Emerging Companies Conference 2014

About the author:

Author name:

By Nick Harris

Job title:

Senior Analyst

Date posted:

20 November 2014, 1:53 PM

Sectors Covered:

Telecommunications, Technology

Morgans recently hosted 12 companies at our Emerging Companies Conference.

The group consisted of a diverse range of up-and-coming businesses and while these companies may be small, many operate in markets that provide big potential for growth.

Key highlights are listed below:

Companies of interest

Netcomm Wireless Limited (NTC, market cap $75m)

NetComm Wireless has taken over 30 years of engineering fixed line modems (for internet connectivity) and expanded this skill set into machine-to-machine computing and the internet of things (two tech mega-trends set for substantial growth).

NTC has strong relationships with utility providers. These take time to expand from contracts to cash flow. Consequently NTC has a growing pipeline of customised products with high quality and sticky customers.

Rhype Limited (RHP, market cap $102m)

RHP licenses cloud based software, from multinationals like Microsoft, for channel partners (resellers) who merge various cloud solutions for end user consumption. RHP offers investors a capital light exposure to multi-geography, multi-vendor cloud computing.

It also has the enviable position of building a fast growing (30-40% pa) recurring revenue base which limits the operational downside.

Impedimed Limited (IPD, market cap $157m)

IPD engages in the development and distribution of medical devices using bioimpedance spectroscopy technologies for use in the non-invasive clinical assessment and monitoring of human disorders and diseases. IPD has already demonstrated the significance of the technology and what the end users and funders are prepared to pay.

The recently announced entitlement offer will ensure a strong balance sheet as the company accelerates sales and marketing once the reimbursement takes effect. The next 12 months should be an exciting time as we see how the sales uptake unfolds.

Simonds Group Limited (SIO, market cap $270m)

SIO offers a unique exposure to the Building and Construction sector, operating both residential construction and vocational education divisions. SIO's impressive sales and operational focus is assisted by low capital intensity and strong cashflow generation.

Investment highlights include a strong balance sheet (A$22m net cash); high ROE business model with solid dividend yield; and strong forecast growth via two aligned businesses.

Think Childcare and Education Ltd (TNK, market cap $45m)

The sustained growth in childcare demand in Australia has been developing due to favourable industry dynamics and strong government funding.

TNK's focus is on underperforming centres and their ability to turnaround distressed or low occupancy centres should bode well for its target of 100 centres within two years.

More information

Morgans clients can login to access further analysis on all 12 companies that presented at this year's conference. If you would like more information, please contact your Morgans adviser or nearest Morgans office. 

Disclaimer: The information contained in this report is provided to you by Morgans Financial Limited as general advice only, and is made without consideration of an individual's relevant personal circumstances. Morgans Financial Limited ABN 49 010 669 726, its related bodies corporate, directors and officers, employees, authorised representatives and agents (“Morgans”) do not accept any liability for any loss or damage arising from or in connection with any action taken or not taken on the basis of information contained in this report, or for any errors or omissions contained within. It is recommended that any persons who wish to act upon this report consult with their Morgans investment adviser before doing so.