NEXTDC Ltd

Boosting capital position: NEXTDC Ltd (ASX: NXT) raised $150 million with $50 million from institutional investors and $100 million from retail entitlement offer to fund the second Sydney data center. The group also delivered an outstanding FY 16 performance wherein the revenue enhanced 52% to $92.8 million, beating the guidance of $85 million to $90 million. EBITDA surged 247% to $27.7 million, meeting the top end of its guidance range of $25 million to $28 million. NXT has reported a statutory net profit of $1.8 million, against the net loss of $10.3 million in FY 15. In addition, the company expects the revenue to be in the range of $115 million to $122 million for FY17, an increase of 24% to 31% on FY 16. The EBITDA is expected to be in the range of $46 million to $50 million, an increase of 66% to 80% on FY 16. We maintain a “Hold” recommendation on the stock at the current price of – $ 3.58

BrainChip Holdings Ltd

Deployment of Game Outcome Solution: BrainChip Holdings Ltd (ASX: BRN) recently announced about deployment of its Game Outcome Solution at Mohegan Sun Casino in December 2016. BRN also clarified about statements in the article in the Australian Financial Review (AFR) and said that there is no guarantee of their current discussions to lead to any major agreements as the commercial process is a time-taking process. BRN stock already surged 107% in the last six months (as on January 04, 2017) as they rolled out their casino table security monitoring technology in Las Vegas. But after their recent clarification, there are concerns over commercial efforts. Further, the stock is trading close to its 52-week high price. We believe that the stock is “Expensive” at the current price of – $ 0.29

Aconex Ltd

Enterprise agreement with AECOM: Aconex Ltd (ASX: ACX) started this year on a positive note and rallied 6.1% in last five days (as on January 04, 2017). Recently, ACX made an enterprise agreement with AECOM, according to which AECOM will be able to use Aconex project-wide collaboration solutions to connect the teams, data and processes for engineering and construction projects globally. But ACX is trading at an unreasonable P/E while the stock has been hammered by about 31.4% in the last six months (as on January 04, 2017). We give an “Expensive” recommendation at the current price of –
$ 5.53

Nearmap Ltd

Capital raising to fund capture program: Nearmap Ltd (ASX: NEA) completed its share purchase plan under which it sought to raise a maximum of $5 million. Recently, the group had revealed about a $20 million capital raising to expand NEA’s sales and marketing capability and its capture program. On the technology front, the group is now developing HyperCamera units for oblique imagery capture. Meanwhile, NEA stock has risen 51.1% in the last six months (as on January 04, 2017). We maintain a “Hold” recommendation on the stock at the current price of – $ 0.72

iSentia Group Ltd

Downgrade in guidance for FY 17: iSentia Group Ltd (ASX: ISD) revenue grew 23% to $156.0 million while the underlying NPATA enhanced 19% to $32.6 million on year-on-year (yoy) basis in FY 16. The full year proforma revenues from the King Content acquisition enhanced 68% year on year, which is well ahead of the expectations at the time of acquisition. But, ISD expects that 1H FY17 EBITDA to be below the prior corresponding period, while the full year FY17 revenue and EBITDA growth is forecasted to be in the high single digit range as compared to the double-digit growth in the prior corresponding period. The FY 17 guidance is below the previous guidance of revenue and EBITDA growth as forecasted to be low to mid-teens in FY17. ISD stock has fallen 30.8% in the last three months (as on January 04, 2017), but still trading at a high P/E. We give an “Expensive” recommendation on the stock at the current price of – $ 2.73

Adslot Ltd

Strong competitive edge: Adslot Ltd (ASX: ADJ) has raised funds of a total of $18 million in September in which $11.2 million came from institutional investors. In FY 16, ADJ reported a 19% growth in the revenue while the EBITDA loss was about 11%. ADJ in the September quarter has posted a revenue growth in Trading Technology mostly due to the 86% growth in the License Fees against the prior corresponding period. Moreover, ADJ is well positioned in offering buy-side work-flow solution for agencies as well as fully automated transactional platform for both Publishers and Media Buyers. The group is the only player competing in the “automated guaranteed” space that has both a demand channel platform (Symphony) and a supply channel platform (Adslot Media), fully-integrated under one roof. The group recently launched video advertising via Symphony. We give a “Speculative Buy” recommendation on the stock at the current price of – $ 0.099

Technology One Ltd

Exceeded the market guidance for profit growth in FY 16: Technology One Ltd (ASX: TNE) reported a 16% growth in the net profit after tax to $41.3 million for fiscal year of 2016 and has exceeded the market guidance for profit growth in the range of 10 and 15 per cent. The group recently clarified about effective tax rate. TNE stock has risen 11.57% in the last six months (as on January 04, 2017), but the stock is currently trading at an unreasonable P/E. We give an “Expensive” recommendation on the stock at the current price of – $ 5.66

NetComm Wireless Ltd

Agreement with nbn: NetComm Wireless Ltd (ASX: NTC) has signed a Master Equipment and Services Supply Agreement with nbn for the Fibre-to-the-Curb (FTTC) project, for providing Distribution Point Units (DPUs) and related services. Starting of the supply might be from FY2018. The group is making changes to its board. We maintain a “Hold” recommendation on the stock at the current price of – $ 2.11

Touchcorp Ltd

Efforts to expand the sales team: Touchcorp Ltd (ASX: TCH) is expecting the revenue to be in the range of $36m to $38m for FY 16 and the Profit before tax is expected to be within the range of $14m to $16m including the $14m gain from the company’s share of the increase in net assets of Afterpay Holdings Ltd (Afterpay). There have been some challenges with regard to the transaction revenues in 2016 while the group is now making efforts to expand the sales team to strengthen existing customer relationships and build new ones. Meanwhile, TCH stock has fallen 49.3% in the last three months (as on January 04, 2017) and is trading at low levels. We give a “Hold” recommendation on the stock at the current price of – $ 1.04

Adacel Technologies Ltd

Ongoing strong performance: Adacel Technologies Ltd (ASX: ADA) in FY 16 has reported an 83% growth in the profit before tax of A$10.8 million. ADA has posted 14.3% growth in the revenue to A$47.9 million in FY 16 and a 134.4% growth in the net profit after tax. The group aims to grow through strengthening existing customer base, adding new customers, services expansion, and acquisitions. We give a “Speculative Buy” recommendation on the stock at the current price of – $ 2.40

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