NetComm Wireless Ltd

NTC Details
· Supplying Distribution Point Units (DPU) for nbn’s Fibre-to-the-Curb Project: NetComm Wireless Ltd (ASX: NTC) stock made an outstanding rally and generated over 23.98% returns on November 23, 2016. The group made a Master Equipment and Services Supply Agreement with nbn for supplying Distribution Point Units (DPUs) and related services, with the likely starting of supply during FY2018. This is a milestone agreement to the group as delivering Fibre-to-the-Curb (FTTC) would enable higher speeds of up to 100/40Mbps using VDSL2. FTTC services would even enhance the experience for end-users. Meanwhile, NTC also generated revenues rise of 15% year on year (yoy) to $85.1 million, while underlying EBITDA rose 23% yoy to $11.2 million in fiscal year of 2016. The group even raised $51 million to invest in business.

· Recommendation: NTC stock fell over 28.01% in the last three months (as of November 22, 2016). We give a “Hold” recommendation on the stock at the current price of -- $ 2.74 

Milestones since last 34 years (Source: Company Reports) 

Bellamy's Australia Ltd

BAL Details
· Regaining confidence in China: Bellamy's Australia Ltd (ASX: BAL) stock rose over 5.76% on November 23, 2016 leading to a rise of about 7% in the last five days at the back of positive sector-driven sentiments. The confidence in the stock has been revamped after its peer, A2M reported an ongoing solid performance of their products in the China region. BAL stock fell over 21.78% in the last three months (as of November 22, 2016) due to concerns over the group performance in China. On the other hand, BAL delivered an outstanding performance in fiscal year of 2016, wherein EBIT surged over 342% yoy to $54.3 million while EBIT margin more than doubled from 10% in FY15 to 22% in FY16. China revenues surged over 331% in fiscal year of 2016. BAL reported that their direct trading with China-based enterprises and customers continued to grow. Bellamy’s even reported a solid core performance as well and reported a 67% growth in Australian revenues. But, with the addition of second manufacturing partner (Fonterra), the group’s inventory rose to $67.8 million. For fiscal year of 2017, the group plans to invest a further $15-20 million across product, people, marketing and promotional activities. The group is also aiming to invest in marketing in China for brand expansion.

· Recommendation: We give a “Hold” recommendation on the stock at the current price of – $ 11.74

Domestic market opportunity for Bellamy’s (Source: Company Reports)

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