Freelancer Ltd

FLN Details
 
Several initiatives to drive growth: Freelancer Ltd (ASX: FLN) reported record cash receipts of $12.8 million, up 60% for Q1FY16. Its acquisition - Escrow.com registered 18% constant currency (USD) growth for the business during the quarter. Moreover, the Group has launched products in various mobile application including payment gateway, payment and support method for more markets including China.
 

Overall projects and contest listings (Source: Company Reports)
 
With new brand and website, StartCon, the group intends to further drive its revenues in coming period. FLN stock surged over 32.37% in the last four weeks alone (as of April 26, 2016) and we believe the strong growth momentum to continue in the coming months. We maintain our“Buy” recommendation at the current price of $1.555
 
 
FLN Daily Chart (Source: Thomson Reuters)
 
iSentia Group Ltd

ISD Details
 
Made new agreement with Copyright Agency:iSentia Group Ltd (ASX: ISD) reported a 22% revenue growth in H1FY16 to $76 million while EBITDA grew 19% and net profit soar 22%. Its Asia region reported 22% growth in revenues and EBITDA margin of 23%. The Group declared interim dividend of 3.7 cents per share. For FY16, the company guided revenue in the range of $155million to $158million and EBITDA in the range of $50million to $53million, indicating positive outlook for the company. The Group has also signed a new agreement with rights manager, the Copyright Agency, which delivers greater value to its clients in terms of providing high quality content from all the key publishers in Australia. This would help the group to retain as well as expand its client base. On the other hand, the stock is current trading at high P/E. We believe the stock is “Expensive” at the current price of $3.66
 
 
ISD Daily Chart (Source: Thomson Reuters)
 
NEXTDC Ltd

NXT Details
 
Impressive financial performance:NEXTDC Ltd (ASX: NXT) reported a strong 51% growth on revenues to $42.1 million for first half of 2016. Its contracted utilization increased 59% to 22.8 MW. EBITDA soared 279% to $11.4 million while net profit was at $0.6 million as compared to the loss of $5.8 million in H1FY15. The Company has raised $220 million via Notes II and issue of equity during H1FY16 to facilitate its growth targets.
 

Growth momentum continues (Source: Company presentation)
 
The management expects revenue growth of 40%-48% for FY16 and EBITDA growth of up to 250%. NXT plans a capex of $80 million to $100million. The stock rallied over 18.70% in the last three months (as of April 26, 2016) and we believe one should “Hold” the stock at the current price of $2.90
 
 
NXT Daily Chart (Source: Thomson Reuters)
 
TechnologyOne Ltd


TNE Details
 
Focusing on Cloud platforms:TechnologyOne Ltd (ASX: TNE) continuing its performance, reported 12% growth in revenues for FY15 while net profit grew 16%. The company has declared dividend of 6.78 cents and has reported ROE of 30%. The Group has also been investing heavily in its Cloud platforms. The investments have proven a short-term headwind for margins, although management recently commented that it expects the growth of cloud services to lift margins over the long term. The company’s core business is the provision of enterprise software services and it expects FY2016 to bring another strong year of growth due to increased demand. Much of the growth would also come from new clients, its cloud services business, the cross selling of products, and improvement in its UK operations.
 

Cloud growth outlook (Source: Company Reports)
 
This strong performance and outlook drove TNE by 29.37% (as of April 26, 2016) in the last six months placing the stock at very high valuations which is trading at a high P/E. Hence, we believe it is “Expensive” at the current price of $4.89
 
 
TNE Daily Chart (Source: Thomson Reuters)
 
NetComm Wireless Limited

NTC Details
 
Boosting capital position: NetComm Wireless Limited (ASX: NTC) reported 53.7% growth in revenues to $46.4 million for H1FY16 while EBITDA increased 123.5% and net profit grew 538.9% to $2.32 million. Recently, NTC also signed a master purchase agreement with a large USA based telecom to strengthen its global market position. Moreover, the group made a private placement of ordinary shares to raise $50 million to fund global growth initiatives. It is also raising an additional $10 million through share purchase plan. Going forward, the company plans to grow M2M revenues in overseas markets with a key focus on USA, Europe, Middle East and Japan. We recommend to “Hold” the stock at the current price of $2.92
 
 
NTC Daily Chart (Source: Thomson Reuters)
 
Altium Ltd


ALU Details
 
Partnerships and acquisitions to drive growth: Altium Ltd (ASX: ALU) reported 13% revenue growth for the first half of 2016 to $42.6 million and on-track to reach $100 million in 2017. AD Licenses sale increased by 23% while renewal rate increased from 84% to 87% in developed region. ALU declared interim dividend of 10 cents. During the period, the company partnered with Dassault Systemes SOLID WORKS to introduce a new line of electronic CAD products reinforcing Altium’s bid for market leadership. It also completed and integrated the acquired business of Octopart and Ciiva.
 

First half financial highlights and long term outlook (Source: Company Reports)
 
Furthermore, it has completed the largest multi-year TASKING deal with a tier 1 automotive supplier. The organic growth and benefits of acquisition will be reaped in near future. Meanwhile, Altium is also trading at attractive valuations with a reasonable P/E and decent dividend yield. In last six months, the stock generated over 42.33% (as of April 26, 2016) returns while we give a “Hold” on the stock at the current price of $6.25
 
 
ALU Daily Chart (Source: Thomson Reuters)
 
Data#3 Ltd


DTL Details
 
Strong dividend yield:Data#3 Ltd (ASX: DTL) reported a total revenue of $457.5 million, up 12.6% for the first half of 2016. The product revenue was up to $371.1 million while services revenue rose up by 12.9% yoy to $85.6 million. The revenue and gross profit growth drove net profit after tax (excluding minority interests) up by 19.2% yoy to $4.3 million. DTL announced an interim dividend of 2.5 cents per share, a 19% increase on the prior corresponding period. Recently, Data#3 has announced that it has joined the Global IT Alliance (GITA). The stock is currently trading at a reasonable P/E with a strong dividend yield. We recommend a “Hold” on the stock at the current price of $0.975
 
 
DTL Daily Chart (Source: Thomson Reuters)

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