QANTM IP Limited (QIP): Bringing ideas to life

Bell Potter

Stockbroker

Differentiated on several fronts that provide key benefits

Key areas of differentiation include the Firms’:

  1. Shared industry recognition as high quality ‘premium end’ service providers as reflected by numerous industry awards;
  2. Strategic focus on local clients which generate longer (hence more forward visibility) and greater revenue opportunity per application, as well as creating greater scope to attract referral work from Foreign Associates; and
  3. Strengths in strategic advice which is a key service skill that we believe helps establish & build client relationships.​

 

Attractive margin upside and Asian expansion opportunity

We believe there are attractive margin upside prospects for QIP through productivity improvements and synergies between the two Firms. Also, QIP has an early stage office presence in Singapore that we believe lays the foundations of a significant new growth frontier in Asia. We assume a conservative allowance of ~$3m in productivity/synergy benefits by FY20 (with EBITDA margin rising to 27%) and make no allowance for growth in Asia, hence note the scope for upside to our medium/long-term forecasts. Also, acquisition opportunities that accelerate scale benefits add further upside risk.

[QIP_Initiation_12Sep16.pdf]


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Bell Potter Securities is a leading Australian stockbroking, investment and financial advisory firm that provides a comprehensive offering of financial services to a diversified client base that includes individuals, institutions and corporations.

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