Rhinomed Limited

Section 1: Company Overview and Fundamentals Insights

1.1 Company Overview

Rhinomed Limited (ASX: RNO) built a nasal technology platform that improves airflow and capabilities for both drug delivery & diagnosis. The company is engaged in the research, development, and commercialisation of consumer and medical devices.

1.2 The Key Positives, Negatives, Investment Highlights, and Risks

1.3 Top 10 Shareholders: The top 10 shareholders together form ~68.91% of the total shareholding. George (W. Whitney) and McBain (John) are holding a maximum stake in the company at ~39.23% and ~18.52%, respectively.

1.4 Key Metrics:

During 3QFY22, the company recorded a growth in revenue of 203% on a year-on-year basis. In addition, the cash cycle days for 1HFY22 stood at 103.2 days, lower than 133.2 days of the Industry Median.

Section 2: Business Updates and Financial Highlights

2.1 Business Updates:

2.2 Results Highlights of 3QFY22: The consumer health units shipped have increased by 104% in YTDFY22 relative to the FY21 figure. The research and development cost has declined by 25% to AUD 0.287mn in 3QFY22 (2QFY22 AUD 0.381mn), indicating the advanced stage of RNO's new technology development.

Section 3: Key Risks and Outlook:

Section 4: Stock Recommendation Summary

4.1 Price Performance and Technical Summary

4.2 Stock Summary

Markets are trading in a highly volatile zone currently due to certain macro-economic issues and geopolitical tensions prevailing. Therefore, it is prudent to follow a cautious approach while investing.

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is July 27, 2022. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.

Technical Indicators Defined: -

Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.

Resistance: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Resistance 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Resistance 2 may act as the crucial resistance level for the stock.

Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.

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