Money3 Corp Ltd

Rising demand for secured automotive loans:Money3 Corp Ltd (ASX: MNY) reported a record half-year FY17 revenue of $51.7 million and profit of $13.7 million representing a rise of 9.1% and 37.7%, respectively over prior corresponding period. Gross loan book increased to $247 million during the period which is up from $199 million in the prior corresponding period. MNY reduced bad debts as a percentage of loan book from 3.5% in H1 2016 to 2.5% in H1 2017. For the strong performance, the company reported dividend of 2.5 cents and a dividend reinvestment program with a 5% discount. The company also reported a 6.5% reduction in expenses. During the reported period, the company finished online lending platform integration into Money3 platform. Strong demand for secured automotive loans in the first half has led to an increase in the gross loan book by $38.1 million, which is now 78% of the gross loan book. Going forward, Money3 estimates its target market in Australia for automotive loan of about 700,000 loans per annum with Money3’s current run rate of approx. 14,000 for the financial year. Money3 has also taken steps to enhance its current $30 million funding facility to up $50 million for strong growth of the secured automotive loans business. The company has also increased full year guidance to $27.5 million for NPAT. We recommend a “Hold” on the stock at the current market price of $ 1.60

dorsaVi Ltd 

Revenue rise and reduction in losses:dorsaVi Ltd.’s (ASX: DVL) stock surged 2.67% on March 16, 2017. The group recently reported that UK’s Network Rail Ltd will use group’s ViSafe for workplace safety assessments (understanding movement related with the work undertaken by its overhead contact system and track maintenance teams). The group is thus building a strong customer base. DVL had reported a 33.8% rise in revenues to $1.73 million for the first half of 2017 as compared to $1.29 million in the prior corresponding period. Its US customer revenue for the half year reached $518k which exceeded the full year US FY16 customer revenue of $454k. Moreover, DVL’s after tax loss of $1.26 million has reduced from $3.11 million in the prior corresponding period. The company has invested $714k in the six months to expand its product portfolio. DVL also raised $8 million wherein $5 million was received prior to December 2016 leading to a cash balance of $8.7 million as on December 2016. We recommend a “Speculative Buy” on the stock at the current market price of $ 0.38
 

Result Overview (Source: Company Reports) 

Onevue Holdings Ltd

Earning momentum:Onevue Holdings Ltd (ASX: OVH) reported a third consecutive quarter of positive cash flow with operating cash flow for the half of $1.1 million. OVH’s 1H 2017 revenue grew 50% to $18.5 million and has reported an EBITDA of $0.9 million as compared to a loss of $0.8 million for H1 2016. The company also reported a bottom-line of $0.3 million as compared to a loss of $2 million. Recurring revenue represents 92% of total revenues up from 89%.  Funds Services has won NAB 5-year contract while the group continued to build a strong new client pipeline. The company also said it is receiving Diversa synergies ahead of schedule. The stock has fallen 17.95% in last three months as at March 15, 2017, and considering the business growth, we rate the stock a “Buy” at the current market price of $ 0.47

Yowie Group Ltd

Affirmed revenue guidance:Yowie Group Ltd (ASX: YOW) reported a 67% growth in revenues from ordinary activities to US$9.59 million in the half year 2017 on the back of stronger sales performance from the rollout of Yowie Series 2 products in the U S market. However, there also has been a 45% increase in net loss after tax attributable to members owing to expenses. In the USA, the company noted a 65% rise in revenues to US$9.3 million while the group reaffirmed a revenue growth target for fiscal 2017 to be in 85% -90% range over the previous year. Further, Nielsen market share data report revealed a continued market share growth with xAOC Instant Consumable Chocolate share of 0.99 versus 0.93 and xAOC plus Convenience Store market share of 0.49 as compared to 0.46 on prior period 13-week measure. On a related note, YOW’s manufacturing volumes in January and February increased due to the consistent improvement in demand. The stock surged 8.3% on March 16, 2017 post a 22.9% fall in last one month as at March 15, 2017; and given the potential, we rate the stock a “Buy” at the current market price of $ 0.45

NEXTDC Ltd

Strong H1 2017 performance:NEXTDC Ltd (ASX: NXT) recently appointed Ms Sharon Warburton as a new board member. The group had reported a splendid 39% rise in revenues to $58.7 million in the first half of 2017 while reported a 110% rise in EBITDA to $23.9 million. NEXTDC data center services’ revenue rose by 36%. The strong growth was on the back of rise in customers by 23%, coupled with 42% rise in interconnections and 32% rise in utilization. NXT has invested $75.7 million in capital. Going forward, the company’s B2 and M2 projects are on track to achieve practical completion towards the end of H2 2017.  The company has S2 site under contract with development approvals in progress. As on December 2016, the company has cash and term deposits of $276.5 million.  Meanwhile, NXT raised $150 million of equity for S2 development and has $100 million senior debt facility with NAB. Further, the company also has option to refinance $160 million Notes I and II in June 2017 and every six months thereafter. We believe the growing network would continue to expand the group’s revenues and profit, and accordingly we recommend a “Hold” at the current market price of $ 4.00
 

Overall performance (Source: Company Reports) 

Dicker Data Ltd

Addition of new vendors: Dicker Data Ltd (ASX: DDR) announced FY16 final dividend (fully franked) of 4.40 cents per share. FY16 revenue was $1,185.5 million against 2015 revenue of $1077.6 million. DDR added a total of 8 new vendors on-board during 2016 and this contributed to an incremental $25.1 million. Gross profit for the reporting period was $109.7 million, up 6% from 2015 figure of $103.5 million. For FY17, DDR expects revenue growth just below 10% or $1.3 billion at the back of organic growth and full year contribution from new vendors. The stock has fallen 8.09% in last one month as at March 15, 2017. We maintain a “Hold” recommendation at the current price of $ 2.14

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