A key mile stone…Hadrian X assembly complete

Robotic technology company FBRannounced on 7 June that mechanical assembly of the Hadrian X – the world’smost advanced construction robot, is complete. With more than three weeks leftto go in the month, FBR has delivered on a key milestone: completing, beforethe end of June 2018, the commercial prototype of the group’s patented 3Drobotic bricklaying system. FBR is now commissioning the vehicle and testingthe core Dynamic Stabilization Technology (DST).   

Factory Acceptance Testing istargeted to be completed in the September quarter, with construction of thefirst 180m2 demonstration house targeted for the December 2018 quarter. Note:with 116.7m Class A Performance Shares worth some A$21.6m (at current shareprice levels) dependent on successfully completing this trial house byend-November 2018, we imagine that the Hadrian X Project Gantt chart is “frontand centre” at management meetings. 

A recently completed global market analysis for FBR indicated that the addressable market for the Hadrian X construction robot is up to 150,000 machines. FBR intends to initially target 2% of this market over the next five years. Note: management’s target of 2% of the addressable market implies a sales target of 3,000 machines in a five-year period. State One’s forecast sales profile is significantly more conservative;we assume sales of 25 units in FY21E, 100 in FY22E, 200 in FY23E, 300 in FY24Eand 300 in FY25E, for a combined five-year total of 925 units. See initiation report “Building on technology for exciting growth, 19 January 2018”.