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

Directive transparence : information réglementée

18/03/2020 13:06

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: 18.03.2020
Kursziel: USD 1,20 (bisher USD 1,70)
Kursziel auf Sicht von: 24 Monate
Letzte Ratingänderung: -
Analyst: Peter Hasler

Partnership with Huawei Tech Investment

Achiko and Huawei Tech Investment, a subsidiary of Chinese Huawei Technologies, announced their intention to partner in providing access to market and to promote a series of marketing activities. These marketing activities range from the consumption of digital inventories of Indonesia's top 3 telco companies, over the creation of exclusive microsites and cross promotional campaigns to online and offline activities. With a marketing budget of up to USD 1 million, the partnership is expected to deliver revenues of up to USD 15 million in the current fiscal year 2020e.

Given the market position of Huawei Technologies as one of the leading telecommunications equipment and consumer electronics companies in the World, the partnership should further improve the reputation of Achiko as Indonesia's leading Smart payment company, in our view. While the shares are trading now even below the intrinsic value of Achiko's existing asset portfolio, in our view, investors seem to not give credit to the future strategy and portfolio expansion in current depressed asset markets. Should the ambitious management expectations be confirmed over the coming years, we believe that Achiko is trading significantly below its intrinsic value per share. However, considering the current uncertainty on the capital markets, we have adjusted our discounted cash flow entity model (primary valuation method) driven price target by assuming higher risk premiums for transparency and the early stage character of the business model. These adjustments result in a revised price target of USD 1.20, down from USD 1.70 per share. Despite the significant underperformance versus the Swiss equity index (-65.3% vs. SMI's -17.7% since beginning of trading in October 2019), we reiterate our Buy rating for the shares of Achiko Ltd. with an expected 24 months upside potential for the shares of 140.0%.

Die vollständige Analyse können Sie hier downloaden: http://www.more-ir.de/d/20269.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.