finnCap Research Company Notes - 24 June 2019

Jun 24, 2019 / News

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Sector: Mining

Tri-Star Resources (TSTR) : Corp

Operations update

Key data                              

  • Share price (p)                  39.5
  • Target price (p)                68.0
  • Market cap (£m)                              37.2
  • Enterprise value (£m)                    41.0

Tri-Star has released a further update on progress being made with the commissioning of the SPMP antimony and gold production facility in northern Oman. Tri-Star’s principal asset is its 40% shareholding in SPMP; this in turn owns the Sohar plant. The remedial works announced in February are now largely complete; this includes the installation of a new gas cooling plant and modifications to the electric furnace. This has now been tested with a variety of calcine inputs and SPMP is now ready to move onto final commissioning. We maintain our 68.0p price target.

Martin Potts

020 7220 0544

mpotts@finncap.com

 

Sector: Financial & Insurance

Morses Club (MCL) : Corp

Accelerating the move into online banking

Key data                              

  • Share price (p)                  155.0
  • Target price (p)                190.0
  • Market cap (£m)                              201.7
  • Enterprise value (£m)                    207.5

With the acquisition of U Holding (U Account), Morses Club is accelerating its stated strategy of moving into online banking. The latest acquisition is an addition to the stable and highly cash-generative HCC operations, adapting to changing customer behaviour in this segment, while building the product offering for a new and larger customer pool. While the short-term impact on profits will be modestly negative, the longer-term effects of owning the U Account platform are clearly positive for Morses Club in our view.

Kim Bergoe

020 7220 0550

kbergoe@finncap.com

 

Sector: Industrials

Velocity Composites (VEL) : Corp

Interims: Stabilised trading and positive Wesco deal

Key data                              

  • Share price (p)                  22.0
  • Target price (p)                50.0
  • Market cap (£m)                              7.9
  • Enterprise value (£m)                    4.1

Interim results confirm that the recovery in gross margin continues, while the recently announced collaboration agreement with Wesco provides evidence of commercial traction, with a new hub in the important North American aerospace market now being planned. This relationship has the potential to be game-changing for the company and its ability to scale up. Investment in new facilities is being stepped up. We retain our existing forecasts and 50p price target.

David Buxton

020 7220 0542

dbuxton@finncap.com

 

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