Vocus Group Ltd

VOC Details
Positive synergies and financials: Vocus Group Ltd (ASX: VOC) has disposed of 3.35 million shares (16% relevant interest) of Macquarie Telecom Group Ltd. Recently, VOC had announced that it has signed a 15-year Indefeasible Right of Use agreement worth more than $20 million with Superloop Limited (ASX: SLC) for international, intercapital, regional, Ethernet access and metropolitan fibre capacity in Australia.
 

Cumulative Acquisition Synergies (Source: Company Reports)
 
This deal will allow SLC to realize greater cost synergies from the BigAir acquisition and also provide a platform for the delivery of scalable services in Australia as part of the Superloop pan-Asian network. For the half year, VOC recorded an increase in revenue of 403.9% to $888.2 million from year-ago period while underlying net profit after tax rose 235.6% to $91.8 million. We give a "Buy" rating at the current share price of $ 4.33
 

VOCDaily Chart (Source: Thomson Reuters) 

Cynata Therapeutics Ltd

CYP Details
New agreements and narrowing net loss: Cynata Therapeutics Ltd (ASX: CYP) recently signed an agreement with the Monash Lung Biology Network in order to conduct a further preclinical study to support the use of Cymerus mesenchymal stem cells for the treatment of asthma. For the half-yearly period, revenues were down 67.3% to $25,398 while total comprehensive loss was down 58.6% to $1.02 million. Meanwhile, the company recently confirmed benefit resulting from treatment with CYP-001 for graft versus host disease conducted in a humanised mouse model of GvHD. We recommend a "Speculative Buy" on the stock at the current share price of $ 0.57
 

CYPDaily Chart (Source: Thomson Reuters) 

Altura Mining Ltd

AJM Details
Significant project milestone and stable financials: Altura Mining Ltd (ASX: AJM) recently announced that its mining contractor, NRW, has commenced bulk earthworks on site at its 100% owned Pilgangoora Lithium Project located in the Pilbara region of Western Australia. The commencement of mining operations will support Altura to achieve significant positive cashflows in early 2018 through sales of spodumene concentrate. For the half-yearly period, AJM recorded revenue of $259,000 while net loss stood at $2.6 million. 


Half-Yearly Exploration and Evaluation (Source: Company Reports)
 
Cash balance at the end of the period stood at $11.5 million compared to $1.28 million in the year-ago period. The stock has been added to All Ordinaries Index effective March 20, 2017. With a 16.8% increase in the past three months’ stock trading performance (as of March 28, 2017) and future prospects, we give a "Buy" rating at the current share price of $ 0.155
 

AJMDaily Chart (Source: Thomson Reuters) 

Australian Agricultural Company Ltd

AAC Details
Strong industry growth: Australian Agricultural Company Ltd (ASX: AAC) is strongly supported with a growing and strong agriculture industry in the country. In recent GDP report, Agriculture contribution widened by a bigger margin with farm production for the December quarter rising by 8.3%. The biggest increases came from grain, cotton, and livestock. For first half of the year 2017, AAC reported for increased operating EBITDA and margins on lower revenue. The revenue dropped by $46.6m from FY16 first half owing to increased wagyu days on feed, and reduced non-wagyu and live cattle sales. The operating margin, however, rose 1.9%. AAC stock has moved up 17.25% in last one month (as at March 28, 2017) and is still trading at reasonable levels. We give a "Buy" rating on the stock at the current share price of $ 1.67
 

AAC Daily Chart (Source: Thomson Reuters) 

ChimpChange Ltd

CCA Details
Strong First Quarter of 2017: For the March 2017 interim quarter, ChimpChange Ltd (ASX: CCA) recorded an increase of 86% to $5.95 million in total funds deposited by customers led by 25% organic growth in its customer base. Total transaction value (TTV) has increased by 77% relative to their TTV run-rate at the end of December 2016. Also, the significant growth is driven by the start of the U.S. tax refund season (February to May) leading to higher deposits. 

Growth in Customer Deposits (Source: Company Reports)
 
Meanwhile, for the first half 2017, CCA recorded an increase of 290% in revenue to $161,106 while attributable loss to members was down 34%. Transaction volumes were up 31.5% while deposits rose 41.9%. Additionally, CCA increased its live customer accounts by almost 41,000 during the first half. The stock fell about 4% on March 29, 2017, and given the above stated positives, we put a "Buy" at the current share price of $ 0.80
 

CCADaily Chart (Source: Thomson Reuters)

Donaco International Ltd

DNA Details
Mixed half yearly performance: Donaco International Ltd (ASX: DNA) recently recorded a 5% increase in its statutory net profit after tax to $14.8 million for 1H 17. Meanwhile, Aristo EBITDA increased 19% to RMB 42.6 million led by business benefits from management initiatives to increase mass market visitation and reduce exposure to VIP segment. On the other, Star Vegas EBITDA was down 17% due to weaker consumer sentiment and economic condition. 

Financial Performance Summary (Source: Company Reports)
 
Corporate costs have come down by $1 million from the prior comparable period while net debt to equity ratio has reduced to 14.1% in line with management plans. Looking ahead, the company foresees an improved performance from both its venues with Thai economy also improving. January 2017 rolling turnover is higher by 8.4% compared to same month prior year for Star Vegas. The stock has been removed from S&P/ASX 300 Index effective March 20, 2017. Given the long-term scenario, we give a "Buy" rating at the current share price of $ 0.39
 

DNA Daily Chart (Source: Thomson Reuters) 

Infigen Energy Ltd

IFN Details
New projects and stable financials:Infigen Energy Ltd (ASX: IFN) announced that along with its development partner it has secured a power purchase agreement with EnergyAustralia for 60% of the output from the proposed 113.2 MW Bodangora wind farm project being developed near Wellington in New South Wales. Also, IFN has reached an in-principle agreement to acquire its development partner's equity interest in the project for an agreed amount.
 

FY17 Guidance (Source: Company Reports)
 
For half yearly period, IFN recorded a profit after tax of $21.4 million as compared to a net loss after tax of $2.2 million in prior corresponding period. Revenue was higher by 38% led by production increase of 18% to 889 GWh. On the other hand, operating cash flow rose 203%. The group expects FY17 EBITDA to be $140 million from ordinary operations. We give a "Speculative Buy" rating at the current share price of $ 1.005
 

IFN Daily Chart (Source: Thomson Reuters)

Contango Microcap Ltd

CTN Details
Strong dividend yield and mixed financials: Based on the after-tax Net Assets of $172.46m in February 2017 (against January 2017 figure of $183.35m), Contango Microcap Ltd (ASX: CTN) announced its interim payable dividend of 2.7 cents per share while full year final dividend has been guided to be 3.9 cents per share. Meanwhile, NTA (Net Tangible Assets) of investments before tax as of February 28, 2017 stands at $1.115 (ex-div) while after tax stands at $1.029. For half yearly update, CTN recorded a drop of $9.6 million in revenues and $6.8 million in net profit attributable to members. Net assets as of December 31, 2016 stood at $180.7 million compared to $178.5 million as of June 30, 2016. For the same period, cash and cash equivalents rose to $39.9 million from $9.4 million. We assign a "Buy" rating on the stock at the current share price of $ 0.99
 

CTN 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.