Stocks’ Details
 

Quantify Technology Holdings Ltd

Bringing a change to the IoT landscape: Quantify Technology Holdings Ltd (ASX: QFY), an Australia-based company that develops hardware and software devices for monitoring and management of the next generation of Internet-enabled devices, such as lighting, power, heating and cooling systems installed in buildings, has now integrated the Amazon Alexa voice technology, using Amazon Echo products into its patented product called the Q Device. The integrated product, which is in beta testing, is added to Quantify Technology’s demonstration apartment in Sydney for being viewed by prospective partners and clients. The group will make the product available through the recently announced distribution deal with Harvey Norman Commercial NSW & ACT. This will open up opportunities in varied verticals such as healthcare and retirement living, and is expected to bring a change to IoT (internet of things) landscape. The stock rallied up over 12.9% on November 16, 2017. Given that the group needs to move to positive return on equity zone while potential looks high, we give a “Speculative Buy” at the current price of $0.07
 

Freelancer Ltd

Solid Non-China volume: Freelancer Ltd (ASX: FLN) reported that their Escrow.com opened the public beta for the API enabling websites, marketplaces and classifieds sites to integrate the most secure payment method. In third quarter of 2017, the group’s cash receipts enhanced 2% on a year on year basis to $9,854k (In USD). Escrow Gross Payment Volume (GPV) rose 6% to A$114m (US$90M) (unaudited) in the third quarter of 2017 as compared to the second quarter of 2017. Non-China volume surged 14% Quarter on Quarter in USD during the third quarter of 2017, which was the strongest quarterly growth in five years. While there has been some positive momentum lately, the stock has fallen about 36% in last six months (as at November 15, 2017) owing to volatility and performance issues. We give a “Hold” recommendation on the stock at the current price of $0.54
 

Cash Receipts (Source: Company reports)
 

Empired Ltd

Huge market opportunity: Empired Ltd.’s (ASX: EPD) revenue from multi-year contracts contributed 66% of overall revenue in 2017, showing that the group has a solid predictable revenue. The group derived strong growth from NSW sales growth and Auckland which rose 32% and 67%, respectively. EPD sees an ongoing WA growth even in the first quarter of 2018, while their East Coast market’s performance is on track. The group believes that they have a $30+ Billion market opportunity and are forecasting a positive revenue and earnings growth in FY18. EPD also clarified the recent ASX query regarding the securities trading activity. We rate the stock a “Speculative Buy” at the current price of $0.53
 

EPD multi-year contracts (Source: Company reports)
 

Nearmap Ltd

Focusing on US market: Nearmap Ltd (ASX: NEA) is expanding their addressable market as their United States business has entered the growth stage of development in FY17. The group’s Annualised Contract Value (ACV) portfolio exceeds $50 million, as at October 2017. The US business had generated revenue of $4.3 million in FY17 driven by rising subscription portfolio. The group’s Australian business also delivered a solid growth in FY17 with revenue rising 22% on a yoy basis. The group started investment in HyperCamera2 technology and the roll-out has now commenced; and the next generation HyperCamera2 systems are making oblique imagery available to customers. The group started the higher value 3D products from oblique imagery and is targeting a 50% of US population coverage and the six major metropolitan cities in Australia. NEA stock rose over 48.9% in the last six months (as of November 15, 2017) and we believe this momentum will continue in the coming months. We give a “Buy” recommendation on the stock at the current price of $0.69
 

Netcomm Wireless Ltd

Solid contracts at hand: Netcomm Wireless Ltd (ASX: NTC) has three major contracts at hand, which include Ericsson/nbn Fixed Wireless that is currently producing revenue and nbn FTTC ramp-up that is expected during the first half of FY18. The group also expects to ramp up their US Fixed Wireless during FY18. NTC is debt free and well positioned to fund the growth objectives. The group is pursuing multiple global Fixed Wireless opportunities, with a major focus on the US and Europe. While the group expenses have been said to increase going forward, NTC’s revenue mix is expected to drive performance. We give a “Buy” recommendation on the stock at the current price of $1.16
 

Bravura Solutions Ltd

Consolidating presence in the corporate retirement savings technology: Bravura Solutions Ltd (ASX: BVS) signed a long-term contract with Discovery Limited which is a major South African listed financial services organization, for implementing their Sonata platform. The group intends to leverage the Discovery presence in 16 countries spanning North America, the United Kingdom, Europe, and Asia, in health administration and managed care, long and short-term insurance, asset management, savings, investments and employee benefits. This deal would consolidate Bravura’s presence in the corporate retirement savings technology market. On the other hand, BVS stock already rallied over 22.3% in the last six months (as of November 15, 2017) placing the stock at a slightly high price to earnings level. We give an “Expensive” recommendation on the stock at the current price of $1.70, and would review it later for further positive catalysts.
 

Altium Ltd

Tracking well to roll-out Nexus: Altium Ltd (ASX: ALU) is aiming for more than 10% growth in revenue for FY18 along with expansion of their EBITDA margin. The group is targeting over US$200 million revenue and EBIDTA margin of at least 35% in 2020. ALU will also roll-out their high-end PCB product, Nexus, in FY18 and launch enterprise level solution sales. The group is aiming to scale up the license compliance operations in China to underpin growth of over 20% each year. Meanwhile, ALU stock rallied over 55% in the last three months (as of November 15, 2017) and has been at an unreasonable level now. We give an “Expensive” recommendation on the stock at the current price of $12.73
 

Milestones (Source: Company reports)
 

WiseTech Global Ltd

Acquired Cargoguide and CargoSphere: WiseTech Global Ltd (ASX: WTC) tripled their revenue as well as enhanced their EBITDA six times in the last five years. Over these years, the group has invested $167 million in their innovation pipeline while added over 3,000 product enhancements to their global platform. WTC made >12 acquisitions across Australia, Brazil, China, Germany, Italy, the Netherlands, North America, South Africa and Taiwan.  Recently, they acquired two global rate management solution providers: Cargoguide, a Netherlands-based provider of global air freight rate management solutions, and CargoSphere, a global ocean freight rate management solutions provider. On the other hand, WTC stock rallied over 106% in this year to date (as of November 15, 2017) and looks “Overvalued” at the current price of $11.70, considering the acquisitions and other growth aspects factored in the rally.

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