Flying low: 6 tech companies which could be exposed by coronavirus
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Superloop makes about half of its revenue from platforms using its Asia Pacific telecommunications fibre network, such as hotel guest wifi and shopping centres, says RBC Capital Markets analyst Garry Sherriff.
Furthermore, its INDIGO subsea cable connects Singapore and Hong Kong, two locations at or close to the regional epicentres of the coronavirus outbreak.
Sherriff said in a note today the coronavirus pandemic would impact tech company sales over the next 12 months, as overall salesforce effectiveness is reduced by being able to make fewer face-to-face meetings.
Large cap Altium (ASX:ALU) is also high risk as Chinese users make up 15 per cent of revenue and its software is mainly ‘on premises’, meaning employees can’t access it at home.
At moderate risk are a diverse group spanning religious observances and childcare.
Pushpay (ASX:PPH), the New Zealand company that has digitised how churchgoers (mainly in the US) make collection plate donations, is a possible coronavirus victim because of the risk of lower service attendance, cancelled services, or compulsory restrictions on large gatherings by governments.
Sherriff says childcare centre operator G8 Education (ASX:GEM) is at moderate risk of occupancy declining, should parents reduce number of hours at child care centres on concerns around transmission of coronavirus. He did not mention the risk of forced shutdowns by government, nor Think Childcare (ASX:TNK) which is likely to be in the same situation.
Aerial imaging company Nearmap (ASX:NEA) could also be at risk because it wants to introduce a new product into the US market at a time when consumer and business confidence is falling, while automotive-facing tech firm Infomedia’s (ASX:IFM) has a major customer base in Japan and South Korea.
“We are cautious on a weaker global auto parts supply chain potentially delaying new contract wins or upsells from auto brands/dealerships, partially offset by high levels of recurring revenue,” Sheriff said.