Brokers' take



APRIL 9 CLOSE: $0.099

RHB Research, April 9

Moya's founding shareholder, Moya Holding, sold out its stake in the group.

In January, it sold a stake to majority shareholder Tamaris Infrastructure at 10 cents each.

This was followed by a sale to Gateway Partners - a private equity fund that is now a substantial shareholder - in April at 11 cents per share or a 10 per cent premium. We believe this is a vote of confidence on the company's growth prospects.

We understand the management is currently in talks with the Indonesian water authority (PDAM) to extend to 27 years the concession for its Acuatico assets (which have seven years remaining).

An extension would benefit Moya Holdings Asia and would lead to a re-rating of the stock.

With more than $100 million in cash on its balance sheet, more potential acquisitions could materialise. We believe Moya is likely to continue to acquire and consolidate the Indonesian private water treatment players, which would further boost its earnings growth.

The company may also use part of its cash hoard to lower debt and reduce financing costs of $7 million per quarter currently.

Management aims to reach an overall 20,000 lps (litres per second) from its existing 13,000 lps capacity this year.

With further cost savings, volume expansion and the recovery of its non-revenue water providing strong organic growth - and possibly, additional acquisitions in the pipeline to further boost its earnings - the outlook is bright for Moya.



APRIL 9 CLOSE: $0.575

UOB Kay Hian, April 9

Given the market volatility, the share price has retraced 29 per cent from its peak, presenting an excellent entry opportunity.

This year looks to be a promising year as initiatives in the past year are expected to bear fruit.

These include the recognition of sales from Faire Leather (of over $400,000) from its launch in Kickstarter in Nov 17 and its announcement in early January that it had successfully secured over 20 new consumer brands.

Y Ventures has also grown its online book distributorship from one to five over the past six months, with meaningful contributions from this year onwards.

The potential partnership between Y Ventures and SingPost to develop Aora - a global buying platform focusing on cross-border purchases - could spell a new growth trajectory for the former.

Following our earnings and revenue upgrade, we maintain Y Ventures' target price at $0.80, based on 2.6 times 2019F P/S (price to sales), which is at a 20 per cent discount to listed peers'. Our valuation could have upside as we have not assumed an uplift from the new platform since this is only an MOU.

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