4 Exciting IT Sector Stocks - FTC, BTH, XF1, TV2

  • Jun 12, 2019 AEST
  • Team Kalkine
4 Exciting IT Sector Stocks - FTC, BTH, XF1, TV2

Introduction

IT sector: IT sector is considered as the new age industry, it consists of companies that deal with computer software, hardware or semiconductor equipment. This industry also involves companies that offer internet and internet related services. The major segments within the IT sector consist of:

  • Software and its Services.
  • Tech Hardware.
  • Semiconductors and Semiconductor Equipment.

These industries are further segregated into further categories.

IT application: Information technology has applications in business, banking industry, railway sector, commerce and trade, small and medium business, large organizations, Administration, entertainment and many more.

Let’s have a look at four IT stocks from different industries as follows:

FinTech Chain Limited

About the company:

FinTech Chain Limited (ASX: FTC) is a financial technology company that provides Integrated Payment Acquiring infrastructure for banks, as well as Industry Application Solutions (which is collectively known as T-LinxTM System) in Greater China. T-Linx TM has been recognized, approved and has been provided to 400+ banks.

Recent Update/s:

On 12 June, FinTech Chain announced that it has signed a three years contract with Xinjiang Shanshan Rural Credit Bank (Shanshan), Xinjiang Weili Rural Credit Bank (Weili) as well as Xinjiang Gongliu Rural Credit Bank (Gongliu) in Xinjiang Province, under which FTC would be providing the deployment of its integrated T-Linx payment solutions across Shanshan, Weili and Gongliu in Xinjiang Autonomous area.

The deployment of the T-Linx platform would help in establishing a valuable Bank-Merchant-Consumer network. T-Linx platform will serve as a new business solution for extending the power of the banking system from banks to merchants/ SMEs/ core enterprises and customers.

The company successfully negotiated as well as secured the increased fee income of 0.03% as against the 0.02% transaction fee in the contracts that were signed earlier.

Stock Performance:

By the end of the trading session, on 12 June 2019, the price of FTC’s shares was at A$0.165, up by 10% as compared to its previous closing price. FTC has a market cap of A$97.62 and 650.77 million outstanding shares.

Bigtincan Holdings Limited

About the company:

Bigtincan Holdings Limited (ASX: BTH) is a leading provider of Sales Enablement Automation software, which is used by 100s of organization worldwide.

The company also helps the sales and service teams to increase win rates along with customer satisfaction.

Image Source: Company’s Report

Recent Update/s:

On 12 June 2019, the company released its investor presentation. In the presentation, the company provided its investment highlights. The company has hundreds of users, which include AT&T, Thermo Fisher, Merck and ANZ Bank. It has more than 150k licensed users along with an established business in North America and an emerging business in the United Kingdom as well as European markets.

It was also highlighted in the presentation, that the company is on track to meet its recently upgraded guidance. The company expects its revenue growth to exceed 40% year on year basis in FY2019. In May 2019, the company raised $15.6 million to accelerate key strategic priorities as highlighted in 1H FY2019 results. The raised funds would be used in

  • Sales and marketing staff.
  • Technology and product development.
  • M&A opportunities that meet the acquisition criteria.

The presentation also discussed Sales Enablement, its market size and growth.

Source: Company’s Investor Presentation

AI-Powered Sales Enablement Automation are helping people who are in customer-facing roles. With the AI-powered Sales Enablement Automation Platform, Bigtincan Hub, the organization using this are assured that their people have the best, most relevant data readily available to them, which would help them to interact with a prospect or consumer.

In the US, there are more than 20 million sales professionals who are fighting to seek customers’ attention. An 85% of the buyers in the US reach a decision-making point before talking to any salesperson.

Financial Highlights:

In 1H FY2019, the company reported an increase in ARR by 63% to $20.87 million as compared to its previous corresponding period (pcp). The company’s revenue was up by 56% to $9.43 million on pcp. Bigtincan made a loss of $1.95 million, down by 36% on pcp. The debt remains nil for the period.

Bigtincan’s Roadmap for FY2020:

  • To launch product offerings of the company for marketing, manufacturing as well as

enhancing the prevailing Retail and Life Sciences Packages.

  • Rise direct sales resources across the USA as well as the UK.
  • Increase assurance to customer success and customer acquisition programs via increased resources.
  • To focus on go to market programs.
  • Develop channel development activities for supporting growing market development and channel expansion.
  • Work on expanding the development of the UK, and European partner network.

Stock Performance:

By the end of the trading session, on 12 June 2019, the shares price of BTH was at A$0.525, up by 8.247% as compared to its previous closing price. BTH has a market cap of A$0.040 and ~ 126.07 million outstanding shares.

Xref Limited

Xref Limited (ASX: XF1) during the initial part of 2016 has set up itself within the HR technology industries of North America, Europe along with the Asia-Pacific region.

Its cloud-based automated platform provides exceptional candidate referencing solution that helps the clients in saving both time and money during the process of recruitment. Apart from this, the platform also helps the clients to make smarter and informed hiring decision.

Recent Update/s:

The company, recently on 27 May 2019, reported a change in the interests of the substantial holder, FIL Limited and the entities, effective 22 May 2019. FIL Limited was earlier holding 10,997,078 shares (common stock) of the company and had 6.72% voting powers. After the change of interests, FIL Limited now holds 13,475,065 shares (common stock) and has 8.14% voting power.

Financial Highlights:

  • The sales of the company in March 2019 reached $1.1 million.
  • During Q3 Fy2019, there was a 60% increase in revenue year-on-year.
  • There was an increase in international sales by 51% to $483,000 as compared to the previous corresponding period.

The company used A$1.938 million in its operating activities. There was a net cash inflow of A$0.455 million from the financing activities. By the end of Q3 FY2019, XF1 had net cash and cash equivalent worth A$9.594 million. The estimated cash outflow for Q4 is expected to be A$4.090 million.

Stock Performance:

The shares of XF1 have generated a decent YTD return of 17.02%. By the end of the trading session, on 12 June 2019, the price of the shares of XF1 was A$0.570, up by 3.636% as compared to its previous closing price. XF1 has a market cap of A$91.07 million and ~ 165.58 million outstanding shares.

TV2U International Limited

About the company:

TV2U International Limited (ASX: TV2) was founded in the year 2008 and has now evolved as a global leader within the OTT media and content delivery space. Thus, driving the industry towards streaming media assets across any network and to any device worldwide. OTT content stands for Over-the-top content, generally used in broadcasting and technology business. The content could be an audio, video or any other media source that gets transmitted through the internet.

Recent Update/s:

On 12 June 2019, the company entered into a definitive agreement in order to acquire the intellectual property portfolio of Talico Technologies Pte Limited.

As per the agreement, the company would be acquiring the IoT and OTT intellectual property of Talico along with all IoT-focused commercial projects that are being undertaken by Talico. Thus, it would have a positive material impact on the business model of the company. On the other hand, the commercial projects of Talico have progressed before the project timeline and require continuous technical support which will be provided by the company. Thus, the business model of the company would now split between IoT consultancy and IoT/OTT platform delivery. Further, the company would resell opportunities for the full technology stack which would under its control.

Stock Performance:

The shares of TV2 have generated a good YTD return of 80%. By the end of the trading session, on 12 June 2019, the price of the shares of TV2 was A$0.012, up by 33.33% as compared to its previous close. TV2 has a market cap of A$21.41 million and ~ 2.38 billion outstanding shares.


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