Australian Internet of Things (IoT) technology company X2M Connect Limited (ASX:X2M) has signed further significant contracts in South Korea.
X2M has secured five new customers in the South Korean water monitoring market with the combined value of the contracts totalling almost A$2 million.
This brings the number of Enterprise and Government customers across the X2M group to 50 and the number of South Korean municipalities utilising the X2M IoT platform to 26.
The largest contract is for water monitoring and control for the county of Jangsu. This contract valued at approximately A$1.25 million is for the complete county addressable market of 9,754 households.
This is the second municipality in South Korea to contract with X2M for its entire addressable market.
Four other municipalities have contracted to install the X2M IoT platform for water monitoring and control for a total of 3,252 households and valued at approximately A$0.7 million.
These four municipalities, Paju and Seosan cities and Wanju and Sunchang counties, have a combined addressable market of approximately 113,000 households. These municipalities provide the potential for approximately A$13 million of revenue in the future if X2M was successful in securing contracts for all these households.
X2M’s addressable market for South Korean existing customers is significant Once a municipality has decided to digitise its water, the logical process is to convert all households to digital remote water monitoring and control in order to realise the full benefits.
n this case, Jangsu County have elected to convert the entire addressable market in the county in one contract allowing them to obtain the full benefits immediately.
The total addressable market for households with water meters in X2M’s existing South Korean customer base is approximately 3.6 million households, with a potential value of more than $440 million in revenue if all those households were contracted to be fitted with remote water meter monitoring and control.
One of X2M’s strategies is to continue to convert that addressable market with recent contracts from Bucheon City and Okcheon County confirming success in that conversion. X2M builds on the strong start to FY23 Following on from the Bucheon City contract, these contracts add to the significant base of contracts expected to deliver revenue in H1FY23.
X2M now has contracted revenue of A$9.6 million which is approximately 95% of the forecast FY22 revenue of A$10.1 million.
This positions X2M well with a strong start to FY23.
Our success in securing more and more municipalities in South Korea and progressively converting each of their addressable markets onto the X2M IoT platform is very pleasing. Jangsu County have elected to convert the entire addressable market in the county in one contract allowing them to obtain the full benefits of water digitization immediately,” CEO, Mohan Jesudason, said.