Vocus Group Ltd


VOC Details

Regaining confidence post strong 1H 2017 Performance:Vocus Group Ltd (ASX: VOC) has reported a 403.9% growth in the revenues from ordinary activities in the 1H 2017 and delivered a 235.6% growth in the underlying net profit after tax.
 

1H 17 Financial Performance (Source: Company Reports)
 
The increase in revenue, underlying EBITDA and underlying net profit after tax was due to the strong demand for VOC products and the acquisition of Amcom in July 2015, M2 in February 2016, and Nextgen Networks in October 2016. Meanwhile, Superloop Ltd has signed 15-year Indefeasible Right of Use agreement with VOC for international, intercapital, regional Ethernet access and metropolitan fibre capacity in Australia. With the VOC stock falling 43.13% in the last six months as on February 27, 2017, we believe investors can leverage the subdued levels. We give a “Buy” recommendation on the stock at the current price of $4.38
 

VOC Daily Chart (Source: Thomson Reuters)
 
Bionomics Ltd


BNO Details

Grant for BNC105 trial in combination with Keytruda:Bionomics Ltd (ASX: BNO) had advised that its cancer drug candidate BNC105 would be evaluated in a combination trial with blockbuster immune-oncology drug Keytruda. The collaboration between Peter MacCallum Cancer Centre and Olivia Newton-John Cancer Wellness & Research Centre (ONJ Centre) has received $2.25m grant to fund BNC105 trial in combination with Keytruda, a checkpoint inhibitor developed by MSD. Moreover, the trial would enroll patients with advanced melanoma who are unresponsive to the standard treatments. The trial is expected to start in 1H, CY 2017. For half year ending December 2016, the group’s revenues from ordinary activities slipped by 30% while loss from ordinary activities after tax attributable to members was in line with management’s expectations. Meanwhile, BNO stock has risen 63.27% in the last six months as on February 27, 2017, and given the potential, we maintain a “Speculative Buy” recommendation at the current price of $0.405
 

BNO Daily Chart (Source: Thomson Reuters)
 
Infomedia Ltd


IFM Details

Maintaining double digit growth for NPAT in FY 17:Infomedia Ltd (ASX: IFM) has reported 3% revenue growth (6% growth on constant currency basis) in 1H 2017 and delivered a 16% growth in the net profit after tax. Moreover, IFM expects high single digit revenue growth to be in the range between six and eight per cent, for the financial year 2017.
 

1H 17 Financial Performance (Source: Company Reports)
 
IFM expects FY17 NPAT to be like 1H17, with a double-digit growth on the prior year. Meanwhile, IFM stock has risen 14.49% in the last six months as on February 27, 2017. We give a “Buy” recommendation on the stock at the current price of $0.805
 

IFM Daily Chart (Source: Thomson Reuters)
 
RCG Corporation Ltd


RCG Details

Revised the EBITDA guidance for FY 17:RCG Corporation Ltd (ASX: RCG) has reported a 34% growth in the underlying Net Profit after Tax rising to $23.3 million in the 1H 2017. However, RCG has revised the underlying annualized full-year EBITDA guidance from $90m to a range of $85 million to $88 million for the financial year 2017. As a result, RCG stock has fallen 17% in the last five days alone (as of February 27, 2017). On the other hand, management is confident to withstand the challenging conditions given their diversified portfolio and solid penetration. Benefits are also expected from the acquisition of Hype DC through FY17 and further. We give a “Buy” recommendation on this dividend yield stock at the current price of $1.135
 

RCG Daily Chart (Source: Thomson Reuters)
 
Donaco International Ltd


DNA Details

Controlling corporate costs in 1H 17:Donaco International Ltd (ASX: DNA) has reported the group EBITDA of A$33.3 million in 1H 2017 as compared to A$39.1 million in the prior corresponding period (pcp). Moreover, the group revenue fell down to A$59.0 million compared to A$68.9 million in pcp, primarily due to the lower VIP win rate at Star Vegas, lower VIP turnover at Star Vegas, and also due to the Australian dollar strengthened in the period against local currencies. However, the launch of online gaming at Star Vegas is planned for fourth quarter of FY2017 while the corporate costs reduced by A$1 million, as compared to pcp. The statutory NPAT reached A$14.8 million during the period (up 5%) against A$14.1 million in pcp. With the stock fall of over 20% in the last six months as on February 27, 2017, the stock is trading at low levels. We give a “Buy” recommendation on the stock at the current price of $0.365
 

DNA Daily Chart (Source: Thomson Reuters)
 
Auscann Group Holdings Ltd


AC8 Details

Faster access to medical cannabis for patients:Auscann Group Holdings Ltd (ASX: AC8) has given the update on the regulatory developments that would drive forward its strategy to deliver high quality, cost effective medicinal cannabis treatments to Australian patients. The Federal Government has announced that they would facilitate faster access to medicinal cannabis for the patients in Australia by authorizing controlled importation by approved suppliers from international sources. Hence, AC8 stock has risen 54.55% in the last one month as on February 27, 2017. The group recently completed a successful capital raising of $5 million. However, the group reported for 221% rise in loss from ordinary activities after tax attributable to members for half year period ending December 2016 and fell 2.3% on February 28, 2017. We give a “Speculative Buy” recommendation on the stock at the current price of $0.32
 

AC8 Daily Chart (Source: Thomson Reuters)
 
DroneShield Ltd


DRO Details

Outstanding stock performance since IPO: DroneShield Ltd (ASX: DRO) got listed in June 2016 and generated returns of over 53.3% since then (as of February 27, 2017). In fact, the stock has risen 130% in the last three months alone. On the other hand, the group’s FY16 revenue fell 36% on a yoy basis while Net loss attributable to members surged 924%.
 

FY16 Results (Source: Company Reports)
 
However, the group’s recent product launches promise a huge potential to their performance in the long term. In late 2016, the group’s detection product was sold to the office of Prime Minister of Turkey as well as to a national security agency of a country in Asia. In late November 2016, the group launched DroneGun, a tactical drone jammer, which would further add an effective drone countermeasure to DroneShield’s current suite of drone detection products. We recommend a “Speculative Buy” on the stock at the current price of $0.445
 

DRO Daily Chart (Source: Thomson Reuters)
 
ChimpChange Ltd


CCA Details

Strong Third Quarter FY17: ChimpChange Ltd (ASX: CCA) has reported the growth of total funds deposited by CCA customers in the third quarter which increased by 86% January to February (month to date) to US$4.58 million (A$5.95 million). Moreover, the total transaction volume grew by 69% January to February (month to date) to US$8.33 million (A$10.82 million), which boosted the annualized run rate of CCA’s TTV to about US$100 million (A$129 million).
 

Total Deposits by Month (Source: Company Reports)
 
Meanwhile, CCA stock has risen 10.53% in the last six months as on February 27, 2017, and rose 11.11% on February 28, 2017 at the back of the interim quarter update. We give a “Buy” recommendation on the stock at the current price of $0.73
 

CCA Daily Chart (Source: Thomson Reuters)
 
TPG Telecom Ltd


TPM Details

Singapore Spectrum Auction: TPG Telecom Ltd (ASX: TPM) has become the successful bidder at the New Entrant Spectrum Auction in Singapore and has acquired all of the spectrum available at the auction (being 2 lots of 2x5MHz of 900MHz spectrum and 8 lots of 5MHz of 2.3GHz spectrum) for a total purchase price of S$105m. Hence, TPM expects to incur the capital investment in the range of S$200m to S$300m for the establishment of a mobile network with nationwide coverage by September 2018. Meanwhile, TPM stock has fallen 47.67% in six months as on February 27, 2017, leading the stock to represent an investing opportunity. We give a “Buy” recommendation on the stock at the current price of $6.24
 

TPM Daily Chart (Source: Thomson Reuters)
 
Syrah Resources Ltd


SYR Details

Management Changes: Syrah Resources Ltd (ASX: SYR)has appointed Shaun Verner as the Managing Director and Chief Executive Officer (CEO), effective February 03, 2017. Shaun had joined SYR as Executive General Manager - Sales and Marketing in October 2016. On the other hand, Balama Graphite Project is on schedule for commissioning in the second quarter of 2017 and the production and ramp up would start from the third quarter of 2017. SYR stock has fallen 25.78% in the last six months as on February 27, 2017, and about 6% on February 28, 2017 owing to some volatility. We rate a “Buy” on the stock at the current price of $2.92
 

SYR Daily Chart (Source: Thomson Reuters)

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