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Affluence Corporation Stock Jumps 14% After Subsidiary Inks Major Deal To Provide Smart City Software And IoT Technologies In Vietnam (OTC Pink: AFFU)

Affluence Corporation (OTC PINK: AFFU) stock is back in rally mode after announcing a second major Q4 deal that monetizes its innovative IoT and 5G enhancing technologies. Again, its wholly-owned subsidiary OneMind Technologies is the focus after executing a contract for products and services from the Department of Tourism (DoT) of Quang Ninh Province, Vietnam. 

The deal has the provincial DoT leveraging OneMind's intelligent IoT solutions to enable and integrate specialized systems and sensor data to generate real-time geo-located insights that assist decision-making processes related to its tourism management. While it's a win for the client, it is for AFFU as well. And, moreover, is another validation of its innovative technology. 

Notably, it's the second large deal this quarter, and perhaps more importantly, from an investor's perspective, it may be the precursor of many more to come. That would result from surging global demand for Smart City Software and IoT technologies. While the sector applications don't get much headline space, it's a booming multi-billion dollar services sector that AFFU is well-positioned to exploit. And the excellent news is that they are doing just that, with clients, like those in Quang Ninh, partnering with AFFU subsidiaries to take advantage of best-in-market management solutions. For good reasons.



Video Link: https://www.youtube.com/embed/3MJKLEhlW8s

Different Is Good And Valuable

In this instance, the OneMind Tourism Solution enables real-time client management focused on sub-systems such as machine ticketing services, hotel occupancy, local attractions, and security and emergency response to make informed and timely actionable decisions. But, don't consider its platform a camera system. It's much more comprehensive.

It will serve as the centralized operations center where the Tourism Department can visualize and manage assets and sub-systems across Quang Ninh Province. Specifically, it provides a real-time means to gather and analyze data to make intelligent and strategic decisions to manage its properties. In addition, it creates reporting tools that provide insights at all levels of the organization, with data available to stream on smartphones and tablets. Thus, anytime, anywhere, management can have its pulse on its operations. By the way, implementation of the system has begun, and AFFU said it will recognize revenue this quarter and that the project provides a tailwind of revenue growth into Q1 of 2022. Growth is no coincidence.

The OneMind Smart City Software is simply better than the rest. And part of its genius is that it can take in data from disparate systems in any format and provides a "smart" solution. Moreover, while this game-changing platform and software are earning attention for its city management capability, its comprehensive services solutions go well beyond that placement. The scalable OneMind solution can be expanded to enable smart airports, smart construction, and smart hospitals. 

That opens doors to significant contract opportunities that can have multi-million dollar price tags. AFFU isn't shying away from those markets.

Adding To Record-Setting Performance

In fact, its ambition to earn new business is on display, evident by posting record-setting performance in Q3. And better still, while it's doubling of comparative Q3 revenues was impressive, AFFU guided to expect more of the same in the current quarter resulting from an inherent revenue-generating tailwind. If so, its 52-week high of $0.67 is in the crosshairs. Indeed, they have laid the groundwork to reclaim that level. 

In addition to all-time high revenues last quarter, AFFU announced another milestone in November. And it's a milestone that can become a catalyst sooner than later. It's an expected result from its OneMind Technologies subsidiary developing a software solution for Situational Awareness for airport terminals. Indeed, AFFU is bullish on its prospects. But so are others, with some calling the platform a game-changer for how security and situational management can be managed. Best of all, the platform is ready for market, which could make it an enormous revenue-generating asset in 2022.

That's not all. Because it's built upon a scalable and flexible platform, it can be made client-specific to meet the needs of a diverse customer base. Moreover, the comprehensive suite of services provided makes it ideal for ushering in the next wave of Smart City evolution.

Managing A New Normal

That's happening now. Its Airport Hypervision product is already penetrating markets by leveraging the inherent strength of its award-winning Smart City software platform providing situational awareness to major cities, including Barcelona, San Francisco, Oslo, and Guadalajara. 

Here's better news. AFFU believes there is nothing on the market with the power and technological capability to address the "new normal" in airport security. Thus, AFFU is positioned to accelerate placements from a competitive perspective by promoting its advantages. More than better, AFFU is timely. 

The "new normal" has changed the global landscape, especially the travel sector. And it has exposed an immediate need for a more comprehensive tool to address a growing number of issues faced in the travel sector. OneMind has developed that tool. In fact, its Airport Hypervision may become the go-to platform resulting from its enabling situational awareness feeds for crowd management, thermal screening, and incident management. And like its other software, it provides a real-time reporting mechanism allowing airport management to monitor its facility, take immediate corrective action when needed, and prevent an escalation of unwanted situations. Remember, security comes in different fashions. 

Airport Hypervision addresses them all. For instance, using its visual analytics, airport management can monitor social distancing and mask mandates. Not only that, through its integration with thermal cameras, a disembarking passenger with an abnormal temperature can be identified and directed to an on-site clinic. Its utility gets even better.

Airport Hypervision enables management and security to jointly track airport and tarmac assets, monitor security and situational awareness, and produce dashboards and report on vital performance indicators in real-time. Simply put, OneMind's solution is an all-in-one platform, essential to its clients, is cost-effective, and seamless to implement. Those advantages not only best its nearest competitor but, as an extension of OneMind's Smart City software solution, can earn rapid adoption into airports worldwide. Still, for AFFU, that could be just the first step in penetrating major global markets.

Smart City Software Demand Is Under The Radar 

Affluence's mission is well underway, capitalizing on the strengths of its OneMind subsidiary to seize its share of global market opportunities. Moreover, they view Airport Hypervision as just an extension to OneMind's Smart City software solution. A variant of it may be the perfect platform for buildings, especially modern construction, with upgrades and implementations making them as complex as small cities.

Keep in mind, as complexity increases, especially related to IoT technology, so does the need for real-time dashboards and analytics to monitor and enhance operational management. The opportunities, by the way, extend to large public and private buildings. And with OneMind providing multi-domain integration across diverse sub-systems, it can combine and sort data to address the macro issues of the organization and the micro issues for the individual users. Better still, this isn't a "wait for it" product. It's a proven platform already being used in smart cities and smart construction. 

Thus, while two major deals were announced this quarter, AFFU is well-positioned to earn more.

OneMind Technologies Adds To Value Proposition

In fact, AFFU guidance calls for significant increases in revenues resulting from extraordinary demand for the type of IoT technologies they offer. Know this, too. AFFU isn't a one-product company. On the contrary, AFFU is well-diversified to take advantage of current and emerging needs in an IoT market that is still in its infancy. Those needs and demands are leading to an expansion in AFFU's multiple business segments, particularly at OneMind Technologies. 

And it's no secret that OneMind is generating an impressive revenue-generating tailwind heading into Q1 of 2022. Two deals in Q4 show that. But, the better news is that OneMind is also blazing a trail for sustainable revenue growth for AFFU next year. Its innovative and scalable technology has already been chosen as the command and control software for one of the world's most notable Smart City projects. AFFU noted it's holding a signed contract and has completed the final implementation processes. They expect to release a formal announcement about its potentially transformational impact once its technology and service partners meet their own requisite requirements.

Thus, another catalyst is imminent. 

Moreover, it's not a "what if" project. AFFU expects revenue recognition from the deal to start this quarter. But, even better, they guided toward a seven-figure product backlog into the first half of 2022. So by connecting the revenue-generating dots, on a comparative basis, revenues are on track to at least double again not only in Q4 but in the coming quarters. Notably, that's just from OneMind contributions. Affluence has plenty more asset firepower to drive shareholder value higher.

Acquisition of ISLP Exposes New Opportunities 

Earlier this year, AFFU acquired ISLP, positioning them ideally to capitalize on significant revenue-generating opportunities in the telecom services and specialized technologies space. ISLP, by the way, is a breakout success story from the Indian Institute of Technology (IIT) Incubator in Delhi. And since emerging on the scene has established itself as an industry player uniquely qualified to build customized digital solutions for clients using cutting-edge technologies, including blockchain, AI, Machine Learning, Business Intelligence, and Data Science. 

AFFU is already leveraging ISLP's expertise to build and deliver fiber technology-based last-mile infrastructure and technology solutions to one of the largest telecom companies in Asia. Also, AFFU announced a new project commencing in Q1 of 2022, with revenues contributing to its books no later than Q2 of next year. That project can be an earnings game-changer for AFFU as well, with the company expecting to accrue value through a funding term sheet in place for $40 million. As noted, that deal is expected to start during the first weeks of next year. There's still more to like. 

Guidance Suggest Near-Term Acquisitions

AFFU guided to expect accretive acquisitions to close within the first quarter of next year, which should translate into increased shareholder value and corresponding higher share price. For investors at these levels, and even higher, that's good to know. What's also good to know is that future acquisitions will strengthen an already strong asset portfolio. The combined strength should do more than keep AFFU in its best operating position ever; it can turn the growth switch from hyper to warp speed. 

That shift is happening already. AFFU announced executing two global master product and services agreements with world-class organizations. The first international product distribution agreement already earned one major contract, with AFFU adding that OneMind has also quoted several additional projects for its 2022 business pipeline. The second deal is a services agreement for its IoT and 5G technology product stack. Both strengthen its operating position. More importantly, from a value-creating perspective, updates on how each impact near-term revenue streams are likely to come by the end of Q4 or early next year. 

Here's the interesting part of the AFFU investment proposition. Despite trading at nano-cap prices, AFFU is effectively competing against large-cap companies. Moreover, its agile operating structure is ideally suited to allow AFFU to exploit both current and emerging business opportunities from the multi-billion-dollar IoT industry. One of its new targets is to seize a share from the $7.6 billion biomedical waste market through its pending acquisition of Saamarthya. And OneMind isn't slowing down, either.

In addition to its current projects, OneMind Technologies is seizing upon opportunities in a $9.2 billion Supervisory Control and Data Acquisition (SCADA) market by marketing its innovative closed-loop process automation solution. And they have an excellent chance of earning market traction, especially with its Closed Loop Process Automation solution advancing a unique IoT technology that delivers unprecedented efficiencies and cost optimization in the manufacturing sector. Again, unlike most competitive options, OneMind differentiates itself by providing real-time data acquisition, analytics, and instruction data feedback to the computer-controlled processes. While it's technical jargon to the layman, the easiest way to describe what OneMind is doing is to know its delivering next-gen technology to diversified markets that need it today.

Best-In-Class Solutions Driving Growth

And customers are lining up. The technology is already deployed at more than 70 Solar Power generation farms throughout India, the Middle East, and Asia. While that's excellent news for today, the future looks even better after AFFU highlighted that several new revenue-generating projects are expected to start in the coming weeks. Those initiatives expand AFFU's target audience, extending business reach into solar and wind power generation farms, machine components manufacturing units, and the pharmaceutical manufacturing industry. Remember, too, AFFU is already generating revenues from these services. Notably, record-setting. 

Its Industrial IoT - SCADA solution deployed as a Software-as-a-Service (SaaS) model generates income from a one-time fee and an ongoing monthly charge starting at $10 per machine. Hence, considering that AFFU expects to place more than 50,000 machines in India alone over the next twelve months, a formidable revenue stream is forming. Better yet, additional planned placements throughout North America and Europe next year should significantly enhance that revenue stream and, more importantly, keep it sustainable with its sticky features.

Deals And Acquisitions Expose Value Disconnect

Factor this as well when evaluating the investment proposition. In addition to the deals and acquisitions already mentioned, AFFU expects to generate meaningful revenues from RAS Engineering PA, a telecom infrastructure engineering and design services organization that provides the critical design work needed for telecom construction projects and site plans.

For AFFU, it's an ideal niche company that can generate substantial near-term value by offering A/E design, code compliance, building performance testing, quality control testing, commissioning, measurement & verification, special inspections, and consulting services. Investors can expect this acquisition to gain revenue-generating momentum in the coming quarters. Still, from a sum of its parts calculation, this asset doesn't appear to be valued at all. In fact, the intrinsic value of any of its subsidiaries should appropriately dwarf the current share price. But, market disconnects create opportunities. 

Thus, while AFFU's 14% jump last week attracted attention, there's still a lot of value unrecognized. Moreover, additional assets are being added, and several active deals generate income. Hence, knowing that AFFU stock reached $0.67 during the past 52- weeks with less operating firepower, the expectation for its shares to surge higher in the new year is a reasonable assumption. In fact, with several updates expected in the coming days, weeks, and quarters, the valuation gap is simply getting too big to ignore. Therefore, as investors take advantage, the path of least resistance may be decisive to the upside.

 

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