Afterpay Touch Group Ltd (APT): APT remains TEK’s largest single holding and continues to exceed expectations with the market penetration of what it calls its “buy now, receive now, pay later” service to Australian retailers and consumers. APT is still growing strongly, and as at 31 December 2017 had more than 1.5 million customers and more than 12,000 retail partners in Australia and New Zealand.
This growth in customers and retail partners has led to APT representing more than 25% of all Australian domestic apparel online sales and more than 8% of all online physical retail sales. To me, this appears just the beginning for APT with further growth opportunities identified in several new verticals and service industries both domestically and overseas.
After a spectacular run APT shares came off their highs recently amid some profit taking and short selling based on speculation that APT will be targeted by regulators looking to clamp down on the fast growing payments sector.
At TEK, we are confident that APT has taken a proactive and transparent approach towards the regulatory environment and dealing with any prospective challenges to its business model.
We believe APT Executive Chairman, Anthony Eisen, CEO, Nick Molnar, Group Head, David Hancock, and their team have done a tremendous job positioning the company so far, and we continue to believe strongly in their ability to achieve their growth ambitions.
TEK Price at posting:
26.0¢ Sentiment: Buy Disclosure: Held
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