Praemium Ltd

Moving on track post surpassing $8.5 billion FUA in September quarter: Down 5.8% on December 10, 2018, Praemium Ltd (ASX: PPS) gradually seems to move to a buying opportunity zone. The group’s performance has otherwise been driven by organic growth and stability. The technology led platform progression for managed accounts has been stupendous. This led the group report a decent FY18 result with 22% revenue growth and 21% gross margin growth. The group during the September quarter witnessed combined quarterly gross inflows of $645 million, which is the fifth highest on record. This comprised of the Australian gross inflows of $466 million, which is also the fifth highest on record and International gross inflows of $179 million, with the fourth consecutive quarter above £100 million.
 
The company for the September quarter has posted the Funds under administration (FUA) of $8.6 billion, which reflects 29% growth in FUA over the past 12 months, despite declining global equity markets in September and outflows from the Smartfund range of funds. Moreover, during the September 2018 quarter, FUA into the Australian retail superannuation offering (SuperSMA) had crossed $1 billion for the first time with a 43% increase in FUA over the past one year. There has been a significant rise in pension schemes in the International business. This has almost doubled in the past 12 months to 666 schemes. There has been growth of Self-Invested Personal Pensions (SIPPs) on the in-house UK platform from 135 schemes as at 30 June 2018 to 354 schemes at the end of September. Meanwhile, PPS stock has fallen 31.34% in three months as on December 07, 2018. The stock is trading at the price of level $0.65, and earlier witnessed a support around $0.66 and resistance at $0.85. Based on the scenario while the stock price has been on a downtrend despite a decent performance, we give a “Hold” recommendation on the stock at the current price of $ 0.65.


September Quarter 2018 Performance (Source: Company Reports)
 

OneVue Holdings Ltd

Decent Growth Performance for the first quarter of FY 19: Superannuation platform provider, OneVue Holdings Ltd (ASX: OVH) for the first quarter of FY 19, has reported Fund Management Admin of $491.6b, FUT (funds under trusteeship) of $12.1b and Super Member Admin of $4.8b. The company witnessed 4% growth in FUA on previous quarter and 7% on prior corresponding period. OVH has posted the  gross quarterly inflows of $312m, up 3.6% on previous quarter and taking inflows to over $1.4b for the last 12 months. Items processed in the first quarter of FY 19 were up 15% on previous quarter and up 63% on pcp. The company has added nine new funds in the quarter and the total funds now stand at 950, up 24% on pcp. The numbers  of members were up 2% on previous quarter and 64% on pcp. The group now aims to have 20% EBITDA margin exit run-rate for FY20. OVH expects to benefit from growth in managed accounts sector with support falling in line from new business opportunities.
 
Meanwhile, OVH stock has fallen 31.25% in three months as on December 07, 2018  and is trading at a P/E of 20.37x. The stock is trading at the price of level $0.545, and has support at $0.52 and resistance at $0.68. Based on the foregoing, we give a “Hold” recommendation on the stock at the current price of $ 0.545 and is watched for momentum expected in future.
 
 

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