Dongfang Modern Agriculture Holding Group Ltd 


DFM Details
 
Good harvest result: Dongfang Modern Agriculture Holding Group Ltd (ASX: DFM) reported a 26% rise in revenues backed by good harvest leading to a rise in production by 20% of Camellia products to 240,000 tonnes. Normalized profit before tax surged by 30% to $90 million. DFM has also announced dividend of 5 cents per share exceeding the prospectus forecast.
 

Gross Profit and Net Assets (Source: Company Reports)
 
The Group also has zero debt and its net assets are in excess of $347 million, well positioned to expand the business in near future. Furthermore, the Group intends to leverage the contribution by change in Chinese demographic in terms of rise in disposable income and dietary shift towards fruits and vegetables supporting the demand growth.  DFM’s CEO, Ming Sing Barton resigned while CFO, Chiu So took over the CEO role. Meanwhile, the DFM stock surged by 46.71% (as of April 22, 2016) in the last four weeks and rose by 96% during this year to date placing them at unreasonable valuations. The stock has been added in the All Ordinaries Index as per the S&P Dow Jones Indices March 2016 Quarterly balance. However, we believe the stock is “Expensive” at current price of $2.32
 
 
DFM Daily Chart (Source: Thomson Reuters)
 
MainstreamBPO Ltd


MAI Details
 
Business acquisition contributions promise a positive outlook :MainstreamBPO Ltd (ASX: MAI) recently reported that its Funds under Administration reached $84 billion. MAI’s FundBPO also made a five years unit registry outsourcing contract. This contract is to offer registry services for over $25 billion in funds under administration and estimated to generate over $7.5 million in new revenue.
 

First half of 2016 performance (Source: Company Reports)
 
The group also acquired the Asia-Pacific hedge fund administration business of Alter Domus at $1.4 million, which would expand its business in Asia. On the other side, MAI reported 25% rise in revenues to $8.8 million for first half of 2016 while net income increased 154% to $0.3 million. Management expects that the company is well positioned to meet its FY16 prospectus forecast. MAI surged over 46.51% in the last six months (as of April 22, 2016) while we place a “Speculative Buy” at the current price of $0.63
 
 
MAI Daily Chart (Source: Thomson Reuters)
 
Wonhe Multimedia Commerce Ltd 


WMC Details
 
Ongoing internet proliferation: Wonha Multimedia Commerce Ltd (ASX: WMC)  is leveraging the rapidly growing use of broadband and accordingly positioning to take the advantage of China’s expanding middle class and growing mobile internet participation with its flagship product YLT300-S Router. China has 632 million active Internet users and is the fastest growing e-commerce market. Accordingly, WMC is expanding into new regions and widening its scope to sign more lucrative contracts with State Owned Enterprises. WMC’s subsidiary made an agreement with Guangdong Kesheng Enterprise Co., Ltd to develop a wireless network that will serve as a vehicle for advertising and marketing.
 

Guangdong Kesheng assured fixed amount payments to Shenzhen Wonhe (Source: Company Reports)
 
The group also delivered a decent financial performance and for year ended in December 2015, it reported revenues of $22.1 million while net profit reached $5.9 million. On the other hand, given the slowdown conditions in China, the stock corrected over 52.59% during this year to date (as of April 22, 2016) and we believe the negative sentiment in the stock to continue in the coming months.  Hence, we give “Expensive” recommendation at the current market price and would review the stock at a later date $0.275
 
 
WMC Daily Chart (Source: Thomson Reuters)
 
JC International Group Ltd 


JCI Details
 
Decent financial performance: JC International Group Ltd (ASX: JCI) reported 60% increase in revenue to $55.5 million backed by the strong contracted project income during the fiscal year of 2015. Profit after tax was at $ 7.04 million as against $5.93 million in FY14. On the other side, the company was listed on the ASX on March 23, 2016, while issued an additional 6.98 million fully paid shares at $0.80 each. But management said that after considering ASIC Regulatory guide 170, they might face pressure in its future earnings. However, JCI stock delivered an outstanding performance since its listing and rallied over 17.78% till date despite this wary update by the group (as of April 22, 2016). However, we issue the stock an “Expensive” recommendation at current price of $1.055
 
 
JCI Daily Chart (Source: Thomson Reuters)
 
Stavely Minerals Ltd


SVY Details
 
Ararat project and acquisition contribution are the key drivers:Stavely Minerals Ltd (ASX: SVY) recently reported that its current quarter net operating cash flows entailed outflow of $189,000 while year-to-date entailed $1,296,000 and cash at the end of the quarter was $1,939,000. SVY acquired a new gold-copper project in North Queensland through acquisition of a private company Ukalunda Pty Ltd. Furthermore, at its Ararat project, it had received a confirmation of the potential for multiple VMS base metal/ gold occurrences. SVY’s diamond drilling exploration highlights for Forgan’s Find VMS prospect depicted narrow intervals of massive to stringer sulphide zinc and copper mineralization including 0.2 metres at 1.77% zinc and 0.12% copper, 0.25 metres at 0.57% zinc and 0.13% copper, and 0.25 metres at 0.41% zinc.
 

Forgan’s Find Prospect Ararat Project (Source: Company Reports)
 
The group’s stock rose by 18.52% in the last one month (as at April 22, 2016) post the settling of heat from the commodity pricing pressure. Given the strong outlook from its prospects, we believe that investors need to leverage the opportunity with expectation of SVY’s projects becoming the near term production assets. Based on the foregoing, we recommend the stock as a “Speculative Buy” at the current market price of $0.155
 
 
SVY 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.
Copyright
Copyright © 2016 Kalkine Pty Ltd ABN 34 154 808 312. No part of this website, or its content, may be reproduced in any form without the prior consent of Kalkine Pty Ltd.
Kalkine is a trading name of Kalkine Pty Ltd ABN 34 154 808 312, which holds Australian Financial Services Licence No. 425376.