The benchmark S&P/ASX 200 Index (ASX: XJO) continues its downward run on Monday after starting the session poorly. It is now tracking 76 basis points lower at 7,057 points, down almost 5% for the year.
Amid the downward pressure, one ASX share is shining above the rest today and is now trading 60% higher in the morning session.
Shares in Structural Monitoring Systems PLC (ASX: SMN) have exploded out of the gates today after being in a trading halt since 21 January. They're now fetching $1.09 apiece.
Investors are responding positively to a company announcement this morning regarding usage approval for its CVM [comparative vacuum monitoring] Sensor technology.
Image source: Getty Images
Why's this ASX share charging so hard today?
Market pundits are piling into the company today after it advised the US Federal Aviation Administration (FAA) granted authority to issue Supplemental Type Certificate (STC) approval for its CVM Sensor technology.
Structural Monitoring says the technology is now approved on the B737-800 Intelsat (Gogo) Wi-Fi antenna support structure inspection.
According to the company, the approval marks an incredible milestone in the world of aviation and is poised to make flying potentially safer for us all. This approval marks an extraordinary milestone in aviation history, the first-ever world regulatory agency approved sensor technology validated and certified for detecting critical structural cracks on aircraft.
"The certification of CVM sensors to detect cracks on aircraft is expected to meaningfully impact the
industry maintenance inspection methods," the announcement said.
"Inspections can be performed more routinely, plus the sensor eliminates the need to remove ceiling panels and pneumatic ducting to gain access for various safety checks."
In fact, Structural Monitoring says that inspections using the technology can be performed "at the gate during a turn-around in approximately 30 minutes, as opposed to taking the aircraft to the hangar to perform the inspections".
The company says it will now be putting its efforts into getting the technology ready and able for as many airline fleets as possible.
"Now that SMS has an FAA certified product available on the market, our team will be assessing all factors related to the current airline operating environment," it said.
"This includes current aircraft fleet compositions, aircraft utilisation information and other factors which airlines rely upon to assess their cost benefit analysis for use of CVM technology."
As a result, investors are seeing green today, sending shares north of 60% higher on a volume of more than 1,000% higher than the company's 4-week trading average.
Management commentary
Speaking on the announcement, the company's head of business development and marketing executive vice president Rich Poutier said:
This industry-first approval of SMS's structural health monitoring technology granted by the FAA is validation of the tremendous efforts put forth by the entire team. We are excited to pave the way and expand the commercial market with our highly innovative CVM sensor technology.
How has this ASX share performed?
In the last 12 months, the Structural Management Systems share price has soared more than 166% and it is also up 79% this year to date.
As a result of the gain seen on the back of today's announcement today, the company is now trading at its 52-week high as well.
During the past month of trading alone, shares have surged more than 86% and, it's safe to say, SMS is now comfortably outperforming the benchmark index so far in 2022.
