Galaxy Resources Ltd

Lithium growth opportunities: Galaxy Resources Ltd (ASX: GXY) has premier global lithium opportunities with existing production and a world-class asset development pipeline. Operation had restarted at Mt Cattlin with expanded capacity, with an aim to generate substantial 100%-owned cash flows in 2017. This would lead the company to become a major global supplier of high quality lithium. GXY has also now achieved nameplate capacity at its Mt Cattlin spodumene operations wherein the throughput at its processing plant had averaged 210 dry tonnes per hour over the last seven days prior to reporting at the monthly average of a 79% utilisation rate. Further, the diversified project portfolio with hard rock and brine based lithium assets across Australia, Argentina and Canada further strengthened its position. The company is also well networked with key customers in the Asian lithium market. The stock price fell 22.6% in last three months (as at April 05, 2017) owing to sector-driven concerns and volatile conditions. However, GXY is expected to witness momentum given the drivers of growth relating to its production, exploration and development work. We rate the stock as a “Buy” at the current market price of $ 0.47 

Catalysts supporting market re-rating (Source: Company Reports) 

Magnis Resources Ltd

Grant of special economic zone license: Magnis Resources Ltd.’s (ASX: MNS) stock has plunged 25.6% in last six months but rose 7.7% in last one month (as at April 05, 2017), followed by a 4% rise on April 06, 2017. MNS has been granted a special economic zone license for the development of an advanced graphite processing plant in Tanzania. This would allow the company to apply the advanced technologies it has been developing to produce value enhanced graphite products. The grant would benefit the company from exemption from payment of corporate tax for 10 years, the exemption of taxes and duties for machinery, equipment and construction materials for the development of SEZ infrastructure. Furthermore, the company would benefit from the exemption from payment of withholding tax on rent, dividends and interest for 10 years. In the recently reported half yearly results, the group’s net loss reduced from $6.66 million to $5.83 million.We feel the stock is a “Buy” at the current market price of $ 0.66

Yowie Group Ltd

Reaffirming FY17 revenue growth target: Yowie Group Ltd (ASX: YOW) reported for a 67% rise in 1H FY17 revenue from ordinary activities while the net loss attributable to members also moved up 45%. However, YOW has now reaffirmed its FY17 revenue growth target to be in the 85% to 90% range over FY16 at the back of brand and business developments and boost from Easter driven orders in Q3. YOW has also launched a US$1m spring national marketing campaign to rebuild brand awareness in the US. These marketing investments and moves are expected to drive performance. The stock has fallen 22.9% in last three months but moved up about 7.45% in last five days (as at April 05, 2017). We give a “Buy” recommendation at the current price of $ 0.52

Nearmap Ltd

Significant growth in key markets: Nearmap Ltd (ASX: NEA) demonstrated strong progress during Q3FY17 with incremental annualized contract value (ACV) addition of $3 million in the financial year to date. Both Australian and the US businesses grew incremental ACV ahead of their H1 run rate.  The company said it has resources in place to continue to deliver strong growth. Group sales productivity has grown greater than 100% in both key markets. ACV growth was driven by rise in customers and rise in average revenue per customer (ARPC). The company has guided FY17 EBITDA of $4.5 - $6.5 million. We believe with the rising momentum in key markets, USA and Australia, would place the company in a better position to deliver the guided performance. The stock has fallen 25.6% in last three months but rose 3.88% in last five days (as at April 05, 2017). We give the stock a “Buy” at the current market price of $ 0.51

Sirtex Medical Ltd

Maintained FY17 dose sales guidance: Sirtex Medical Ltd (ASX: SRX) announced that the SARAH study abstract has been embargoed ahead of the upcoming European Association for the Study of the Liver, International Liver Congress (EASL/ILC), in Netherlands from April 19 – 23, 2017. The abstract is now expected to be released by EASL/ ILC. SARAH is a Phase III multi-centre prospective randomized open-label study for patients in France with advanced HCC (Barcelona Clinic Liver Cancer stage C) with or without portal vein thrombosis and no extrahepatic spread or whose disease has progressed or recurred after previous therapies and who are ineligible for surgical resection, ablation or liver transplantation. This move supported by clinical trials on completion can support the reach-out to a large number of patients considering the scope for SIR-Spheres. For the first half 2017, SRX had reported global dose sales growth of 5.6% to 6,047 units and has maintained FY17 dose sales guidance of 5-11% with FY17 constant currency EBITDA guidance maintained at $65-$74 million. SRX has also come-up with an on-market share buy-back for up to $30.0 million over the next six months. The stock price had dropped 43.4% in last six months but rose 20.16% in last three months (as at April 05, 2017) with the ongoing developments and positive updates from the company. Given the entire scenario and past volatility, we rate the stock a “Hold” at the current market price of $ 17.72

Capilano Honey Ltd

Sales down but profit up: Capilano Honey Ltd (ASX: CZZ) reported H1FY17 sales falling from $67 million to $66 million. This was impacted by key customer’s move to net pricing and less low margin export bulk sales. Non-Honey sales were also down due to lower sales in the export market for Apple Cider Vinegar. Further, higher expenses were reported on account of marketing and research costs which got offset by effective lower tax rate. On the other hand, the company has reported rise in margin from 22% to 23% on account of premium product sales. NPAT also increased from $5.5 million to $5.9 million during the period. China sales increased 87% with more focus on sales strategies. The group also benefitted from sale of Manuka assets into a new joint venture. Going forward, the company’s key focus area is export and premium product sales. The company has issued new shares of about 860,360. The stock has plunged 18.9% in last three months (as at April 05, 2017) and now trades at a reasonable level. We give a “Speculative Buy” recommendation for the stock at the current market price of $ 14.47

iCar Asia Ltd

Growth opportunity: iCar Asia Ltd.’s (ASX: ICQ) potential markets offer a huge growth with new car digital spend of $350 million and used car dealer potential digital spend of about $290 million. The company’s fully integrated TV marketing campaigns in all markets are driving growth in audience, leads and brand awareness. The company has experienced growth in all markets with launch of dealer application with messaging. The new car launch including physical events further provides growth prospects for the company. The revamp of media offering with improved audience segmentation and expanded proposition into finance, insurance, parts and accessories would also support growth prospects of the company. The company has largest automotive shopping portals operating in three largest automotive markets – Malaysia, Indonesia and Thailand. These three markets have over 1 million car transactions per year per country offering huge growth potential for the company. ICQ’s consolidated 2016 revenue growth was 6% year on year while NPAT and EBITDA witnessed a loss of 20% and 21%, respectively. The 2016 year to date cash flows were up 20% on prior year. The stock plunged 17.5% in last six months but recovered 13% in last three months (as at April 05, 2017). The group will hold its Annual General Meeting on May 26, 2017. We recommend a “Buy” at the current market price of $ 0.26

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