eMARINE Global Leading Change in the Global Shipping Industry
The global seaborne shipping industry moves an estimated 90% of world trade.
This massive global industry is on the cusp of a revolution as great as its move from sail power to steam nearly two centuries ago.
In a few short years, unmanned ships are expected to begin moving silently across the world’s oceans like drones, delivering cargo faster, safer and cheaper.
The world’s first autonomous cargo vessel, Yara Birkeland, is expected to launch this year, and while crew will man the ship for a trial period, it is expected to be fully automated by 2020.
In this new age of shipping, piracy could become history, as autonomous vessels would be harder to board and have no visible control point such as a navigational bridge. If somehow hijacked, they could be locked down remotely or made to steam to safer waters.
Bad weather can also be mitigated via Dynamic Positioning and Global Navigation Satellite systems that automatically make finite adjustments to ships’ propellers, rudders and thrusters, optimizing safe handling in rough seas and eliminating human error caused by fatigue or misjudgment.
Disruptive Opportunity for New Players
According to Oskar Levandar, Rolls-Royce’s vice president of Marine Innovation, Engineering, and Technology, “The shift from having a crew on board to having land-based technicians manage ships remotely will no doubt revolutionize the operation of the global supply chain, creating new services, more efficient schemes for leasing and pooling vessels, the emergence of online marketplaces for cargo delivery by sea, and other clever innovations for the digitally connected age. These changes will probably be disruptive, as new players enter a rather staid market, the same way as Uber, Spotify, and Airbnb have done in other realms.”
We’ve discovered a small Korean company that is at the tip of the spear of the disruption in shipping. And it’s still under Wall Street’s radar.
Based in Ulsan, South Korea, home of its partner Hyundai Heavy Industries (HHI), the world’s largest shipbuilder, this small Korean technology company has already proven itself a leader ready to capitalize on revolutionary change.
Newly Listed Stock Positioned for Big Upside
HHI’s partner in the development of smart ship technologies, eMARINE Global (OTC PINK: EMRN), entered the U.S. capital markets in the second half of 2017 with a listing on OTC Markets. This is believed to be the initial step in the company’s progression to a major U.S. exchange and global operations.
Today, EMRN is the de facto industry standard for critical technologies that underpin the future of smart-ship development.
Including its partnership with HHI, EMRN is already working with four of the world’s largest six shipbuilders, including DSME (Daewoo Shipbuilding & Marine Engineering), STX, and Samsung Heavy Industries.
Other key partners and customers include SAAB, the Republic of Korea Navy, the Korean Coast Guard, and more.
Despite its impressive customer roster and a growing book of business, EMRN is relatively unknown to U.S. investors. But we think that is about to change.
Growing Portfolio of Innovative Technology
At the core of EMRN’s products offering is the company’s Intra-Ship Integrated Gateway (ISIG).
Consisting of both hardware and software, the main function of ISIG technology is to send data collected from a fleet via smart-sensing technology to ground control operators on land.
EMRN currently supplies approximately 50 ISIGs to HHI alone each year, and the numbers are growing.
Founded in 2001, EMRN is working with a growing base of marquee customers to achieve maritime ICT convergence through fully integrated products and services, offering state-of-the-art e-navigation, marine Internet of Things (IoT), and marine big data solutions, primarily in Korea with near-term expansion into U.S. and Chinese markets.
EMRN grew revenue 15% year-over-year in 2018, reaching $3.96 million.
Strong revenue growth, combined with meaningful cost reductions, enabled EMRN to significantly decrease net loss in 2018.
Looking forward, with the expansion of the company’s coastal surveillance business through several Vessel Traffic System (VTS) projects and the continued rollout of its autonomous ship solutions for public and private sector customers, EMRN management expects revenue growth to accelerate to 20% in the first half of 2019, compared to the first half of 2018.
Combined with its ongoing development work with HHI and other major customers, we believe this backdrop provides the company with significant potential to generate growth in 2019 and beyond as the multi-billion-dollar maritime industry converts from analog to digital.
Attractive Valuation at Current Levels
As a relatively new stock trading on the OTC Markets, EMRN remains thinly traded as of today.
While a steady pipeline of positive developments are expected in the coming quarters, investors looking to position early for the long-term upside still have an opportunity to accumulate shares at low prices.
Source: RedChip Companies