I think that the Australian share market is home to a great number of small-cap shares with significant growth potential.
Three small-caps which I think are worth keeping a close eye on are listed below. Here's why they have caught my eye:
Bubs Australia Ltd (ASX: BUB)
This infant formula and baby food company has signed a number of agreements in recent months with the likes of Brilite Nutritionals and NetEase Kaola.com. These deals have put the Bubs brand in front of millions of its target demographic in the massive China market. Whilst I think the company has positioned itself as best as it can to take on a2 Milk Company Ltd (Australia) (ASX: A2M) in China, only time will tell whether the brand resonates with consumers. I would suggest investors look out for its next quarterly update to see if there has been a notable lift in sales that justifies its current valuation.
Fastbrick Robotics Ltd (ASX: FBR)
I believe that this robotics company's Hadrian X bricklaying robot could be on the verge of disrupting the homebuilding industry. Hadrian X can lay 1,000 standard brick equivalents per hour, compared to the 400 bricks that a typical bricklayer lays per day. The company has US-giant Caterpillar as a strategic partner and recently announced a major memorandum of understanding to supply robots to build at least 50,000 new homes in Saudi Arabia. I estimate that this deal could be worth upwards of $200 million to the company.
SKY and Space Global Ltd (ASX: SAS)
This global communications infrastructure company plans to create a full Equatorial constellation of 200 of its nano-satellites in order to deliver cost-effective communications infrastructure and services to those who need it most and to disrupt the telecommunications and international transport industries. The technology has been tested extensively and successfully in space, allowing the company to commence strategic discussions with major telco and satellite companies. Management estimates the quantum of bandwidth generated by the full constellation has the potential to generate between US$600 million and US$1 billion in annual revenues.
