Authorised Investment Fund Limited

AIM Launches Travel Elite in China – A key Catalyst: Authorised Investment Fund Limited (ASX: AIY) is micro-cap company with the market capitalisation of circa $34.5 Mn as of January 02, 2019. The group provides passive equity capital to small and medium-sized Australian companies. The company invests in various sector such as pharmaceuticals, energy, and manufacturing. Moreover, the company also invests in innovative firms who have great potential to further. Investment in pooled development funds helps the investors to enjoys reduces corporate tax up to 15% on income and zero capital gain tax payable by them.

Recently, the company has received a letter from Asian Integrated Media Pty in which it mentions that AIM launched Travel Elite in China, which will help them exploring US$258 billion outbound tourism market. This initiative is expected to escalate the topline growth in mid to long-term as AIM has full access across all the major trading platform.

During FY18, net loss de-grew by 72.8% and amounting to $531,411 as compared to prior year. It was favourable because of the rise in investment fair value adjustment during the same period. The financial assets in FY 2018 came in at $9.12 Mn vs. $0.096 Mn in FY 2017, a significant increase owing to investments in the ordinary issued capital of various entities. The company generated positive net cash flow of $92,998 in FY 2018 as compared to $10,092 in FY 2017. The increase is however driven by a reduction in net loss coupled with the increase in trade payables and inflow from arm’s length transaction in FY 2018. The company has increased operating lease commitment within the next two years. The current ratio stood at 0.30x in FY18.


FY18 P&L Statement (Source: Company Reports)

Meanwhile, the share has risen 183% in the past six months as at January 02, 2019 and is trading below the average of 52 weeks high and low level of $0.0905. In the past one month, the stock price climbed up 240%, owing to the positive development related to launching of travel elite in China market. On the technical analysis front, the stock is positioned towards the upper band of the Bollinger band and is yet to be positioned in a favourable zone given the Relative Strength index scenario (RSI). We suggest to investors that they should keep a close watch on the stock and wait for further developments in the company.

Disclaimer
 
The advice given by Kalkine Pty Ltd and provided on this website is general information only and it does not take into account your investment objectives, financial situation or needs. You should therefore consider whether the advice is appropriate to your investment objectives, financial situation and needs before acting upon it. You should seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice) as necessary before acting on any advice. Not all investments are appropriate for all people. Kalkine.com.au and associated pages are published by Kalkine Pty Ltd ABN 34 154 808 312 (Australian Financial Services License Number 425376). The information on this website has been prepared from a wide variety of sources, which Kalkine Pty Ltd, to the best of its knowledge and belief, considers accurate. You should make your own enquiries about any investments and we strongly suggest you seek advice before acting upon any recommendation. Kalkine Pty Ltd has made every effort to ensure the reliability of information contained in its newsletters and websites. All information represents our views at the date of publication and may change without notice. To the extent permitted by law, Kalkine Pty Ltd excludes all liability for any loss or damage arising from the use of this website and any information published (including any indirect or consequential loss, any data loss or data corruption). If the law prohibits this exclusion, Kalkine Pty Ltd hereby limits its liability, to the extent permitted by law to the resupply of services. There may be a product disclosure statement or other offer document for the securities and financial products we write about in Kalkine Reports. You should obtain a copy of the product disclosure statement or offer document before making any decision about whether to acquire the security or product. The link to our Terms & Conditions has been provided please go through them and also have a read of the Financial Services Guide. On the date of publishing this report (mentioned on the website), employees and/or associates of Kalkine Pty Ltd do not hold positions in any of the stocks covered on the website. These stocks can change any time and readers of the reports should not consider these stocks as advice or recommendations.