Yojee Limited

YOJ Details

YOJ’s Cross-Border Logistics Software Gaining Traction:Yojee Limited (ASX: YOJ) is focused on developing a sharing-economy based logistics technology via the creation of Yojee delivery network and secure blockchain technology platform. The industries using Yojee’s software primarily include bike courier, global freight forwarder, banking, etc. 

Recently, the companyissued 70,000,000 fully paid ordinary shares (Placement Shares) at an issue price of $0.05 per share to institutional and sophisticated investors, in order to raise $3,500,000, before costs. It also issued director Gary Flowers, 1,500,000 unquoted options exercisable at $0.10 per option and 1,500,000 unquoted options exercisable at $0.15 per option, on or before December 23, 2022.

On December 9, 2019, YOJ informed the market that its unique and transformative cross-border software targeting the Asia Belt and Road initiative has been live, and the multiple logistics hubs in focus regions of Singapore, Malaysia and Thailand, have been laying foundation into rest of Asia.

September’19 Quarter Key Highlights:Net cash outflow from operating activities was reported at $1,294,000. Net cash outflow from financing activities for the period was reported at $1,000. Cash and cash equivalents at end of quarter was reported at $2,131,000.


September’19 Quarter Operating Cash Flow (Source: Company Reports)

What to Expect: As per the release, 14 new software customer contracts were signed, including national leaders and Small & Medium Enterprises across 5 countries, including a North American client, presenting huge opportunities for growth. The September quarter witnessed contract revenue worth A$1,200,000 from existing agreements recognisable over the coming 24 months. The company boarded in new clients along with a new pipeline for a digital end-to-end experience.

Stock Recommendation:The stock generated a negative YTD return of 14.75%. The company recently wrapped up the capital raising, proceeds of which will be utilized towards further building out the Asia Pacific and international marketplaces. Moreover, the funds are also expected to be used to improve its leadership in smart technologies like artificial intelligence as well as logistics network interconnectivity.Its current ratio for FY19 stood at 5.35x, better than the industry median of 1.75x, which implies that the company is in a better position to address its short-term obligations.Hence, considering the above-stated facts and current trading levels, we give a “Speculative Buy” recommendation on the stock at the current market price of A$0.053 per share, up 1.923% on 27 December 2019.

 
YOJ Daily Technical Chart (Source: Thomson Reuters)
 
 
 
 

Horizon Oil Limited

HZN Details

Jadestone Proposes Acquisition of Stake in Maari Project:Horizon Oil Limited (ASX: HZN) is in the business of petroleum exploration, development and production. Recently, the company provided update about its Maari project, where it highlighted the proposed sale of OMV New Zealand’s 69% interest to Jadestone Energy Inc., subject to acceptance of Jadestone as operator by the Maari joint venture partners, New Zealand Government approvals relating to title transfer and change of operatorship and other customary conditions on or before 15 November 2020. Currently, HZN holds a 26% interest in the Maari and Manaia oil fields in New Zealand, and its joint venture partners OMV New Zealand Limited and Cue Energy Resources Limited have stakes of 69% and 5%, respectively. 

September’19 Quarter Key Highlights:Revenue for the quarter, inclusive of hedge settlements, was reported at US$27 million, and total revenue for three quarters to September 2019 was reported at US$86 million.Net operating cash flow for the quarter was reported at US$21 million, and that for three quarters to September 2019 was reported at US$66 million. Net debt as on September 30, 2019, reduced to US$20 million, with continued reductions projected for the remainder of the calendar year. Cash at the end of the quarter was reported at US$19 million. 


September’19 Quarter Performance (Source: Company Reports)

What to expect:Company started FY20 with decent September quarter performance, and with continued strong production at Maari, driven by the successful water injection program, the joint venture has initiated life extension studies planning for the Maari facilities to produce late into the next decade. With the assumption of continuation of momentum of current production and oil prices, the company is well positioned to achieve its targeted net cash position by mid of CY20, with continued reduction in debt during FY20.

Stock Recommendation: The stock posted a YTD return of 15.00%.The strong production and cash flow in FY19 provided a pathway to growth, which is expected to help the company in gaining traction among the market participants. Moreover, the company is optimistic about the improved and sustained performance at Maari/Manaia, which is expected to support business growth in the coming times. Its gross margin, EBITDA margin and net margin for FY19 stood at 45.0%, 69.4% and 29.3%, better than the industry median of 44.3%, 32.2% and 15.3%, respectively, implying decent fundamentals of the company. ROE for FY19 stood at 30.3%, better than the industry median of 13.2%, implying that the company generated better return for its shareholders than its peer group. Considering the company’s business model, outlook and current trading levels, we give a “Speculative Buy” recommendation on the stock at the current market price of $0.117, up 1.739% on December 27, 2019.

 
HZN Daily Technical 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 do not hold positions in any of the stocks covered on the website. These stocks can change any time and readers of the reports should not consider these stocks as advice or recommendations.