Next Investors logo grey

YPB passes the 100 million QR code mark

|

Published 29-JUL-2019 09:43 A.M.

|

3 minute read

Hey! Looks like you have stumbled on the section of our website where we have archived articles from our old business model.

In 2019 the original founding team returned to run Next Investors, we changed our business model to only write about stocks we carefully research and are invested in for the long term.

The below articles were written under our previous business model. We have kept these articles online here for your reference.

Our new mission is to build a high performing ASX micro cap investment portfolio and share our research, analysis and investment strategy with our readers.


Click Here to View Latest Articles

Product authentication and consumer engagement solutions provider YPB Group Ltd (ASX:YPB) reached the significant milestone of over 100 million proprietary QR codes known as “ProtectCodes” issued to existing customers of the company’s Connect platform.

This represents another important milestone for the group which has continued to expand quickly in fiscal 2019.

In May, YPB announced that it had reached a milestone of 75 million “ProtectCodes” issued, a level that had been reached in around 24 months from the launch of Connect.

In the past two months, YPB’s cannabis and pharmaceutical customers (predominantly) have now accelerated the uptake to 100 million, with over 29 million codes being issued in the past 60 days.

The company’s growth rate and news that it had recently negotiated a Master Supply Agreement (MSA) with cannabis extraction specialist Halo Labs has attracted significant investor interest.

The MSA was formalised in mid-July, and since then the company’s shares have increased by 60%.

Protecting brands and providing security solutions

As a backdrop, YPB's proprietary smartphone enabled technology suite allows consumers to confirm product authenticity and, for brands, that triggers consumer engagement.

The combination of YPB’s smartphone authentication solutions and its SaaS Connect platform, creates ‘smart’ product packaging, opening cost-effective, digital and direct marketing channels between brands and their consumers.

Connect gathers actionable data on consumer preferences, allowing it to host tailored marketing campaigns directly back to the scanning smartphone.

YPB’s technology is also trusted by the world’s largest passport issuing nation to ensure the authenticity of its passports.

Management is currently focused on the rapidly growing Australian, South East Asian, and Chinese markets.

Its focus is dairy, cannabis, alcohol and cosmetics where the viral growth of fake products, particularly in Asia, affects brand value and endangers consumers.

YPB’s technology has recently been adopted by one of Australia’s leading winemakers in Seppeltsfield.

YPB’s technology has recently been adopted by one of Australia’s leading winemakers in Seppeltsfield as the group strives to protect its premium products, particularly in export markets.

Suppliers receive protection and consumer data

The potential for sustained growth appears achievable given the benefits that YPB’s technology offers, as well as the vast size of the markets that it could tap into.

YPB’s Connect platform is sold to customers on a monthly subscription SaaS offering that complements the use of ProtectCodes which are sold on a per unit basis in connection with other YPB anti-counterfeit product markers.

As YPB’s markers are applied to more products the usage of the Connect platform continues to grow.

The Connect platform receives data from consumer scans and provides subscribing brands with detailed information and reports on their end-consumer behaviours including the location, timing and other purchasing information that significantly adds to their market knowledge.

Commenting on the significance of these developments, as well as underlining the opportunities that are likely to stem from the release of the group’s new Motif Micro technology, YPB chief executive John Houston said, "We were delighted when YPB reached the 75 million codes issued milestone in May 2019, and now more so that we have exceeded 100 million codes issued.

“This uptake of ProtectCodes and Connect completely validates the time and investment into our Connect SaaS platform.

“It also validates the rapidly growing need for product authentication and when Motif Micro is released commercially it will perfectly complement that revolutionary product.”



General Information Only

S3 Consortium Pty Ltd (S3, ‘we’, ‘us’, ‘our’) (CAR No. 433913) is a corporate authorised representative of LeMessurier Securities Pty Ltd (AFSL No. 296877). The information contained in this article is general information and is for informational purposes only. Any advice is general advice only. Any advice contained in this article does not constitute personal advice and S3 has not taken into consideration your personal objectives, financial situation or needs. Please seek your own independent professional advice before making any financial investment decision. Those persons acting upon information contained in this article do so entirely at their own risk.

Conflicts of Interest Notice

S3 and its associated entities may hold investments in companies featured in its articles, including through being paid in the securities of the companies we provide commentary on. We disclose the securities held in relation to a particular company that we provide commentary on. Refer to our Disclosure Policy for information on our self-imposed trading blackouts, hold conditions and de-risking (sell conditions) which seek to mitigate against any potential conflicts of interest.

Publication Notice and Disclaimer

The information contained in this article is current as at the publication date. At the time of publishing, the information contained in this article is based on sources which are available in the public domain that we consider to be reliable, and our own analysis of those sources. The views of the author may not reflect the views of the AFSL holder. Any decision by you to purchase securities in the companies featured in this article should be done so after you have sought your own independent professional advice regarding this information and made your own inquiries as to the validity of any information in this article.

Any forward-looking statements contained in this article are not guarantees or predictions of future performance, and involve known and unknown risks, uncertainties and other factors, many of which are beyond our control, and which may cause actual results or performance of companies featured to differ materially from those expressed in the statements contained in this article. S3 cannot and does not give any assurance that the results or performance expressed or implied by any forward-looking statements contained in this article will actually occur and readers are cautioned not to put undue reliance on forward-looking statements.

This article may include references to our past investing performance. Past performance is not a reliable indicator of our future investing performance.