MineHub Technologies is a stock to watch, Haywood says

Haywood analyst Gianluca Tucci has identified a stock he thinks might be of interest to investors in two sectors in MineHub Technologies (Minehub Technologies Stock Quote, Chart, News, Analysts, Financials TSXV:MHUB).

In a research update to clients September 6, Tucci said MineHub is a stock that investors should be watching closely.

Vancouver-based MineHub is an enterprise software company that has created a supply chain platform for the commodities market.

Tucci says MHUB has a first mover advantage in digitizing the metals and mining supply chain.

“With the world moving towards complete process digitization, MHUB is moving in to capitalize on the “paper and spreadsheet” oriented commodities industry. The Company presents the ability to perform as a low-friction SaaS tool in specific project areas such as order collaboration, ESG reporting and assay exchange. With already a growing, global footprint, MHUB is an early mover in a mining industry ripe for digitization who this far in 2023 has secured notable contracts with Tier 1 players.”

Tucci says the ecosytem and revenue mechanics for MHUB work like this: first, he says the company looks to sign with the largest companies, then onboard the counterparties, which in turn feeds pipeline sales, and, finally “land and expand” within existing client groups.

The analyst says the market potential for MHUB is huge.

“Minehub is targeting a sector of vast potential, currently equating to ~$1.5B in aggregate revenue directly from SaaS fees,” the analyst concluded. “Given the Company’s global footprint in some of the largest industrial markets, they can capitalize on trade finance and logistic supply-chains,” the analyst argues. This is all driven by the robust growth in global value chains (GVCs) summarized by the single products manufacturing and assembly in multiple countries. MHUBs digital platform allows them to filter an aggregate $13 trillion market through global market segments. While it charges SaaS fee for supply-chain management, it charges ~10-20 bps per loan value in trade finance, and 0.025% tracking fees for logistics services. All in all, a $7.5B addressable market ready for the picking.”