The Credit Intelligence (ASX:CI1) share price is up 100% year-to-date, but slumped 19% today on half-year results
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The Credit Intelligence Ltd (ASX: CI1) share price is somewhat reminiscent of a Gamestop chart.
Its shares started to break out on Tuesday 16 February, closing 12% higher at 3.5 cents on the day with no news. In the following days, its shares climbed as much as 140% before finally, the company announced a new BNPL service for the small and medium-sized enterprise (SME) market this Tuesday.
Perhaps only the word ‘BNPL’ was needed, but the announcement sent its shares running as much as 75% higher to 13 cents on the day, before closing with a gain of just 3% at 7.8 cents.
At its current level of 6.3 cents the Credit Intelligence share price is still 100% higher since its initial breakout last Tuesday. But its shares have halved from peak to trough.
What’s driving the Credit Intelligence share price today?
Credit Intelligence’s core services are centered around debt-restructuring in Hong Kong and Singapore. On 17 December 2020, the company announced the acquisition of a 60% interest in Yozo Finance Pty Ltd and its leading fintech platform with its proprietary capabilities, including the BNPL service Yozo launched last week.
Today, the company announced its half-year results, which highlight a 21% increase in revenue to $7.37 million and 25% increase in net profit to $1.58 million.
The company’s Hong Kong business results were in line with the prior year, notwithstanding the impact of COVID-19.
Its core bankruptcy and individual voluntary arrangement services continue to trade well, and the company expects that deferred revenue as a result of COVID-19 will show up in the year ahead.
Its Singapore business results were mixed with government support for SMEs resulting in its subsidiary, ICS Funding, delivering a result well under the prior year, while its personal loans business, Hup Hoe Credit, performed strongly for the half year. The company indicated it expects the ICS business will grow strongly once government support is withdrawn in March 2021.
The contribution from the group’s two new Australian acquisitions, Chapter Two in July 2020, and Yozo in December, are not yet material.
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Motley Fool contributor Kerry Sun has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.