Credit Corp Group Ltd

         CCP Dividend Details
 
Increasing PDL acquisitions: Credit Corp Group Limited (ASX: CCP) improved money collection by 26% in fiscal year of 2015 from the Purchased Debt Ledgers (PDLs) held for more than two years, as compared to the earlier year and the  face value of the accounts on recurring payment arrangements rose 15% to $1.04 billion in 2015. The group made PDL acquisitions of $87 million during the second half of the year against $56 million in the first half of 2015. Credit Corp also enhanced its loan book to $100 million in FY15 from $63 million while the lending business is now profitable. CCP’s consumer lending business achieved $100 million loan book, driven by its Wallet Wizard brand launch in second half of the year. Accordingly, CCP delivered 10% increase of NPAT to $38.4 million during the fiscal year of 2015. The group recently upgraded its 2016 guidance and estimates PDL acquisitions to be in the range of $125 - $145 million instead of earlier stated $90 - $120 million and NPAT of $42 - $44 million instead of $40 - $42 million owing to operational improvements and strong PDLs acquisitions. On the other hand, CCP has increased its PDLs pays while its competitors are decreasing PDLs due to current tough market conditions and might have the pressure to justify its investments.
 


Operational metric performance (Source: Company Reports)
 
CCP stock fell over 20.38% (as of November 06, 2015) in the last three months and has risen 4.93% in the last one month at the back of the upgraded guidance and good performance over first four months of FY16 with growth in personal loan product in the amounts of $2000 to $5000 and progress in the US. Impact from CCP’s decision to cease the issuance of small amount credit contracts is yet to be seen for loan growth targets although the company expects no great effect. We believe that external pressure through market will continue further in the coming months. We give an Expensive recommendation on the stock at the current price of $10.08
 
 
CCP Daily Chart (Source: Thomson Reuters)
 

iSentia Group Ltd

        ISD Dividend Details
 
Outstanding FY15 performance: iSentia Group Ltd (ASX: ISD) revenues rose 2% better than prospectus and by 15% year on year (yoy) to $127.3 million in fiscal year of 2015, driven by better penetration across social media and insights which doubled against FY14. Media database products enhanced by 17.3% on a yoy basis. ISD’s Australia and New Zealand average revenue per client improved by 14% yoy to $31,400, driven by ongoing shift to fixed fee service arrangements as well as solid interest in value added services across social media, insights and database products. The group’s EBITDA and underlying NPATA reached $42.5 million and $27.4 million respectively, also above the IPO prospectus estimates.  ISD acquired King Content to expand its portfolio communications strategy and content marketing. King Content has a strong presence in Australia as well as has penetrated into Singapore, Hong Kong, UK and the USA. Meanwhile, Isentia NPS score reached +21 during FY2015, indicating their quality client service. The group estimates that over 75% of its Australian and New Zealand clients would remain significant for its value added services across social media, media database and insights products and services.
 


   Financial Performance highlights (Source: Company Reports)
 
On the other hand, the shares of ISD surged over 18.44% in the last three months (as of November 06, 2015) and increased by 1.23% in the last four weeks. This strong rally in the stock placed it in higher valuations with the stock trading at expensive P/E of 41.9x. ISD also has a lower dividend yield of 1.68%. Accordingly, we give an Expensive recommendation to ISD at the current price and would review the stock at a later date.
 
 
ISD Daily Chart (Source: Thomson Reuters)
 

Integral Diagnostics Ltd

       IDX Details
 
Diverting IPO proceeds to cover debt and fund growth opportunities: Integral Diagnostics Ltd (ASX: IDX) raised over $133.7 million via its IPO and the group intends to divert these funds to cover its overall debt (over $109 million) and for potential acquisitions and growth opportunities. IDX operates in Victoria at 23 sites, Queensland in 12 sites and in Western Australia in 9 sites. IDX has a solid potential addressable opportunity driven by rising ageing population and growing frequency of chronic diseases which would drive the demand for its Diagnostic Imaging Services. The group offered over 1 million patient images and generated $160.0 million of pro forma revenue during fiscal year of 2015 and is one among the major Diagnostic Imaging Services providers in Australia. IDX’s pro forma revenue and EBITDA delivered a CAGR increase of 7.4% and 16.3%, respectively, during the period between FY2013 and FY2015, partly driven by South Coast Radiology and Global Diagnostics Australia acquisitions. The group has nine MRI Licenses and three partial MRI Licenses as well as operates in high population growth corridors like Gold Coast and outer western Melbourne region that offer it a competitive advantage.



Financial performance and estimates (Source: Company Reports)

 
On the other hand, the IDX stock reached its peak price of $1.95 on 27 October 2015, but could not sustain these levels and have been correcting since then. We believe IDX will continue to witness the short term pressure. We give an Expensive recommendation to the stock at the current price OF $1.91.
 

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