MiHome sales going through the roof
Sandal is a specialist developer & supplier of electronic products/solutions for smart home, IoT, energy saving and other applications.Jeff Wilke (CEO Worldwide Consumer) has revealed that Amazon sold >1m smart home devices on 17th July alone (ED Est 4m-5m for all Q2’18) thanks to its annual ‘Prime Day’ promotion. In fact the biggest 24 hours in its history. The good news is that this is having a hugely beneficial effect on Sandal’s leading MiHome division, where we reckon the e-commerce giant contributes c.50% of revenues.
CEO Alan Tadd commenting today that: “We are very encouraged by the growing demand for Smart Home, as demonstrated by some significant growth via Amazon this summer. Indeed between June to August, Amazon increased its sales of MiHome systems and devices by 330% and 442% compared with 2017.’’
But that’s not all. MiHome has also just launched a new professional installer service in partnership with Icon Heating Solutions who have assembled a network of suitably qualified electricians, plumbers and heating engineers. The package will initially cover the M5, M40 and M4 areas, where adoption is greatest.
Lastly, Sandal has continued to grow its user base at an increasing rate and there are currently 13,935 gateway systems installed with 61,453 devices connected. The company intends to launch a monthly subscription service over the next 12 months which is expected to generate a recurring revenue stream from consumers for the first time.
Based our sum of the parts analysis, we still value the stock at 65p/share: split 12p for PowerConnections, 55p MiHome, 2p Energenie and -4p re net debt.
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