Yojee Limited
YOJ Details
Decent Growth in Q1FY21 Revenue: Yojee Limited (ASX: YOJ) is a cloud-based Software-as-a-Service logistics platform, which manages, tracks and optimises freight movements along the entire logistics chain. The market capitalisation of the company stood at $213.36 million as on 9th November 2020. For the quarter ended 30th September 2020 (Q1 FY21), the company reported revenue of $218k, reflecting growth of 89% from Q4 FY20, as multinational client deployments begin to go live. During the quarter, the company inked a 3-year subscription agreement with A P Moller Maersk group subsidiary. In the same period, the company recorded a growth of 38% (QoQ) in cash receipts to $198k.
Revenue Growth (Source: Company Reports)
Outlook: During FY21, the company expects volume growth to translate into sustainable recurring revenue growth as well as a growing global presence. The company is scheduled to conduct its 2020 Annual General Meeting on 27th November 2020.
Stock Recommendation: In the month of October 2020, the company finished capital raising of $20 million, which witnessed decent support from new sophisticated investors and funds. As of 30th September 2020, the company had a cash balance of $3.4 million. The stock of YOJ has moved up by 589.65% in the last six months and as a result, the stock of YOJ is inclined towards its 52-week high level of $0.290. On a TTM basis, the stock is trading at a price to book value multiple of 23.3x as compared to the industry average of 14.6x. We have considered 14-day RSI and default values have been used. After careful consideration, it was observed that the stock is currently at overbought zone. Hence, we expect a marginal fall in the stock price in the coming times. On a technical analysis front, the stock of YOJ has a support level of ~$0.164 and a resistance level of ~$0.25. Thus, considering the current trading level, steep price movement in the few months and RSI levels, we advise investors to book profit and give a “Sell” rating on the stock at the current market price of $0.205 per share, up by 5.128% on 9th November 2020.
YOJ Daily Technical Chart (Source: Refinitiv, Thomson Reuters)
Knosys Limited
KNO Details
Stable Recurring Revenue: Knosys Limited (ASX: KNO) is engaged in computer software sales, licencing and development. The market capitalisation of the company stood at $23.81 million as on 9th November 2020. During Q1 FY21, the company continued its track record of producing a stable base of recurring revenue and currently has an annual run rate of $3 million. This was mainly supported by long term enterprise customers on multi-year contracts. The company reported customer receipts of $2.1 million and positive net cashflow of $1.1 million. During the quarter, the company witnessed new business opportunities in the enterprise segment and mid-market.
Key Metrics (Source: Company Reports)
Outlook: Looking forward, the company is committed to develop a leading SaaS information management business. In addition, KNO has started the process of expanding its Board with appropriate talent to oversee the next growth phase of the business. The company is likely to conduct its 2020 Annual General Meeting on 25th November 2020.
Stock Recommendation: As on 30th September 2020, the cash balance of the company stood at $3.4 million. On TTM basis, KNO has EV/Sales multiple of 7.0x as compared to the industry median (Technology) of 5.7x. The stock is trading at a price to book value multiple of 9.2x against the industry median (Technology) of 4.6x on TTM basis. The stock has surged 111.53% and 142.64% in the last three and six months, respectively. We have also considered 14-day RSI, and default values have been used. After careful consideration, it was observed that the stock is currently at overbought zone, hence we expect a marginal fall in the stock price in the coming times. On a technical analysis front, the stock of KNO has a support level of ~$0.092 and a resistance level of ~$0.17. Thus, in light of the higher valuations, RSI levels and upside movement in the stock within past few months, we suggest investors to book profit and give a “Sell” rating on the stock at the current market price of $0.160 per share on 9th November 2020.
KNO Daily Technical Chart (Source: Refinitiv, Thomson Reuters)
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