KINATICO LIMITED (KYP)
Share Price Analysis and Chart

10/02/2025

1

Initiation of coverage with Buy, High Risk

$0.28

64.71%

Shaw and Partners initiates coverage on Kinatico, a provider of compliance software solutions, with a Buy, High-risk rating and a 28c target, citing multiple structural tailwinds. One key solution provided is employee onboarding for complex industries.

The broker expects tailwinds from an application and data security compound annual growth rate (CAGR) of 15%. The analysts forecast management will grow revenue to $33.9m by FY27, with projected FY24-27 Saas Revenue CAGR of 41%.

For HR compliance, the broker points to additional structural drivers, including the Security of Critical Infrastructure Act (SOCI) amendments and the Aged Care Royal Commission.

According to Shaw, automation, cost rationalisation, and outsourcing should drive a material uplift in earnings (EBITDA) for Kinatico.

28/01/2025

2

Outperform

$0.22

29.41%

Taylor Collison notes Kinatico's SaaS revenue is growing at a nearly 50% pace with a pipeline to match and is cash accretive. 

The broker remains attracted to the company's simplified compliance solution, supported by a pre-existing base of over 10,000 corporate data verification customers and the imminent launch of its new platform. 

The broker's FY25 projections remain largely in line with Kinatico's but FY26 estimates have been upgraded due to cost-base efficiencies and slight revenue increases. Free cash flow estimate for FY26 is raised to $3.3m from $1.7m due to decreasing software development spend.

Target price increases to 22c from 15c. Rating remains at Outperform.

FORECAST
Taylor Collison forecasts a full year FY25 dividend of 0.00 cents and EPS of 0.25 cents.
Taylor Collison forecasts a full year FY26 dividend of 0.00 cents and EPS of 0.69 cents.