Rakuten can see clearly now TT Vision’s prospects
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00:00 The week ends with machine vision equipment specialist TTVision that Rakuten Trade is
00:05 putting forward as an investment idea, backed by its strong order book.
00:10 It gives a buy call and a 99 cent target price.
00:13 TTV is poised for exponential growth until 2025.
00:17 The company is not only enhancing existing products, but also driving innovation with
00:22 the introduction of new offerings.
00:24 Furthermore, the submission of these new products for pioneer status may lead to substantial
00:29 tax savings, hence enhancing overall financial performance.
00:33 TTV is strategically operating in high-growth sectors, supplying LED solutions for automotive,
00:39 solar cells for PV, and discrete components for electric vehicles and consumer electronics.
00:44 TTV's order book of 72 million as of 31st October 2023 translates to a comfortable 1.4
00:51 times of FY22 revenue.
00:53 As part of its growth strategy, TTV aims to continue expanding its footprint, targeting
00:58 the European market due to the Green Deal Industrial Plan and the USA's Inflation
01:03 Reduction Act.
01:04 As such, Rakuten is forecasting a strong FY24-25 earnings growth, averaging around
01:09 35%, underpinned by a potent product pipeline, new market opportunities, and capitalizing
01:15 on high-growth industries.
01:17 According to Bloomberg, there is one other research house covering TTV that's from
01:21 JFApex, but that is not rated.
01:23 So based on Rakuten's 99-cent target prices implies a possible upside of almost 30%.
01:28 [Music]