##{"id":90969,"date":"2021-01-14T13:02:53","date_gmt":"2021-01-14T02:02:53","guid":{"rendered":"https:\/\/www.fnarena.com\/?p=90969"},"modified":"2021-01-14T13:02:53","modified_gmt":"2021-01-14T02:02:53","slug":"research-domacom-moving-forward-at-robust-pace","status":"publish","type":"post","link":"https:\/\/staging.fnarena.com\/index.php\/2021\/01\/14\/research-domacom-moving-forward-at-robust-pace\/","title":{"rendered":"RESEARCH: Domacom Moving Forward At Robust Pace"},"content":{"rendered":"

Pitt Street Research has reinstated its valuation for DomaCom, with the company continuing to make steady progress on new product releases<\/em><\/p>\n

By Pitt Street Research<\/p>\n

DomaCom Ltd ((DCL)) continues to make steady progress on new product releases.<\/p>\n

The company is partnering with BlueCHP, a community housing provider, on an $250m essential workers affordable housing pilot programme, based on DCL’s Rental Property Accelerator product.<\/p>\n

The product uses developer discounts to accelerate property investment for both investor and tenants. Additionally, DCL has also advanced on the new Shariah-compliant Islamic home finance product by entering into a partnership with Crescent Group.<\/p>\n

Retirement Income Review provides validation for senior equity release offering<\/u><\/p>\n

In November 2020, the Australian Treasurer released its Retirement Income Review report, which highlights the need for focus on post-retirement income stream.<\/p>\n

The report also emphasises the government's downsizer contributions scheme which retirees can use to access their housing wealth.<\/p>\n

We believe that any tangible expansion in retirement income will in parallel increases attention on alternative investment strategies such as DCL's senior equity release.<\/p>\n

Reiterating valuation of $0.30–0.40 per share<\/u><\/p>\n

Given the steady progress on the essential worker program and the Shariah-compliant finance solution, as well as the opportunity provided by the senior equity release offering, we reinstate our previous valuation of $0.30–0.40 per share based on the DCF approach.<\/p>\n

We believe that successful product launches and resultant growth in FuM should drive a re-rating of DCL. Key risks we see include: 1) slow increase in FuM; and 2) cyclical risk.<\/p>\n

Disclosure: Pitt Street Research directors own shares in Domacom Ltd.<\/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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FNArena is proud about its track record and past achievements: Ten Years On<\/a><\/em><\/p>\n","protected":false},"excerpt":{"rendered":"