##{"id":87081,"date":"2020-06-25T09:06:55","date_gmt":"2020-06-24T23:06:55","guid":{"rendered":"https:\/\/www.fnarena.com\/?p=87081"},"modified":"2020-06-25T09:06:56","modified_gmt":"2020-06-24T23:06:56","slug":"research-domacom-new-products-to-further-bolster-fum-growth","status":"publish","type":"post","link":"https:\/\/staging.fnarena.com\/index.php\/2020\/06\/25\/research-domacom-new-products-to-further-bolster-fum-growth\/","title":{"rendered":"RESEARCH: Domacom, New Products To Further Bolster FuM Growth"},"content":{"rendered":"

Pitt Street Research suggests a re-rating is on the cards following successful product launches and resultant growth in FuM<\/em><\/p>\n

By Pitt Street Research<\/p>\n

DomaCom Ltd ((DCL)) is back on track with respect to growth of its funds under management (FuM) after a period of subdued activity during Q3 FY20.<\/p>\n

DCL’s FuM registered strong quarterly (~10%) and yearly growth (~37%) and reached $70.9m as of May 2020.<\/p>\n

This is a noteworthy development considering that it was achieved against the backdrop of unfavourable economic conditions.<\/p>\n

We believe that the new product launches in the pipeline will continue to support the growth trajectory of DCL’s FuM in future.<\/p>\n

Focus on launching four new products in 2020<\/strong><\/p>\n

Management is targeting the launch of four innovative products this year catering to different real estate investment needs.<\/p>\n

The first transaction of the Rent-to-Own offering is already in progress. The Essential Worker and Equity Mortgage offerings will be launched by Q3 and Q4 CY20 respectively, and the Senior Equity Release product is getting a lot of investor attention, especially from self-funded retirees whose incomes have diminished during the current downturn.<\/p>\n

DCL is well capitalised to support its products launch plans as it raised $6m in 2019 and has negotiated an extension of convertible notes worth $3.6m in May 2020.<\/p>\n

Reiterating valuation of $0.30–0.41 per share<\/strong><\/p>\n

FuM is showing promising growth which leading us to reiterate our previous valuation of $0.30–0.41 per share based on a DCF approach.<\/p>\n

We believe that successful product launches and resultant growth in FuM should drive a re-rating of the stock.<\/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\/DCL\/<\/a><\/p>\n

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