View in Other Languages 优品保集团有限公司(ASX:YPB)识别出多个墨西哥合资项目的市场机会 YPB Group Ltd (ASX:YPB) Identifies Mexican Joint Venture Market Opportunities 優品保集團有限公司(ASX:YPB)識別出多個墨西哥合資項目的市場機會 
YPB identifies Mexican JV market opportunities
YPB identifies Mexican JV market opportunities

Sydney, Mar 31, 2016 AEST (ABN Newswire) - YPB Group Limited (googlechartASX:YPB), upon entering a Joint Venture (JV) agreement with Affyrmx LLC in February 2016, has conducted a market analysis of the opportunity available with Mexican government departments and its ability to capture further business in this sector.

The JV has already produced two contracts for vital records with state governments in Mexico and a number of further potential revenue streams have been identified.

Total revenues disclosed are those to the JV, with YPB's portion being 50% of the gross revenue at an average gross margin of 45%-50%. All amounts following are in $USD.

VITAL RECORDS

Market Size

The estimated market size for vital records (birth, death, matrimony etc.), an opportunity on the federal and state levels, is an annual requirement of 50,000,000 to 60,000,000 documents, generating potential revenues of $7.2 million-$8.8 million.

Opportunity

YPB management believes that within three years it can capture 35% to 40% of this market. In the first full year of operation to the end of FY 2017, the company expects to be able to book orders for at least 10 million documents with revenue of $1.45 million to $1.75 million.

VISAS

Market Size

The estimated annual requirement for visas is 1.2 million - 1.3 million documents. The visa program is administered by the Mexican Secretariat of Foreign Affairs (Secretaría de Relaciones Exteriores) ('SRE").

Opportunity

YPB's JV partner held the contract to produce "paper visas" until 2014 when these were replaced with an "e-visa". 2016 will see the reintroduction of printed visas and YPB is well placed to secure a new multi-year agreement to produce these. It is expected such a deal will generate revenue of $700,000 to the JV over an initial two-year term.

LOTTERY TICKETS

Market Size

The Mexican National Lottery, Loteria Nacional, has an estimated market of 20-30 million tickets per year (not including scratch-off tickets). We estimate that the supply contracts for these tickets would generate estimated annual revenues of between $5.8 million-$7.6 million.

Opportunity

YPB's JV partner is accredited and equipped to supply the Loteria Nacional and intends to bid for the supply of tickets during the second half of 2016.

ID CARDS

Market Size

The SRE buys an estimated 10-12 million ID cards each year, generating revenue to the supplier of $20-$25 million. The Government of Mexico issues an ID card, which bears a photograph and address outside of Mexico of the Mexican National to whom it is issued, these ID cards allow Mexican Nationals to work in the USA.

Opportunity

YPB's JV partner intends to bid for this contract late in 2016.

EMISSION CERTIFICATES

Market Size

Most Mexican states issue vehicle emission certificates, which are a security windshield sticker for a mandatory bi-annual vehicle emission test. The estimated number of certificates supplied is 20-25 million units each year, with estimated revenue of $11.5-$14.5 million per annum.

Opportunity

YPB's JV partner intends to bid for the supply of Mexican emission certificates in the second half of 2016 and by year 2 YPB expects to secure 30% of the annual supply of these certificates.

To view the release, please visit:
http://abnnewswire.net/lnk/683G3UC7


About YPB Group Ltd

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Contact

Mr. John Houston
CEO
T: +61-458-701-088
E: john.houston@ypbsystems.com

Mr. Robert Whitton
CFO and Company Secretary
T: +61-457-666-309
E: rob.whitton@ypbsystems.com

W: www.ypbsystems.com



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