SPARK Plus publishes research report on Aspermont in October 2020

Spark Plus, a leading Singapore based corporate advisory firm, recently published a detailed research report on Aspermont (ASX:ASP) which can now be accessed via this link.

The Spark Plus analyst, Cyprus Sia, interviewed key Aspermont management and made industry peer comparisons with other media/technology companies.

Spark Plus highlights re Aspermont: -

  • Strong earnings growth to benefit from rising interest in mining sector and monetisation of Aspermont user and data bases
  • Earnings growth to benefit as scalable subscriber base facilitates introduction of new languages and countries such as China and Russia.
  • Significant incremental growth expected from new business lines, such as virtual events and exhibitions, content agency and lead generation businesses.

The research report comprises 13 pages of detailed analysis. Spark Plus considers three SaaS metrics that best show Aspermont's performance and key audience strengths: -

  • ARPU (average revenue per unit) with 14% CAGR, implying a stable, long-life client base.
  • NRR (net retention rate) of 100%, suggesting strong and sustainable organic growth potential
  • Digital Users with 33% CAGR, confirming strong and growing demand for Aspermont's services, also providing the company with a data set that can be monetised in various ways and at high margins.

Spark Plus concludes that: -

"The market has overlooked Aspermont's business transformation as the company trades at a steep 90.6% discount to its peers. The correlation study on PS ratio and revenue growth YoY of the SaaS peers suggest a direct relationship is appropriate. By linear fitting Aspermont 16.73% YoY revenue growth, we obtain a forward PS ratio of 6.38 which suggests a market capitalisation of $92.8M, some 6.79X the current $13.7m capitalisation. We expect Aspermont to achieve a higher capitalisation as the market increasingly understands the SaaS model and the data driven business lines moving forward"

Click here to read the full report.