eMARINE Global (OTCQB: EMRN) generates millions of dollars in revenue annually providing industry-leading technology solutions to some of the world’s largest shipbuilders.

Based in Busan, South Korea, eMARINE’s customers included Hyundai, Samsung, STX, and DSME, four of the 10 largest shipbuilders in the world with a combined $71 billion in annual revenue.

The company’s innovative technology underpins the new wave of smart ships currently in development that are transforming how the maritime industry operates.

eMARINE is also a major technology provider to the Korean Navy and Coast Guard. Its solutions have been installed on more than 200 Korean Navy vessels over the last ten years and the company continues to provide ongoing maintenance of these systems with regularly renewed contracts.

Trading for less than 1x its trailing 12-month sales and with double-digit revenue growth, eMARINE’s stock is extremely undervalued relative to a typical growth stock’s metrics, creating a great opportunity for investors that buy in before the company becomes more well known on Wall Street.

EMRN grew revenue 56% year-over-year to $1.4 million in its most recent quarter, ended September 30, 2019.

Strong revenue growth, combined with meaningful cost reductions, enabled EMRN to record operating income of more than $567,000 in its most recently reported quarter.

Looking forward, with the expansion of the company’s coastal surveillance business through several Vessel Traffic System (VTS) projects and the continued rollout of its autonomous ship solutions for public and private sector customers, EMRN management expects substantial revenue growth in the fourth quarter compared to the prior year period.

The latest VTS project was just announced in February 2020. eMARINE was selected as the preferred bidder for the $14 million project and is working with a consortium of systems integrators and leading multi-national defense companies, including SAAB and Terma A/S.

“Our partnership with SAAB was a key driver to our success in securing this project,” stated Dr. Ung Gyu Kim, Chairman and CEO. “Combined with the Incheon VTS project we won in 2019, eMARINE is quickly solidifying its competitive position in the maritime surveillance market, which has been dominated by another Korean company over the past several decades. We are now changing the game by bringing cutting-edge, innovative technologies to the market.”

Combined with its ongoing development work with Hyundai Heavy Industries (HHI) and other major customers, we believe this backdrop provides the company with significant potential to generate growth in 2020 and beyond as the multi-billion-dollar maritime industry converts from analog to digital.

The global seaborne shipping industry moves an estimated 90% of world trade and is on the cusp of a revolution as great as its move from sail power to steam nearly two centuries ago.

In a few short years, unmanned ships are expected to begin moving silently across the world’s oceans like drones, delivering cargo faster, safer, and cheaper.

The world’s first autonomous cargo vessel Yara Birkeland launched in 2019, and while crew will man the ship for a trial period, it is expected to be fully automated this year.

In this new age of shipping, piracy could become history, as autonomous vessels would be harder to board and have no visible control point such as a navigational bridge. If somehow hijacked, they could be locked down remotely or made to steam to safer waters.

Bad weather can also be mitigated via Dynamic Positioning and Global Navigation Satellite systems that automatically make finite adjustments to ships propellers, rudders and thrusters, optimizing safe handling in rough seas and eliminating human error caused by fatigue or misjudgment.

eMARINE’s smart ship technology is at the tip of the spear of this revolutionary change.

At the core of EMRN’s products offering is the company’s smart-ship technology such as its Intra-Ship Integrated Gateway (ISIG).

Consisting of both hardware and software, the main function of ISIG technology is to send data collected from a ship or fleet via smart-sensing technology to control operators on land.

EMRN currently supplies approximately 50 ISIGs to HHI alone each year, and the numbers are growing.

In June 2019, the company announced the expansion of its work with HHI. After installing its sensor technology on a growing number of HHI-built vessels, eMARINE is now developing a new Remote Maintenance System (RMS) for new build ships delivered by the world-leading shipbuilder.

The RMS system will enable ship owners to remotely monitor navigation status, weather conditions, engine operation status, and other critical system operations on a 24/7 basis, providing anytime anywhere access and setting the state for the future of autonomous ship operations.

“The development of an RMS platform for Hyundai further secures our leadership position in the growing Marine IoT (Internet of Things) and smart-ship technology space,” stated Ung Gyu Kim, Chairman and CEO. “We look forward to deepening our relationship with Hyundai as we work together to develop a smart ship application that delivers customer satisfaction and the value-added features the market demands.”

EMRN’s RMS platform is part of a larger suite of technology offerings that includes its flagship electronic chart and display system (ECDIS), a technology the company has installed on 411 vessels to date, including 215 Korean naval ships.

The company has an ongoing contract with the Republic of Korea Navy for maintenance of its installed technology, providing a recurring revenue stream on top of its initial technology sales.

Furthermore, the company’s proximity and working relationship with the world’s leading shipbuilders places it in a prime position to be a leader in the coming revolution of autonomous shipping.

EMRN grew revenue 56% year-over-year to $1.4 million in its most recent quarter, ended September 30, 2019.

Strong revenue growth, combined with meaningful cost reductions, enabled EMRN to record operating income of more than $567,000 in the third quarter.

Looking forward, with the expansion of the company’s coastal surveillance business through several Vessel Traffic System (VTS) projects and the continued rollout of its autonomous ship solutions for public and private sector customers, EMRN management expects substantial revenue growth in the fourth quarter compared to the prior year period.

Combined with its ongoing development work with HHI and other major customers, we believe this backdrop provides the company with significant potential to generate growth in 2020 and beyond as the multi-billion-dollar maritime industry converts from analog to digital.

As a relatively unknown stock trading on the OTC Markets, EMRN remains thinly traded as of today. And this creates a tremendous opportunity for investors to own the stock at an extremely low valuation.

The key to success with thinly traded small caps like this is to own before a larger audience takes notice. Once trading activity begins to increase, investors on the sideline begin to jump in at higher and higher prices. You don’t want to be the person chasing the stock at the point, you want to be in before it happens.

The stock currently trades for less than 1x its trailing 12-month sales, despite a track record of double-digit growth and a pipeline of new business that could accelerate that growth even further.