##{"id":85268,"date":"2020-03-06T12:30:03","date_gmt":"2020-03-06T01:30:03","guid":{"rendered":"https:\/\/www.fnarena.com\/?p=85268"},"modified":"2020-03-06T12:30:03","modified_gmt":"2020-03-06T01:30:03","slug":"research-credit-intelligence-earnings-quadrupled","status":"publish","type":"post","link":"https:\/\/staging.fnarena.com\/index.php\/2020\/03\/06\/research-credit-intelligence-earnings-quadrupled\/","title":{"rendered":"RESEARCH: Credit Intelligence Earnings Quadrupled"},"content":{"rendered":"

Pitt Street Research explains why Credit Intelligence stands to benefit from the coronavirus economic impact<\/em><\/p>\n

By Pitt Street Research<\/p>\n

Credit Intelligence ((CI1)) delivered a very strong 1H FY20 result. Revenue rose 116% YoY to $6.1m and profit after tax increased by a remarkable 355% YoY to $1.3m. EPS also lifted by approximately 333% YoY to 0.13 cents.<\/p>\n

The overall growth is supplemented by the consolidation and integration of the recent acquisitions in the Singapore credit funding market which have performed strongly over the 6 months ending December 2019.<\/p>\n

Backing out the acquisition growth component, CI1’s underlying organic revenue growth was still at an impressive 34% which reflects advancement in its Hong Kong business.<\/p>\n

COVID-19 is a near to medium term profit driver<\/strong><\/p>\n

Given CI1’s counter-cyclical operating model, the business performs more favourably under adverse economic circumstances. The recent coronavirus outbreak has spun the global economy into a state of downturn and uncertainty.<\/p>\n

As the performance of businesses across the world continue to deteriorate, the level of bankruptcy filings should in our opinion elevate. Accordingly, we see coronavirus as a unique catalyst that will drive CI1’s near-term profitability.<\/p>\n

Valuation range reiterated at $0.06 – 0.08 per share<\/strong><\/p>\n

We have revised our near-term revenue forecasts to factor in the upside risk from the coronavirus event. We also revised our FY20 estimates for the Singapore business in line with updated company guidance.<\/p>\n

Overall, our valuation range remains largely intact at $0.06 – 0.08 per share.<\/p>\n

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

Yesterday 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\/CI1\/<\/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":"