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 The company indicated it expects the ICS business will grow strongly once government support is withdrawn in March 2021.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. 

The post Credit Intelligence (ASX:CI1) share price takes a 19% nosedive appeared first on The Motley Fool Australia.

We take a look at the company's buy-now-pay-later (BNPL) announcement that's driving investor interest.

What did Credit Intelligence report on its BNPL offering?

The Credit Intelligence share price is blasting higher following this morning's ASX release reporting the commencement of lending by YOZO Pay.

The YOZO Pay service is targeted at small to medium enterprise (SME). The service offers a BNPL product that Credit Intelligence says will give its customers greater flexibility and transparency. Importantly, it uses an artificial intelligence (AI) system which was developed in collaboration with UTS Sydney. Consequently, YOZO Pay can assist SMEs in overcoming cashflow challenges.

Credit Intelligence, a debt restructuring and personal insolvency management services company, highlights the following benefits of the AI-enhanced YOZO Pay:

• Minimal human interaction is required
• Flexible repayment instalments
• Pay for what you use
• Same day loan approval
• Automatic borrower limit changes
• No property required for collateral

Credit Intelligence is still working with UTS on additional developments of its AI engine. Looking ahead, the company hopes to offer new features including 24/7 loan approvals and the ability to assist SMEs around the clock.

Comments from Management

Regarding the BNPL rollout, Jimmie Wong, Executive Chairman of Credit Intelligence said:

We are excited to have commenced lending via the YOZO Pay BNPL service for SMEs. This is a truly unique offering and is set to revolutionise lending for small and medium enterprise by providing a product which is not only aligned with the operations and cashflow of the business, but is also faster, cheaper and more transparent for the SME owner to use – allowing them more time to focus on the day-to-day running of their business. This SME BNPL service is totally different from other personal BNPL products being offered in Australia right now.

Credit Intelligence share price snapshot

Over the past 6 months, the Credit Intelligence share price didn't do much. That is, right up until 12 February when the share price took off like a rocket.

Since 12 February, Credit Intelligence shares are up 183%. That's the same share price gain posted for 2021. By comparison, the All Ordinaries Index (ASX: XAO) is up 1% year-to-date.

The post Here's why the Credit Intelligence (ASX:CI1) share price is soaring 15% appeared first on The Motley Fool Australia.

The Credit Intelligence share price opened at 3.6 cents this morning after closing at 3.5 cents yesterday. But soon after open, the company's shares exploded to reach a high of 6 cents a share shortly after lunchtime today.

That means the company's shares were up around 71% at one point, despite having cooled off since. Today's closing price also means the Credit Intelligence share price is now up 130% since 16 December last year. Today's moves were enough to warrant an ASX 'please explain' speeding ticket this afternoon as well.

So what is this company? And what is sparking such a dramatic re-valuation?

Credit Intelligence is a debt restructuring and personal insolvency management business. It operates primarily in Hong Kong and Singapore, although the company has expansion plans in place for the Australian market.

What's been driving the Credit Intelligence share price?

The company likely started turning heads following its annual general meeting late last November. In this meeting, Credit Intelligence reported that its revenues for FY2020 had grown by 125% (from $6.05 million to $13.61 million) and its profits by 384% (from $934,000 to $4.54 million). The company also doubled its dividend and reported earnings per share (EPS) growth of 333%.

Interestingly, Credit Intelligence told investors that the company was being supported by "favourable macroeconomic conditions". As such, it advised the market that "COVID-19 related unemployment [and the] recession will massively increase demand for [its] services… for years to come" and that these conditions are "not yet reflected in growth numbers".

Although these announcements were evidently well received by investors at the time, it doesn't explain what's happening today with the Credit Intelligence share price. Indeed, the company has not released any market-sensitive information or major announcements in recent days, save for a release back on 8 February.

In that release, Credit Intelligence discussed its plans for a "next-generation, technology-enabled platform that will provide a better solution for the coming wave of millennial debts caused by BNPL [buy now, pay later services]".

There have been a plethora of companies involved in the buy now, pay later arena being inundated with volume surges and share price spikes this week. As such, it is possible that Credit Intelligence has been caught up in this euphoria.

However, in response to the ASX's pricing enquiry today, Credit Intelligence flatly denied any knowledge of possible causes for the surge in activity. It did not offer any speculation as to the underlying cause of the Credit Intelligence share price spike either.

The post Yowza! The Credit Intelligence (ASX:CI1) share price is up 130% in 2 months appeared first on The Motley Fool Australia.