Cyclopharm Limited

 

CYC Details
 
Revenues up 5% Year over year in FY19: Cyclopharm Limited (ASX: CYC) is involved in producing and supplying the medical profession with proprietary lung radiopharmaceuticals.
 
FY19 Operational Highlights for the Period ended 31^st December 2019: CYC declared its FY19 results, wherein the company reported sales revenue of $14.1 million, as compared to $13.4 million reported in the year-ago period. During the period, loss after tax amounted to $2.9 million, as compared to a net loss of $35k reported in the year-ago period. Geographically, revenue share from North America, Asia Pacific and Europe & Others accounted for 18%, 19% and 63%, respectively. Gross margins as a percentage of sales came in at 82.5% in FY19, up from 81% reported in FY18.During the period, the company remained on track to finalise New Drug Application to obtain USFDA’s nod to market and distribute Technegas® in the United States. The company exited the period with a cash balance of $12.7 million. Net cash used in operating activities stood at $0.49 million in FY19, as compared to a cash outflow of $1.1 million in FY18.
 

FY19 Key Highlights (Source: Company Reports)
 
COVID-19 Impact: The company’s new drug Technegas® is mainly utilised to diagnose the Pulmonary Embolism (PE) illness. The company is witnessing increase in the usage of Technegas® to differentiate between Covid-19 and Pulmonary Embolism.
 
What to Expect: In FY20, the company aims to focus on improving and expanding its quality systems and processes, in order to meet compliance benchmarks, including the USFDA and the new European Medical Device Reporting requirements.As the company progresses to get an approval from the USFDA to market Technegas(R) in the US market, it intends to invest in building inventory and sales capabilities to accelerate rapidly into the market.
 
Stock Recommendation: The stock of CYC is trading at $1.2 per share with a market capitalization of ~$90.76million. The stock made a 52-week low and high of $0.7 and $1.505 and is currently trading at the upper band of the range. The stock has corrected ~12.78% and ~3.33% in the last three months and six months, respectively. Current ratio of the company stood at 5.64x in FY19 as compared to the industry median of 2.77x, which reflects that the company is in a decent position to address its short-term obligations against the broader industry. Gross margin stood at 79.4% in FY19, higher than the industry median of 71.2%. On the valuation front, the stock is trading at a P/BV multiple of 3.9x as compared to the industry median of 2.0x on TTM (Trailing Twelve Months) basis. Therefore, considering the above mentioned factors and current trading levels, we have a watch stance on the stock at the current market price of $1.20 per share, up 3.448% on 6 April 2020.

 
CYC Daily Technical Chart (Source: Thomson Reuters)
 

Monash IVF Group Limited

MVF Details

COVID-19 Update: Monash IVF Group Limited (ASX: MVF) is engaged in providing assisted reproductive services and ultrasound services. On 1 April 2020, the company informed the market that it has deferred the payment of the interim dividend until 2 October 2020, subject to COVID-19 developments and the financial position of the company during the crisis. In another update, the company stated that it supports the Fertility Society of Australia, to postpone the fertility treatment in order to ensure public safety and well-being amid COVID-19 outbreak.
 
MVF Withdraws FY20 Guidance: On 20 March 2020, the company withdrew its FY20 outlook amid the rising uncertainty due to coronavirus outbreak. The company earlier expected NPAT for FY20 to be in the range of $18.0 Mn to $19.0 Mn.
 
Other Recent Updates: Recently, the company announced that Jangho Health Care Australia Pty Ltd (JHCA) has become a substantial shareholder of the company, with voting power of5.01%.
 
1HFY20 Key Highlights for the Period ended 31^st December 2019: MVF declared its half-yearly results, wherein the company reported revenues of $77 million, as compared $77.2 million reported in the year-ago period. Organic Revenue went up by 3.7% outside of Victoria in 1HFY20. Adjusted EBITDA for the period came in at $16.8 million, down 13% year over year. Adjusted net profit for the period came in at $9.1 million, down 15.3% year over year. The company exited the period with cash and cash equivalents of $5 million. Net cash inflow from operating activities stood at $10.8 million in 1HFY20, as compared to a cash inflow of $15.8 million in 1HFY19.
 

1H20 Financial Highlights (Source: Company Reports)
 
Valuation Methodology: Price to Book based Relative Valuation Approach

Price to Book based Relative Valuation Approach (Source: Thomson Reuters)
 
Note: All forecasted figures and peers have been taken from Thomson Reuters, NTM-Next Twelve Months
 
Stock Recommendation: The stock of MVF is trading at $0.465 with a market capitalization of ~$102.57million. The stock made a 52-week low and high of $0.38 and $1.535 and is currently trading at the lower band of the range. The stock has corrected ~57.56% and ~58.17% in the last three months and six months, respectively. We have valued the stock using P/B based relative valuation method and arrived at a target price with a limited upside (in percentage terms). For the purpose, we have taken the peer group - Virtus Health Ltd (ASX: VRT), Healius Ltd (ASX: HLS) and Capitol Health Ltd (ASX: CAJ), to name few. Hence, considering the COVID-19 impact, withdrawal of FY20 outlook and current trading levels, we have a watch stance on the stock at the current market price of $0.465 per share, up by 6.897% on 6 April 2020.

 
MVF Daily Technical Chart (Source: Thomson Reuters)

Disclaimer

The advice given by Kalkine Pty Ltd and provided on this website is general information only and it does not take into account your investment objectives, financial situation or needs. You should therefore consider whether the advice is appropriate to your investment objectives, financial situation and needs before acting upon it. You should seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice) as necessary before acting on any advice. Not all investments are appropriate for all people. Kalkine.com.au and associated pages are published by Kalkine Pty Ltd ABN 34 154 808 312 (Australian Financial Services License Number 425376). The information on this website has been prepared from a wide variety of sources, which Kalkine Pty Ltd, to the best of its knowledge and belief, considers accurate. You should make your own enquiries about any investments and we strongly suggest you seek advice before acting upon any recommendation. Kalkine Pty Ltd has made every effort to ensure the reliability of information contained in its newsletters and websites. All information represents our views at the date of publication and may change without notice. To the extent permitted by law, Kalkine Pty Ltd excludes all liability for any loss or damage arising from the use of this website and any information published (including any indirect or consequential loss, any data loss or data corruption). If the law prohibits this exclusion, Kalkine Pty Ltd hereby limits its liability, to the extent permitted by law to the resupply of services. There may be a product disclosure statement or other offer document for the securities and financial products we write about in Kalkine Reports. You should obtain a copy of the product disclosure statement or offer document before making any decision about whether to acquire the security or product. The link to our Terms & Conditions has been provided please go through them and also have a read of the Financial Services Guide. On the date of publishing this report (mentioned on the website), employees and/or associates of Kalkine Pty Ltd do not hold positions in any of the stocks covered on the website. These stocks can change any time and readers of the reports should not consider these stocks as personalised advice.