SportsHero Limited

Finalisation of Partnership with PSSI: SportsHero Limited (ASX: SHO) had announced the finalisation of comprehensive and exclusive, strategic multi revenue stream partnership with Football Association of Indonesia which is the governing body of football in Indonesia and is known as PSSI and is 100% owned as well as controlled by Indonesian Government. SportsHero, in partnership with PSSI, would be developing a white-label exclusive digital platform in order to include its existing gamification platform, social media, merchandise/e-commerce, game highlights as well as player access. Also, the newly developed PSSI app, powered by SportsHero, would soft launch in June 2019 for 2018/2019 Piala Cup Playoffs.


Income Statement for Half-year ended December 2018 (Source: Company Reports)

The company posted net loss amounting to US$941,653 in the half-year ended December 2018 while in the same period of the previous year the figure stood at US$2,741,530.

What To Expect From SHO: As mentioned in the 2018 annual report, the company has built localised network in Indonesia and they are also looking to develop as well as replicate that model in other jurisdictions and other sports. The company also stated that sport franchisees and sponsors globally are looking for new ways to connect with and expand their fan bases into the new geographic markets and increasingly technology driven market segments.

Stock Recommendation: The company witnessed significant improvement in its key margins in 1H FY 2019 on the YoY basis which further strengthens the confidence in the company’s business activities. Also, the company’s stock price is trading slightly towards the 52-week lower side which provides a decent opportunity to buy. The company’s stock has delivered the returns of -39.17% and -51.33% in the span of the previous three months and six months, respectively.

Considering the above-mentioned factors along with current trading level, we give a “Speculative Buy” recommendation on the stock at the current price of A$0.082 per share (up 12.329% on 24 April 2019).  
 

Core Lithium Ltd

Release of DFS for Finniss Lithium Project: Core Lithium Ltd (ASX: CXO) had released the definitive feasibility study (or DFS) for Finniss Lithium Project. The DFS confirms that the company is well-positioned to be next lithium producer in Australia. The company’s development of Finniss Lithium Project is initially based on the development of Ore Reserves within high-grade Grants and BP33 deposits as standard open pit mining operations and construction of a simple 1Mtpa DMS process plant to produce up to 180,000 tpa of high-quality lithium concentrate with the robust operating margins. 


Key DFS Outputs (Source: Company Reports)

The company posted net loss amounting to $1,067,248 in the six months to December 2018 while in same period of the previous year the figure was $1,326,325. In the six months ended December 2018, Core Lithium raised $2.4 million with the help of share placement to progress the lithium projects.

What To Expect From CXO: As mentioned in 2018 annual report, the likely developments consist continued exploration and drilling of key prospects at Finniss. Core Lithium would be identifying as well as evaluating numerous other projects and opportunities. 

Stock Recommendation: From the valuation standpoint, the P/B ratio of Core Lithium stood at 1.27x which is lower than the peer mean of 1.98x reflecting that the stock is slightly undervalued at the current juncture. Also, the stock price is trading slightly towards the 52-week low and, thus, is providing a decent opportunity to make an entry. However, in the past three months, the stock delivered the return of -8.93%.

Considering the above factors, we give a “Speculative Buy” rating on the stock at the current price of A$0.048 per share (down 5.882% on April 24, 2019).  

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