SDI Ltd

SDI Details
Restructuring Business: SDI Limited (ASX: SDI) reaffirmed its sales guidance for 12 months ending 30 June 2017 and expects 10% growth in non-amalgam sales while amalgam sales growth is expected to be flat. The group expects net profit after tax of about $2m to $2.5m compared with $3m for first half of FY16. This is owing to seasonality issues while skew in earnings is expected to favor second half of the year. SDI had reported a 22% growth in the profit after tax to $7.6 million in FY 16. The profit included $0.6 million of one-off restructuring costs and intellectual property write-down. SDI is restructuring the European operations with strong growth in the Whitening and Glass Ionomer product range. SDI has been in the process of consolidating its Irish and German Companies with the view of having one European company located in Germany. SDI expects that this would control the operating costs and strengthen the SDI’s presence in Europe.

 

FY 16 Financial Performance (Source: Company Reports)
 
Moreover, SDI had announced about implementing LEAN processes across the manufacturing operation and is investing further in growing the South American and North American markets. Meanwhile, SDI stock has risen 7.09% in the last six months as on January 31, 2017. Trading at a reasonable P/E, we give a “Speculative Buy” recommendation on the stock at the current price of – $ 0.75

 
SDI Daily Chart (Source: Thomson Reuters) 

ICSGlobal Ltd

ICS Details
Targeting growth via acquisitions: ICSGlobal Ltd (ASX: ICS) delivered a solid FY16 performance, with revenue growth of 27% while profit after tax attributable to shareholders jumped up by 16%. Medical, billing and collection revenue rose by 20% to £2,421,759 and profit (before tax and internal charges) improved by 33% to in excess of £760,000.

 

FY16 Performance (Source: Company Reports)
 
The group is expanding their medical clinics to the portfolio via acquisitions. On the other hand, ICS is exposed to movement in the £/$A, and accordingly in FY 17, ICS expects net profit after tax to be in the range of $0.7-$1.1m. ICS stock rose over 16.4% in the last four weeks as on January 27, 2017 and still trading at attractive valuations. We give a “Speculative Buy” recommendation on the stock at the current price of – $ 1.63

 
ICS Daily Chart (Source: Thomson Reuters) 

HiTech Group Australia Ltd

HIT Details
Rise in FY16 operating revenue: HiTech Group Australia Ltd (ASX: HIT) reported for 22.4% increase in the operating revenue in FY 16. The net profit after tax is $2,171,768 in FY 16 as compared to $807,721 in FY15 on the back of an increase in contracting revenue, and this indicated a rise of 168.9%. Moreover, in FY 17, the company’s expected revenue, gross profit and operating profit for the first half of FY2017 will be 10-20% higher than prior corresponding period (pcp), but this is slightly lower than expectations.
 

Growth Strategy (Source: Company Reports)
 
HIT stock has already risen 27.27% in the last six months as on January 30, 2017. We give an “Expensive” recommendation on the stock at the current price of – $ 0.59

 
HIT Daily Chart (Source: Thomson Reuters) 

Stargroup Ltd

STL Details
Acquisition of Indue Limited’s business: Stargroup Ltd (ASX: STL) is yet to settle the acquisition of the Indue Limited Automatic Teller Machine (ATM) switching, settlement, processing, telecommunications and reseller business while all agreements have been executed. STL has also executed an agreement for a debt facility totaling $15 million to fund the Indue acquisition. Additionally, the group announced that year-to-date 2016 witnessed an ATM revenue growth of 218% while the total group revenue for 2016 half year improved by 206% as compared to the same period previous year. The group also witnessed a 36% rise in quarterly revenue (as of January 06, 2017) over prior quarterly revenue, and 31% increase in projected Q1 2017 revenue on back of further organic growth. STL plans for paying a fully franked maiden dividend of $0.001 per share in June 2017, representing an annual yield of about 6.67%. Meanwhile, STL stock has risen 15.63% in the last six months as on January 31, 2017 while, we give a “Speculative Buy” recommendation on the stock at the current price of – $ 0.037

 
STL Daily Chart (Source: Thomson Reuters) 

Uscom Ltd

UCM Details
BP+ Detects New Evidence of Cardiovascular Disease: Uscom Ltd (ASX: UCM) has notified the market with the publication of a new multi-centre study focusing on the use of Uscom BP+ suprasystollic oscillometric central blood pressure monitor. The study was authored by experts from several reputed institutes. Moreover, UCM has manufactured record numbers of USCOM 1A devices for the month of December 2016 and for the first half of FY 2017 to meet orders into Chinese, European and US clinical markets. In addition, UCM has finished the manufacturing of their 1,000^th USCOM 1A cardiovascular monitor. The group has witnessed 29% rise in record receipts for the quarter ended December 31, 2016 over the previous quarter while the net operating cash consumption fell by 84%. On the other hand, UCM stock has fallen 26.87% in the last six months as on January 31, 2017 due to concerns over their growth in their target markets, US and China, given the volatile conditions and rising competition. In fact, the stock slipped about 6% on February 01, 2017. The group’s SpiroSonic devices are being prepared for FDA (US) and CFDA (China) application but UCM expects a slower pathway for CFDA. We give an “Expensive” recommendation on the stock at the current price of – $ 0.23

 
UCM Daily Chart (Source: Thomson Reuters)

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 currently hold positions in:  BHP, BKY, KCN, PDN, and RIO. These stocks can change any time and readers of the reports should not consider these stocks as advice or recommendations.