The Fastbrick Robotics Ltd (ASX: FBR) share price is heading in the right direction once again.
In afternoon trade the shares of the company behind the Hadrian X robotic bricklayer are up 2% to 24 cents.
Incredibly, this means that Fastbrick Robotics' shares are now up over 150% since the turn of the year.
Why have its shares rallied higher?
It certainly has been an eventful year for this exciting robotics company.
Things really kicked off for the company back in July when it announced a memorandum of understanding (MOU) with global construction equipment giant Caterpillar.
The MOU will see the two parties discussing and developing a potential framework for collaboration regarding the development, manufacturing, sales, and services of its Hadrian X bricklaying technology.
Furthermore, Caterpillar invested $2 million in Fastbrick Robotics via a placement of shares at 20 cents apiece. It also has the right to invest a further US$8 million at 20 cents per share in the future, should shareholders approve.
Having a company like Caterpillar promoting the technology to its global customer base is a fantastic achievement and I can't say I was surprised to see its shares rally on the news.
The company's shares were then given a further boost when it announced another MOU in August. This time the MOU was with the Kingdom of Saudi Arabia for the construction of a minimum of 50,000 new homes in the country by 2022 using Hadrian X robots.
According to the release, a construction project of this magnitude would require around 100 Hadrian X robots. Which at $2 million each could mean an order in the region of $200 million from the Kingdom.
Unsurprisingly this news sent its shares rocketing to an all-time high of 30 cents.
Should you invest?
Whilst it is undoubtedly a high risk investment and a lot of growth is built into its shares already, I do feel that the company has the potential to live up to expectations and more.
The technology is a clear winner in my opinion. It can lay 1,000 standard brick equivalents per hour, compared to 400 bricks per day by the average Australian bricklayer. This could cut the construction process down significantly, saving both time and money.
However, for now I would suggest investors keep the company on their watchlist and wait for the Saudi Arabian MOU to be signed and sealed before making a move.
