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ACHIKO LTD. Original-Research: Achiko Ltd. (von Sphene Capital GmbH): Buy

Directive transparence : information réglementée

12/12/2019 08:36

Original-Research: Achiko Ltd. - von Sphene Capital GmbH

Einstufung von Sphene Capital GmbH zu Achiko Ltd.

Unternehmen: Achiko Ltd.
ISIN: KYG0101M1024

Anlass der Studie: Update Report
Empfehlung: Buy
seit: 12.12.2019
Kursziel: USD 1.70
Kursziel auf Sicht von: 24 Monate
Letzte Ratingänderung: 11.11.2019 (vormals n/a) Analyst: Peter Hasler

Expanding range of services through value-enhancing M&A

We continue to believe that Achiko shares offer a compelling attractive growth investment opportunity. While the shares are trading close to the intrinsic value of Achiko's existing asset portfolio, the market does not give credit to the future strategy and portfolio expansion. Should the ambitious management expectations be confirmed over the next years, we believe that Achiko is trading significantly below its intrinsic value. Therefore, we are confirming our USD 1.70 price target which is based on a discounted cash flow entity model (primary valuation method). Given an expected 65.0% upside compared to yesterday's closing price, we maintain our Buy rating for the shares of Achiko Ltd.

Last week, Indonesian EmpatKali announced the licensing of Achiko's digital financial platform to provide after-pay services on Achiko's digital financial platform in Indonesia. EmpatKali is a 'Buy Now, Pay Later' company that offers Indonesian consumers an interest-free loan for the purchase of consumer goods. This form of credit financing is particularly suitable for 85% of Indonesian Muslims, who are for religious reasons not allowed to use interest-dependent financial products. In the future, users of the EmpatKali service will be able to use Achiko's digital financial services platform as a method of payment, and users of the Achiko app will be able to access EmpatKali's after-pay services.

Under the terms of the agreement, Achiko will invest USD 0.1 million in EmpatKali in the form of a convertible bond. A conversion ratio into EmpatKali shares has not been finalized yet. The interest free convertible bond converts at a 20% discount to the next financing round of EmpatKali. After conversion, we expect Achiko's ownership in EmpatKali to be 30-40%.

We consider the strategic acquisition of EmpatKali to be value-enhancing for Achiko. Attaching a 'Buy Now, Pay Later' service will expand the range of services, from games to ecommerce and other services. Over the medium term, this should positively impact Achiko's footprint and offer additional margin opportunities for the company.

Die vollständige Analyse können Sie hier downloaden: http://www.more-ir.de/d/19745.pdf

Kontakt für Rückfragen
Peter Thilo Hasler, CEFA
+49(89)74443558/ +49(152)31764553
peter-thilo.hasler@sphene-capital.de

-------------------übermittelt durch die EQS Group AG.-------------------

Für den Inhalt der Mitteilung bzw. Research ist alleine der Herausgeber bzw. Ersteller der Studie verantwortlich. Diese Meldung ist keine Anlageberatung oder Aufforderung zum Abschluss bestimmter Börsengeschäfte.