Holista CollTech Limited (ASX: HCT)

Based in Australia, HCT was incorporated in 2000 and is involved in developing, researching, manufacturing, and marketing health styles products like Supplements, Ovine collagen, Food ingredients, and Infection control.

Business and H1FY22 Financial Update – Announced on 21 April 2022, Holista received an initial order for GI Lite™ for Berjaya Starbucks Coffee Malaysia Sdn Bhd and 80Less™ sugar reduction substitute of Country Farms Sdn Bhd for the modern trade customers. In H1FY22, the revenue hiked by 13% to a record high of $8 million, with ¾ of Holista’s businesses contributing to the growth. Net loss before tax improved to $1.2 million from $5.6 million in FY21. Dietary Supplements remained a significant contributor to the improved results, showcased by an 18% sales increase to $6.2 million.

Technical Analysis: HCT prices have declined drastically after breaking the upward sloping trend line by the downside. Prices are now getting reversal signs as the prices witnessed a bullish dozi candlestick pattern last month, indicating that bears are losing stock grip. RSI (14-period) is hovering at ~59.92 level on a daily chart, indicating the stock is trading in bullish momentum. Immediate support levels appear to be at AUD 0.032 and AUD 0.025, while immediate resistance levels are AUD 0.057 and AUD 0.063.

Stock Recommendation: The stock of HCT gave a negative return of ~24.528% in the past year. The stock is currently trading lower than the 52-weeks average price level band of $0.070 - $0.031. Given the decent top-line improvement, positive outlook, initial order from GI Lite™, current trading levels, and key risks associated with the business, we give a “Speculative Buy” recommendation on the stock at the closing market price of $0.040, up by ~2.564%, as of 21 April 2022. Markets are trading in a highly volatile zone currently due to certain macro-economic issues and geopolitical tensions prevailing. Therefore, it is prudent to follow a cautious approach while investing.

Daily Technical Chart – HCT

Source: REFINITIV

Holista CollTech Limited (Company) is a client of Kalkine Media Pty Ltd (Kalkine Media), an affiliate of Kalkine. However, under no circumstances have Kalkine or its related entities been, directly or indirectly influenced in making any related insights concerning Company as contained in this report, and no form of compensation is or will be received by Kalkine, Kalkine Media or Kalkine’s other related entities for the publication of this report.

JB Hi-Fi Limited (ASX: JBH)

JB Hi-Fi Limited is an Australia-based company engaged in retailing home consumer products. The company operates via three segments: JB Hi-Fi New Zealand (JB NZ), The Good Guys (TGG), and JB Hi-Fi Australia (JB Aust).

H1FY22 Financial Update – Sales momentum stood robust with continued heightened customer demand for home appliances and consumer electronics. Total sales stood at $4.86 billion, down by 1.6% YoY and up by 21.7% over two years. Online sales have picked pace with a 62.6% YoY increase, clocking $1.1 billion, representing 22.7% of total sales. EBIT stood firm at $420.5 million, down by 9.1% YoY but up by 59.9% across two years, driven by high sales growth, increased gross margins, and disciplined cost-saving measures.

Technical Analysis: JBH prices have significantly increased in the past two months after the prices broke the downward sloping trend line by upside Prices are now getting resistance of another upward sloping trend line that indicates profit booking might occur in the stock in the coming period. RSI (14-period) is trading in a moderate zone at ~47.39 on a daily chart that indicates indecision in the prices. Immediate support levels are AUD 48.50 and AUD 45.80, while immediate resistance levels are AUD 56.85 and AUD 60.00.

Investors can evaluate the stock based on the support and resistance levels provided in the report in case of keen interest taking into consideration the risk-reward scenario.

Considering the company’s current price levels with resistance and falling revenues, investing in this stock at such uncertain levels should be taken with a calculated approach; hence a ‘Watch’ stance is suggested. The stock was analysed as per the closing price of AUD 51.240 per share, down by ~0.890%, as on 21^st April 2022.

Daily Technical Chart – JBH

Source: REFINITIV

Note 1: The reference data in this report has been partly sourced from REFINITIV.

Note 2: Investment decisions should be made depending on the investors’ appetite for upside potential, risks, holding duration, and previous holdings. Investors can consider exiting the stock if the Target Price mentioned as per the Valuation has been achieved and subject to the factors discussed above.

Technical Indicators Defined: -

Support: A level where-in the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest.

Resistance: A level where the stock prices tend to find resistance when they are rising, and the uptrend may pause due to profit booking or selling interest. 

The Green colour line reflects the 21-period moving average. SMA helps to identify existing price trends. If the prices are trading above the 21-period, then it shows prices are currently trading in a bullish trend (Vice – Versa).

The Blue colour line reflects the 50-period moving average. SMA helps to identify existing price trends. If the prices are trading above the 50-period, then it shows prices are currently trading in a bullish trend (Vice – Versa).

The Yellow colour line represents the Trendline.

The Purple colour line in the chart’s lower segment reflects the Relative Strength Index (14-Period), which indicates price momentum and signals momentum in trend. A reading of 70 or above suggests overbought status, while a reading of 30 or below suggests an oversold status.

Disclaimer - This report has been issued by Kalkine Pty Limited (ABN 34 154 808 312) (Australian financial services licence number 425376) (“Kalkine”) and prepared by Kalkine and its related bodies corporate authorised to provide general financial product advice. Kalkine.com.au and associated pages are published by Kalkine.

Any advice provided in this report is general advice only and does not take into account your objectives, financial situation or needs. You should therefore consider whether the advice is appropriate to your objectives, financial situation and needs before acting upon it.

There may be a Product Disclosure Statement, Information Statement or other offer document for the securities or other financial products referred to in Kalkine reports. You should obtain a copy of the relevant Product Disclosure Statement, Information Statement or offer document and consider the statement or document before making any decision about whether to acquire the security or product.

You should also seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice) as necessary before acting on any advice in this report or on the Kalkine website. Not all investments are appropriate for all people.

The information in this report and on the Kalkine website has been prepared from a wide variety of sources, which Kalkine, to the best of its knowledge and belief, considers accurate. Kalkine has made every effort to ensure the reliability of information contained in its reports, newsletters and websites. All information represents our views at the date of publication and may change without notice.

Kalkine does not guarantee the performance of, or returns on, any investment. To the extent permitted by law, Kalkine excludes all liability for any loss or damage arising from the use of this report, the Kalkine website and any information published on the Kalkine website (including any indirect or consequential loss, any data loss or data corruption). If the law prohibits this exclusion, Kalkine hereby limits its liability, to the extent permitted by law, to the resupply of services.

Please also read our Terms & Conditions and Financial Services Guide for further information.

On the date of publishing this report (referred to on the Kalkine website), employees and/or associates of Kalkine and its related entities do not hold interests in any of the securities or other financial products covered on the Kalkine website unless those persons comply with certain safeguards, procedures, and disclosures.

Kalkine Media Pty Ltd, an affiliate of Kalkine Pty Ltd, may have received, or be entitled to receive, financial consideration in connection with providing information about certain entity(s) covered on its website.