If the margins of InterPrac are anything to go by, then this ~10m increase in revenue should correspond to about a +.75m NPAT on the previous guidance. We'll say .3m to be conservative. Interprac only represents 7 months of revenue so statutory (full year) NPAT from this division is more in the order of 1.3m-2.6m.
I am expecting an NPAT of at least 2.8m and statutory NPAT of around 4m.
Sector PE is 13.76 so that should correspond to at least 38.5m and up to 55m market cap.
Add to this just an increment of growth (even though NPAT is up 300%+) and the margin for error is easily excused, a tad of speculation will go a long way here as it's a microcap.
Company is also maturing and available to pay dividends with its very strong cashflow.
On top of this the sell side is incredibly thin and TA wise we're at the top end of a channel and have had a huge volume spike. Tax return buying should also give the sector a nudge so IMO I'm calling a rerate imminently.
SEQ Price at posting:
34.0¢ Sentiment: Buy Disclosure: Not Held
