Orders in industrial IoT/Qualcomm delays

TerraNet shares have performed strongly since the IPO, supported by a steady stream of new customer announcements and solid progress with our milestone targets. These included completing V2V and IoT software development kits as well as winning a pilot of its GriDD mobile data sharing app with Orange. TerraNet is also meeting leading Chinese mobile point of sale (mPoS) firms to promote a prospective new line in offline mPoS in the Chinese market. It is worth nothing, however, that delays in software releases by third parties have held up the roll-out of proximal connectivity services in China, putting back take-up of TerraNet’s software. This together with a slower than expected ramp up in revenues in H117 has led us to reduce our base case valuation range to SEK12.6-14.4/share.