its first sites in Germany where it has set ambitious growth targets in a large addressable market of more than 90,000 sites. The company has flagged that it is expecting further profitable growth in FY23.</p>
<h3>Trading at a discount to tech index, closest peer</h3>
<p>Smart Parking is trading at a significant discount to its Australian-listed tech peers. The ASX/S&amp;P All Tech Index is currently trading on a median of 3.9x EV/Sales historical and 3.4x forward, compared with SPZ’s 2.6x FY22 EV/Sales multiple (based on the current share price). There is no direct peer in terms of business model. We view the closest as AVA Risk Group, a global-focused smart security and sensing technology group, which is also profitable operationally, and at just over 3.0x FY22 EV/Sales is trading at a premium to SPZ.</p>
</div>
</div>
</div>
</div>
</div>
</div>
</div>
</div>





Smart Parking Ltd (ASX:SPZ) is engaged in the design, development, and management of its proprietary parking technology across Australia, New Zealand, the United Kingdom and Germany. The company services more than 800 customers globally and manages almost 900 sites, with a global target of 1,500 sites by 2025. On a monthly basis, SPZ’s technology processes more than 13m vehicles passing through its sites. Its technology is processing more than 31m transactions a day. The company generated a 68% increase in revenue in FY22 to $38.1m while adjusted EBITDA increased almost three-fold to $8.8m. FY22 was also a year of expansion for Smart Parking in which it built new foundations in Germany, Australia and New Zealand while continuing to scale the core business in the UK. Currently, 80% of revenue is generated in the UK and while this region is still growing, with 303 new sites in FY22 and acquisition opportunities, Smart Parking is looking to expand into European markets, with Germany its first foray. This expansion should progress the company to its stated growth target of 1,500 sites globally under management by June 2025. SPZ as recently as late October affirmed this target was on track.




Business model
Smart Parking operates three business divisions: Parking Management; Technology; and Research and Development. Revenue is derived from parking breach notices (PBNs) and long-term contracts on monitoring technology and real-time information derived from the technology. PBNs generate around 83% of revenue for the group and are expected to remain the main source of income for the company. The company’s proprietary technology, SmartCloud, allows successful plate matching with infringement business rules and manages the full life cycle of a breach notice from issuance to payment or collection. The company’s clients include retail, property owners and managers, and councils.
Maiden profit in FY22, FY23 is tracking ahead
The company delivered its maiden underlying NPAT in FY22 of $1.5m following strong growth in both revenue (up 85% on the previous corresponding period) and adjusted EBITDA (up four-fold to $8.8m). FY22 also saw record PBNs issued, up 81% versus the pcp. SPZ has reported (presentation on 26 October 2022) that FY23 is experiencing continued growth with results year to date tracking ahead of the pcp. PBNs in July/August were more than 26% ahead of the same two months in 2021, with almost 120k PBNs issued. As at 23 September, the company had 896 sites, 30 of these in New Zealand, which is a new region for the company, and 45 in Australia, which also is scaling. SPZ noted that its NZ parking services operations are now EBITDA and operating cashflow positive. Smart Parking has also signed its first sites in Germany where it has set ambitious growth targets in a large addressable market of more than 90,000 sites. The company has flagged that it is expecting further profitable growth in FY23.
Trading at a discount to tech index, closest peer
Smart Parking is trading at a significant discount to its Australian-listed tech peers. The ASX/S&amp;P All Tech Index is currently trading on a median of 3.9x EV/Sales historical and 3.4x forward, compared with SPZ’s 2.6x FY22 EV/Sales multiple (based on the current share price). There is no direct peer in terms of business model. We view the closest as AVA Risk Group, a global-focused smart security and sensing technology group, which is also profitable operationally, and at just over 3.0x FY22 EV/Sales is trading at a premium to SPZ.









Smart Parking Ltd - No Standing Still on Its Growth Runway

Australia

Structural Monitoring Systems plc is involved in the development of a technology which monitors and tests the structural integrity of various materials and products.  The tests are done on structures such as aircrafts, ships, power plants and rolling stocks.

Seeing Machines Limited develops computer vision related technologies in Australia, North America, and South America. The company?s software and engineering services are used in products and applications that range from devices that enhance road safety and save lives. It offers DSS products and services to detect and manage driver fatigue and distraction. The company serves automotive, mining, commercial road transport, rail, aviation, and consumer electronics industries. Seeing Machines Limited was founded in 2000 and is based in Braddon, Australia.

Elsight Limited develops mobile security and surveillance solutions. The Company offers video and data capturing, recording, and transmission for various real-tactical security and surveillance purposes for security solutions, detection, verification, investigation, and tactical operations. Elsight serves customers worldwide.

Ambertech Limited distributes high technology equipment to the professional broadcast, film, recording, and sound industries, as well as consumer audio and video products in Australia and New Zealand.

Cellnet Group Limited is a wholesale distributor of mobile phones and mobile phone accessories in Australia and New Zealand.  The Company distributes its products to manufacturers and supplies to major retailers and service providers. The Group also distributes IT products such as PC's, digital cameras, scanners and printers.

DTI Group Ltd provides surveillance systems and fleet management solutions for the global mobile security market.

Bluechiip Ltd. provides tracking and monitoring services. The Company serves the healthcare, cold chain logistics, aerospace, and security sectors worldwide.

Constellation Technologies Limited provides IT services. The Company offers cloud computing, analytics, data center, engineering, and other related activities. Constellation Technologies serves customers in Australia.

Hydrix Ltd designs and manufactures medical devices. The Company offers programmable cochlear modules, ventricular assist devices, biosensors, x-ray machines, sensing eyewear, and clever culture systems. Hydrix serves customers worldwide.

Hills Ltd manufactures construction materials, electronics and communications products, and outdoor play equipment.  The Company produces steel roofing, electronic security and entertainment products, and steel walkways, pipe and tubes; television antennas, set top boxes, and satellite communications systems; and swing sets, ladders, and solar hot water heaters.

SUZUKI CO., LTD. manufactures electronic component for communication devices, office automation equipment, and Integrated Circuits.  The Company's products include connector contacts, lead frames, and precision press dies.  Suzuki has its associated company in China.

NIPPON KODOSHI CORPORATION manufactures and sells electrical insulating paper for electrolytic capacitors and batteries.  The Company exports its products mainly to Asian countries.

Teikoku Tsushin Kogyo Co., Ltd. manufactures and sells electronics parts such as switches, resistors, and tuners.  The Company's products are used for consumer appliances, communication equipment, automobiles, electronic inspection instruments, and industrial machinery.

Aurotek Corporation develops and manufactures factory automation machines and equipment, transmission products, and seismic isolation systems and anti-earthshaking devices for houses and skyscrapers.

Megaforce Co Ltd manufactures plastic parts.  The parts are used in information, communication, and consumer electronic products such as DVD players, printers, cell phones, MP3 players, and so on.

Taiwan Chinsan Electronic Industrial Co., Ltd. manufactures and sells aluminum electrolytic capacitors and related material.  The Company markets its products under the brand name Elite.

Niching Industrial Corporation wholesale and retail trades semiconductor and optoelectronics related materials. The Company's products include reclaim wafers, pattern wafers, tested wafers, equipment temperature control systems, dryers, gas supply systems, specialty gases, lead frames, flip chip substrates, capillaries, memory module boards, and printed circuit boards (PCBs).

Kinko Optical Co., Ltd. designs, develops, and manufactures optical lens modules and components, such as camera zoom lenses, digital camera lenses, scanner lenses, and LCD (Liquid Crystal Display) projector lenses.

Siward Crystal Technology Co., Ltd. manufactures and markets quartz crystals. The Company's main products are crystal units, crystal filters, and crystal oscillators.

Siward Crystal Technology Co,Ltd. (2484 TT)

Control Print Limited offers coding and marking for packages and products. The Company offers coders, metal marking systems, ink jet coders, and laser coders.

Smart Parking Limited manufactures products for commercial parking facilities operators and regulatory authorities. The Company produces monitoring devices, infrared sensors, guidance systems, license plate readers, and meters.

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

Smart Parking (SPZ AU)

Smart Parking Ltd - No Standing Still on Its Growth Runway

Smart Parking Ltd (ASX:SPZ) is engaged in the design, development, and management of its proprietary parking technology across Australia, New...

Research as a Service (RaaS)

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)