Corporate: Are you worried about the Hong Kong crisis? This company isn’t
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One ASX small cap exposed to the Hong Kong crisis is not worried at all. Namely, debt restructuring company Credit Intelligence (ASX: CI1).
The company has business in Hong Kong (and Singapore) and since the protests first erupted in June speculation has suggested businesses are leaving. But Credit Intelligence released a letter this morning believing it will continue to thrive in the Fragrant Harbour.
The company said the events were not only no hindrance to them but could be an opportunity.
“The company’s Hong Kong Business performance is inversely related to poor economic conditions and uncertainties,” it said. “The current circumstance [sic] in Hong Kong could result in an increase in bankruptcies and Individual Voluntary Administration (IVA) in coming years.”
It admitted a reduction in monthly payments of debts owed was possible but stressed it was not revenue forgone, just received later. Furthermore it asserted “the anticipated increase in one off mobilisation fees on new bankruptcies would negate any decrease, if any, in revenue from monthly debt payments”.
“From an overall perspective, the company’s HK business will continue to generate sustainable profits for the CI1 Group.”
It also told shareholders it was committed to entering the Australian market and was actively looking for potential partners although none yet were complementary to its business model.
Credit Intelligence opened unchanged this morning. However, it sits 13 per cent higher than early June, when the protests first broke out.
Fintech payments company QuickFee (ASX: QFE) has jumped 14 per cent this morning after providing a monthly update. It lent 62 per cent more last month than in July 2018. It also announced this morning two new sales hires in the US as it seeks to enter that market. Full year results are due on August 27.
Whitehawk (ASX: WHK) has jumped 10 per cent this morning after announcing a major contract extension – to a “top 10 US financial institution”. The contract was worth over US$825,000 but is now upgraded to a more advanced offering of its software. Now the financial institution (which was not named due to cybersecurity sensitivity) will have key findings into a non-technical and actionable report and a Business Risk platform with more features and flexibility than the simple offering.
HT&E (ASX: HT1), the owner of the KIIS radio network and iHeartRadio Australia, announced half year results. It has made an $18.1 million profit after tax, a 34 per cent increase on last year and will pay a dividend of 4 cents per share. However, it warned the radio market has declined recently and it is undertaking a strategic review.
GBST Holdings (ASX: GBT) has also announced earnings, for the full year. It has recorded a net profit after tax of $12.7 million, more than double last year’s profit. CEO Robert DeDominicis said the result was very pleasing. However it will not pay a dividend, noting “the continued high level of investment in our systems requires prudential capital management”.