##{"id":83805,"date":"2019-11-25T09:16:08","date_gmt":"2019-11-24T22:16:08","guid":{"rendered":"https:\/\/www.fnarena.com\/?p=83805"},"modified":"2019-11-25T09:16:10","modified_gmt":"2019-11-24T22:16:10","slug":"research-credit-intelligence-hong-kongs-political-unrest-drives-growth","status":"publish","type":"post","link":"https:\/\/staging.fnarena.com\/index.php\/2019\/11\/25\/research-credit-intelligence-hong-kongs-political-unrest-drives-growth\/","title":{"rendered":"RESEARCH: Credit Intelligence, Hong Kong’s Political Unrest Drives Growth"},"content":{"rendered":"

Pitt Street Research finds Credit Intelligence should benefit from recent acquisitions plus social unrest in Hong Kong.<\/em><\/p>\n

By Pitt Street Research<\/p>\n

Acquisitions to support geographical expansion<\/strong><\/p>\n

Credit Intelligence ((CI1)) recently announced the acquisition of two Singapore-based credit funding institutions – ICS Funding Pte Ltd and Hup Hoe Credit Pte Ltd.<\/p>\n

These deals provide CI1 access to the credit funding market of Singapore for personal and corporate loans. CI1 will now have two additional advantages: (i) additional stream of high-margin revenue; (ii) scope for aggressive expansion in a new geography.<\/p>\n

HK economic slowdown provides opportunity<\/strong><\/p>\n

As the socio-political situation in Hong Kong becomes more difficult, the volatile economic conditions will support CI1’s revenue growth.<\/p>\n

As the situation remains uncertain, lower consumer spending, declining corporate investment and subdued business activity will propel insolvency filings.<\/p>\n

Further, the advancement of its recently launched app will help handle a huge volume of cases, thereby supporting margin expansion.<\/p>\n

Valuation increased to $0.06 – 0.08 per share<\/strong><\/p>\n

We have altered our assumptions and included the impact of two new acquisitions as well as the unexpected boost to business from the Hong Kong turmoil.<\/p>\n

We now value CI1 at $0.06 per share base case (was $0.048) and $0.08 per share in a more optimistic scenario (was $0.071). Our valuation is based on a blend of DCF and P\/E-based relative valuation methods.<\/p>\n

Download the full report<\/strong><\/p>\n

Earlier today the report above was released by Pitt Street Research for which FNArena is a partner in distribution. The full report can be accessed here:<\/p>\n

https:\/\/www.fnarena.com\/index.php\/pitt-street-research\/CL1\/<\/a><\/p>\n

Find out why FNArena subscribers like the service so much: "Your Feedback (Thank You)<\/a>" – Warning this story contains unashamedly positive feedback on the service provided.<\/em><\/p>\n

FNArena is proud about its track record and past achievements: Ten Years On<\/a><\/em><\/p>\n","protected":false},"excerpt":{"rendered":"