Viomi Technology Company [NASDAQ: VIOT] is a Chinese company that sells smart home appliances. The company went public in the U.S on the 25th of September 2018 at $9 and raised $102.6 million. At IPO, the company was valued at $1.9 billion. While it plateaued in Q4 of 2018 after the IPO, the company has made a strong showing in Q1 of 2018. The company opened the year at $7.70 and has risen up exponentially to trade at its current price of $15.25, as at Friday’s close.
The company’s growing stock price is supported by its exponentially growing revenue. Last month, the company released Q4 earnings which showed that its revenues had grown by 142.6%. The company’s year-on-year revenues also grew by 193.3%. Viomi also declared a dividend of $0.10 per ADS share, and this did play a role in exciting the market, and give this stock its current momentum.
Going forward, the company is likely to record higher revenues, against its expanding product range of IoT enabled devices. During the announcement of Q4 results, the company announced that it continues to widen its product portfolio.
For instance, during the last appliances and electronics world expo in Shanghai, the company announced the launch of several IoT enabled products. Some of them include: The Airbot premium range refrigerator, the 5G face smart refrigerator, and zero series instant water heaters among others. According to the company chairman Mr. Xiaoping Chen, the company intends to launch 56 new products this year. With such a huge product range of technologically advanced products, there is a high probability of high revenue growth all through the year.
On top of its strong product range, the company is boosted by a growing presence in China, one of the most important markets for its products. The company hit 1500 stores within China in 2018, and intends to hit 2000 stores in the near future. With a growing store count, the number of households it continues to reach continues to grow. For instance, by end of Q4 in 2018, the company had reached 1.7 million households, and it projects that, this figure will keep growing, as its range of amazing products continue to hit the market. These are fundamental factors that will continue to support the value of VIOT in the near-term.
From a technicals perspective, this stock has broken key resistance on the 3-month 50-day moving average at $11.23. This price is now acting as support. The stock has even stronger support at $9.14 on the 3-month 200-day moving average. Given its strengthening fundamentals such as a growing brand presence in China, the 50-day moving average support is likely to hold, and see this stock test new highs. The fact that it is already paying dividends is a plus, likely to drawing in more investor demand as it continues to show strength in the market. It’s one of the recently listed companies that will continue to excite the market in 2019, even as more of them go public.
