Stocks’ Details
 

CSG Limited

1H19 results to be declared on 21 Feb: CSG Limited (ASX: CSV) has reported that they will announce its results for the six months ended 31 December 2018 (H1 FY19) on Thursday 21 February 2019. A group investor conference call will be held that day at 10:30am AEDST.
 
For FY18, the company’s revenue fell by 8% & thus came in at $225.7 million. The degrowth in the revenue was on account of the lower than expected print equipment sales, primarily within the enterprise segment in Australia and production print in New Zealand.The revenue also got impacted because of lower display sales as compared to FY2017, on account of the change in the revenue recognition criteria. The Underlying EBITDA came in at $10Mn, exhibiting a 67% decline on account of the lower revenues & the additional investments made in the enterprise technology segment.

What to Expect From CSV: Going further, the company anticipates to return to the growth trajectory in the FY19. The company had performed in line with the plan till the month of October 2018. The company remains on track to deliver a working capital reduction of $10 million for FY19 through a reduction in inventory.


CSV’s FY18 performance (Source: Company Reports)

The company had reported a negative ROE of 106.90% for FY2018. Meanwhile, the stock's performance throughout its journey remains -60.59%. The 6-months' and 3-months' performance of the company are -33.92% and -14.29%, respectively as on 11 February 2019. Currently, it is trading close to a 52-week low level. By looking at the trading level since past one year and subdued performance in FY18, we have a watch view on the stock that trades at the current price of $ 0.160 (up 6.667% on 12 February 2019) and wait for the earnings report of 1HFY19 which will be revealed on 21 February 2019.
 

Afterpay Touch Group Limited

Stellar like for like sales growth: Afterpay Touch Group Limited (ASX: APT) has lately reported its key business developments. As per the update, the company registered an underlying sales in 1H FY19 of above $2.2 billion, up from $918 million in 1H FY18 (up 140%), with December 2018 the largest ever month on record for Afterpay. This rise was witnessed on the back of the holiday season’s underlying sales performance & growth in both online and in-store sales.
 
What to Expect From APT: As regards the outlook, the company is focused upon the retail revenue model & not upon the customer debt. The company will make enhancements in its model which will lead to the reduction in the late fee. Moreover, the company will strive towards long term value to the shareholders via maximizing total active customers and customer life time value.
 

APT’s FY18 Financial Highlights (Source: Company Reports)
 
Meanwhile, the stock price has risen by 20.11% in the past six months as on 11 February 2019 and trading slightly towards a 52-week higher level. On the analysis front, the company had reported a negative ROE of 10.40% and a negative Pre-tax margin of 13.30% for FY2018, however both the financial metrics have improved over the year. The company’s key margins are lower as compared to the industry median. APT’s net margin stood at -15.7% in FY 2018 while the industry median was 11.5% and the company’s EBITDA margin was -85.1% in FY 2018 as compared to the industry median of 35.6%. Given the backdrop of the above-mentioned factors and current trading level, we maintain our watch stance on the stock at the current price of A$17.80 per share (up 3.851% on 12 February 2019). 

Nearmap Limited

Robust growth in ACV: Nearmap Limited (ASX: NEA) posted its H1 FY 2019 numbers whereby, the Annualised contract value (ACV), which is considered the key growth metric, has grown strongly over during the period. The ACV grew ~42% on a YoY basis supported amply by a 107% growth in the US & 23% growth in Australia.

As regards the outlook, the company has stuck to its earlier stated guidance for FY19 to become cash flow break even excluding the effect of any capital raise. The company is a market leader in Australia and is gaining ample traction in its US business. The company is very well positioned for the long-term growth as the world market for the Geospatial mapping is expected to see expansion at a robust rate and thus expected to reach $4.5 Bn by the end of 2025.
 

NEA ‘s annualized contract value (Source: Company Reports)

Meanwhile, the stock price has risen by 57.14% over the past six months as on 11 February 2019. Hence, considering the strong traction seen U.S. geospatial mapping market & the stellar growth seen in the ACV’s along with its market-leading position in Australia, we maintain our “Hold” recommendation on the stock at the current market price of $2.33 (up 5.91% as on 12 February 2019).


 
Stock Price Comparative Chart (Source: Thomson Reuters)   
  

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