Ziptel Ltd


ZIP Details

Efforts to expand penetration in Tier 1 and Tier 2 markets: Ziptel Ltd (ASX: ZIP) in its fourth quarterly review of FY 16 reported that they intend to target the Tier1 and Tier 2 countries to grow their penetrations. Accordingly, ZIP has focused Consumer business strategy for Zipt 2.0, and worked with the Enterprise Partner to deploy the SpeedTalk Enterprise Application. ZIP has made a progress with regard to agreements with companies in key industries which require low bandwidth, calling and messaging solutions, especially the maritime, airlines and remote communications providers. Moreover, the group has already achieved 10 million Zipt installs which is 9-months earlier as per its commercialization strategy as of November 2014. Meanwhile, the group got the refund of $1,102,383 as the tax incentive for R&D. For FY2016, an R&D refund of circa $2.6 million is expected as the claim will be lodged in early August 16. In addition, ZIP’s total net cash receipts is over $112,000 for Q4 FY 16 (Q3 FY 16: $142,000).
 

Financial Overview for Q4 2016 (Source: Company Reports)
 
ZIP is also focusing on $1 marketing spend to yield $1 of receipts. Additionally, Zipt is selected by Samsung as a Marquee App for Tizen Developers to deliver Tizen version of Zipt for August 2016 handset launch. We believe investors need to leverage the current low levels of the stock which has fallen 72.92% in the last six months (as of August 15, 2016). We give a “Speculative Buy” recommendation on the stock at the current price of $0.135
 

ZIP Daily Chart (Source: Thomson Reuters)
 
Mobile Embrace Limited


MBE Details

Expansion of DCB: Mobile Embrace Limited (ASX: MBE) has exceeded the EBITDA guidance in FY 16 and reported an 86% year on year (yoy) growth to $9.5 million while Earnings per share rose by 58% to 1.26 cents per share. Moreover, MBE is expanding its international Direct Carrier Billing (DCB) operations into Norway via a new agreement with Telenor Digital. Telenor Digital would provide MBE complete market coverage of Norway’s 5.8 million mobile subscribers. This means that there is a significant carrier billing opportunity to the group as 84% of Norway’s mobile subscribers are postpaid customers and the territory has high ARPU (average revenue per user). Moreover, MBE has partnered with Telenor Pakistan to expand international DCB operations. With regard to an unresolved litigation, the company has denied the claim that it owes GBD an amount of about $3.5 million for a digital video advertising agreement. Meanwhile, the stock has risen 9.84% in the last six months (as of August 15, 2016) and we give a “Speculative Buy” recommendation on the stock at the current price of $0.33
 

MBE Daily Chart (Source: Thomson Reuters)
 
iCar Asia Ltd


ICQ Details

Downgrade in forecasts: iCar Asia Ltd (ASX: ICQ) estimates its full-year 2016 revenue to be in the range of A$6.75m to A$7.75m (up to 23% year on year growth) while the EBITDA loss would be in the range of (A$14.50m to A$15.50m). ICQ has decreased its forecasts due to the decision by the company to invest more aggressively in consolidating its leadership position across each of its current markets given the rise in competition. The revenue is also adversely impacted by the weaker macro conditions in Malaysia, Thailand and Indonesia and the currency weakness has reduced the volume of used car imports. Moreover, there was an ASX price query in June 2016. Accordingly, ICQ stock has fallen 49.40% in the last six months (as of August 15, 2016). But the overall economic conditions seem to improve slightly which could drive the group to deliver a better performance than estimated. ICQ earlier updated about its quarterly cash collections growing 45% year-on-year to A$1.903m. We give a “Speculative Buy” recommendation on the stock at the current price of $0.41
 

ICQ Daily Chart (Source: Thomson Reuters)
 
Reffind Ltd


RFN Details

Challenges in the US market but positive forecast: Reffind Ltd (ASX: RFN) reported the growth of 14% in cash receipts from the recurring SAAS revenue in the quarter ending 30^th June 2016. The expenditure is due to the investment in new hires for the sales and operational roles as well as ongoing in-house development of products. Moreover, the total customers are now 93 as on 30^th June 2016 comprising 45 RFN customers and 48 WooBoard customers. RFN has launched the US business and is working on the new prospects database. RFN has set up an additional development and support centre in the Philippines to augment its core software development in Australia. On the other hand, the group has been facing challenges to establish sales funnel and brand awareness in the US as it is a new market, to integrate the Philippines team. RFN has not generated the synergies as expected in both product functionality and cross sales by the acquisition of the WooBoard acquisition. But the group is expecting an increase in revenue and new bookings going into the next quarter and expects its first client wins in the US. RFN also expects the ongoing expenditure to reduce in the next quarter in line with a reduction in overheads. Meanwhile, RFN stock has fallen 86.33% in the last six months (as of August 15, 2016). We give a “Speculative Buy” recommendation on the stock at the current price of $0.067
 

RFN Daily Chart (Source: Thomson Reuters)
 
Vmoto Ltd


VMT Details

Increasing International Presence: Vmoto Ltd (ASX: VMT) has sold 20,261 units in the second quarter ending 30^th June 2016 as compared to 22,041 units in 2Q 2015. The group was able to fulfill shipments for an order to a significant European supermarket group that has over 300 stores in Europe.
 

Sales Performance for second quarter of 2016 (Source: Company Reports)
 
VMT has launched the marketing campaign “Ride Your Way” in Australia through online social media to drive traffic to Vmoto’s internet based online sales platform to offer electric vehicle products. Additionally, VMT has made the market entry, distribution and customer opportunities for North America, Netherlands, France, Mexico, Nepal, Thailand, Uruguay and Sri Lanka. VMT also has a mutually-exclusive agreement to supply Vmoto’s electric scooters equipped with LOOPShare Ltd’s platform and software for its operations worldwide and the recent listing of LOOPShare on TSX Venture Exchange in Canada is beneficial for VMT. We give a “Speculative Buy” recommendation on the stock at the current price of $0.17
 

VMT Daily Chart (Source: Thomson Reuters)
 
zipMoney Ltd


ZML Details

Strong fourth quarter Performance: zipMoney Ltd (ASX: ZML) reported the transaction volume in excess of $10 million for each month in the fourth quarter of 2016. ZML has generated more than $50 million that was originated on platform to date. The company has quarter on quarter revenue growth of more than 200%. ZML has also raised $20.6 million via successful placement to several leading institutional investors.
 

Fourth quarter of 2016 Performance (Source: Company Reports)
 
The company has continued investment in 100%-owned proprietary real-time, credit scoring technology. In addition, ZML has reported 187% growth in its loan book to $40.7 million on the previous quarter, on $32.9 million in transaction volume. Therefore, ZML has generated revenue of approximately $2.7 million up 234% on the previous quarter. ZML has also rolled out the zipPay to accelerate with a number of new iconic fashion brands. Moreover, the group clarified ASX query related with the price and the volume. Even though ZML stock has risen 128.79% in the last six months (as of August 15, 2016), we give a “Speculative Buy” recommendation on the stock at the current price of $0.78
 

ZML Daily Chart (Source: Thomson Reuters)

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