1. Yojee Limited (Recommendation: Speculative Buy, Market Cap: ~$148.57 Million)

Decent Revenue Growth in Q3FY21: Yojee Limited (ASX: YOJ) operates a cloud-based software as a service (SaaS) logistics platform that services the logistics market at both the SME and enterprise levels.

• For the quarter ending 31 March 2021, the company reported cash receipts from customers of $332k, up 42% on Q2FY21. Further, the revenues from ordinary activities (trade) grew 36% over the previous quarter to $278k. Over the quarter, the company made decent progress on all key fronts including hub implementation, revenue growth, customer satisfaction and network advantages.
• Cash and Debt Scenario: As at 31 December 2020, the company had cash and cash equivalent of $21.14 million, up from the cash balance of $4.31 million as at 30 June 2020, mainly due to the share placement of $20.0 million from institutional and sophisticated investors in September 2020. During the March 2021 quarter, the cash position was slightly reduced to $19.75 million. Contract liabilities as at 31 December 2020 stood at $182.1k. Current ratio for H1FY21 stood at 24.96x, compared to 4.50x in pcp.
• Outlook: The company is currently focused on developing its embedded growth beyond its current Logistics Hubs in APAC over the next 3 years across 14 targeted countries in APAC. So far, it has received positive feedback from its existing enterprise clients from its platform deployments and expects this to result in identification of further opportunities in countries within their global operations. The company expects to sign new agreements and undertake additional deployments of its Platform through the calendar year 2021.

A Pictorial Presentation of Key Metrics:

SWOT Analysis:

Stock Recommendation:

• The stock has corrected by 35.71% in the last six months and is trading lower than the average 52-weeks price level band of $0.026 and $0.290, offering a decent opportunity for accumulation.
• The company currently has a decent pipeline of new enterprise countries and is in advanced discussion with all existing Enterprise Clients for expansion Enterprise Projects.
• Key Risks: Technology Disruption, Foreign Exchange Risks, Fluctuations in Logistics Demand
• Considering the rise in the company’s cash receipts and revenue during Q3FY21, expected revenue growth in the coming quarters, current trading level and associated key risks, we give a “Speculative Buy” recommendation on the stock at the current market price of $0.135 as on 14 May 2021.

YOJ Daily Technical Chart (Source: Refinitiv, Thomson Reuters) 

2. 4DS Memory Limited (Recommendation: Speculative Buy, Market Cap: ~$184.93 Million)

Progressing the Development of Second Platform Lot: 4DS Memory Limited (ASX: 4DS) is a semiconductor development company of non-volatile memory technology, pioneering Interface Switching ReRAM for next generation gigabyte storage in mobile and cloud.

• For H1FY21, the company reported revenue from ordinary activities of $29.4k. Total comprehensive loss for the half-year stood at $3.1 million. For the March 2021 quarter, the company reported net operating cash outflow of $0.986, down from $1.118 million in the December quarter due to the decrease in research and development expenditure by $243K and a slight increase in administration and corporate costs of $27k. During the March 2021 quarter, the company announced an additional USA patent bringing the Company’s portfolio of granted USA patents to thirty (30).
• Cash and Debt Scenario: As at 31 December 2020, the company had cash and cash equivalent of $6.52 million, up from $2.5 million as at 30 June 2020. Cash balance was reduced to $5.5 million in March 2021 quarter. As at 31 December 2020, the company had a debt of $298k. Current ratio for H1FY21 stood at 12.45x, up from 2.0x in H2FY20. Debt to equity ratio for H1FY21 stood at 0.08x, down from 0.36x in HFY20.
• Outlook: The company has confirmed that the production of the Second Platform Lot is on schedule. The Results from this Second Platform Lot are expected late in Q2 2021. With research & development facilities in Silicon Valley California and patented IP portfolio, comprising 30 USA patents granted and 2 patent applications pending and being filed, the company seems well placed to address the massive memory demands of tomorrow.

A Pictorial Presentation of Key Metrics:

SWOT Analysis:

Stock Recommendation:

• The stock has corrected by 26.31% in the last three months and is trading lower than the average 52-week price level band of $0.042-$0.280, offering a decent opportunity for accumulation.
• The company is now focused on the analysis of the Second Platform Lot to pursue its strategic objective of commercialising the Company’s technology.
• Key Risks: Changes in Technology, Delay in the grant of IP Patents, COVID-19 Uncertainties
• Considering the grant of additional patent, increasing cash balance, positive results from second non-platform lot, current trading level, and key risks associated with the business, we give a “Speculative Buy” recommendation on the stock at the current market price of $0.140 as on 14 May 2021.

4DS Daily Technical Chart (Source: Refinitiv, Thomson Reuters)

3. Douugh Limited (Recommendation: Speculative Buy, Market Cap: ~$69.64 Million)

Decent Rise in Customers: Douugh Limited (ASX: DOU) is a purpose-led fintech focused on making the world financially healthier, helping customers better manage their money. The company uses individual banking data to provide tailored financial solutions.

• For Q3FY21, the company reported 259% QoQ growth in its customers for Douugh platform, demonstrating that the customers are seeing real value in the money management tool. Over the quarter, the company successfully rolled out its proprietary self-driving money management feature The company has recently completed the acquisition of millennial investing fintech Goodments. For H1FY21, the company reported a loss of $5.43 million.
• Cash and Debt Scenario: As at 31 December 2020, the company had cash of $16.02 million, up from $172k as at 30 June 2020. Total contract liabilities and borrowings stood at $330k and $3,520, respectively in H1FY21.
• Outlook: Looking ahead, the company is focused on launching new features in its platform to accelerate growth. Further, the company is fast-tracking the launch of its integrated wealth management service and monthly subscription in the US. In the second half of FY21, the company expects to see an acceleration of overall growth metrics.

Number of Customers Signed up to Douugh Platform (Source: Company Reports) 

SWOT Analysis:

Stock Recommendation:

• The stock has corrected by 58.99% in the last three months and is trading lower than the average 52-week price level band of $0.048 and $0.490, offering a decent opportunity for accumulation.
• The company is planning to make some key enhancements to the Goodments App to accelerate its growth.
• Key Risks: COVID-19 Uncertainties, Fraud Risk, Competitive Risk, etc.
• Considering the rising cash balance, increasing customers, anticipated benefits from the acquisition of Goodments, current trading level and associated key risks, we give a “Speculative Buy” recommendation on the stock at the current market price of $0.105, as on 14 May 2021.

DOU Daily Technical Chart (Source: Refinitiv, Thomson Reuters) 

Note: Investment decision should be made depending on the investors’ appetite on upside potential, risks, holding duration, and any previous holdings. Investors can consider exiting from the stock if the Target Price mentioned as per the Valuation has been achieved and subject to the factors discussed above.

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