Macquarie continues to envisage earnings headwinds for Suncorp and a risk to consensus estimates. The broker believes the company’s cash return targets are becoming increasingly unachievable. Some change to FY20 guidance is expected at the August result.
Read MoreFollowing a fatal accident at Golding’s Baralaba North coal mine, operations have been halted pending investigation. NRW Holdings’ Baralaba contract represents some 20% of FY19 mining division earnings and extends to 2021.
Read MoreThe company ended June with $86.7bn in funds under management, up 24.7% over the financial year. Morgans expects an update on new products at the August results, such as the US sustainable and retirement income product, which are medium to longer term growth options.
Read MoreThe Didipio operation in the Philippines appears to be at risk of disruption as a contingent of locals are blockading access roads and prohibiting supply trucks reaching the mine. Light vehicles, personnel and food supply continue to access the site unimpeded.
Read MoreThe company will divest GraysOnline and AreYouSelling for $60m to Quadrant Private Equity. The transaction includes a distribution agreement, allowing EclipX to continue benefiting from utilisation of Grays automotive segment as a disposal channel.
Read MoreAs dry conditions continue and farming costs increase, Australia’s milk supply is expected to decline again in FY20. Dairy Australia forecasts Australian milk supply to contract a further -3-5% in FY20 after declining by -7-9% in FY19.
Read MoreUBS has surveyed investors, finding the biggest issue is competition in the NZ telco market. The broker suggests there is a low probability of a dividend reduction, as competition has been more rational in 2019.
Read MoreThe company has downgraded its underlying earnings (EBIT) outlook for FY19 by -NZ$30m, the result of a disappointing Australian division. Given the sharp decline in Australia, management’s view that FY19 was a successful year is a surprise to Deutsche Bank.
Read MoreGame installation data in NSW have revealed Aristocrat Leisure has suffered a -35-40% decline in volumes and captured 55% ship share, its lowest share since 2015. NSW accounts for about half of Australia’s gaming machine shipments.
Read MoreThe broker sees a risk in the WA domestic gas market remaining relatively well supplied by capacity increases at other projects, limiting Beach’s upside on the west coast.
Read MoreCredit Suisse extends its review of the company’s debt levels, reducing FY19 net debt estimates to US$4.6bn from US$5.1bn. This adds around $0.30 to valuation.
Read MoreUBS updates the main earnings drivers, including average occupancy in the second half, now estimated at 92.2% versus 93.6% in the first half. Second half government revenue per occupied bed is up 7% and second half staff costs per occupied bed are up 2%.
Read MoreCiti increases estimates for FY20 earnings (EBIT) by 1% and FY21 by 5% to reflect the company’s deal with network customers.
Read MoreUBS updates its database for iron ore capital expenditure, now estimating total investment in Western Australia could be around US$21bn. This expenditure is expected to be delivered through FY19-22.
Read MoreMorgans suspects that second half trading has stayed subdued, although rising e-commerce platform prices are a positive sign. The broker also notices increased shelf space from some competitors while Bellamy’s Australia has a less favourable position in some stores.
Read MoreCharter Hall has upgraded FY19 operating earnings growth guidance to 24% from 14-17%. The broker had assumed 16%. The upgrade largely reflects an upgrade to the Charter Hall Office Trust performance fee. Upside to this fee, and to assets under management, suggest upside risks to FY20 guidance, the broker believes.
Read MoreCredit Suisse believes the company needs a payback on its investments. FY19 earnings guidance was reduced to net profit of $87-89m recently and the company has acknowledged a challenging June quarter.
Read MoreThe company has revised FY19 guidance to $7-8m from $13-18m previously, with the slippage attributed to transactions not occurring before balance sheet date. The company did not mention its prior FY20 operating earnings (EBITDA) guidance of $26-30m.
Read MoreThe outlook for the property division in western Sydney is bright, UBS assesses. The new airport, due in 2026, and the proposed developments are leading to escalating land values.
Read MoreThe company has recently reiterated net profit growth guidance for FY19 of 9% and will host an investor briefing on July 3. Morgans assesses the company is capable of sustaining a solid single-digit organic growth profile across the forecast years.
Read MoreOil Search will exercise its option to increase its equity interest in the Alaskan assets to 51% from 25%. Citi currently expects the company will need to raise US$200-500m in new equity in 2020, depending on the tolerance for corporate debt and discretionary expenditure.
Read MoreCiti has revised down earnings-per-share forecasts for Ansell, citing late deployment of acquisition capital and an extension of the buyback period.
Read MoreMorgans raises HRL Holdings’ target price to 11c from 10c after the company confirmed it was comfortable with second-half earnings consensus and should deliver its +84% second-half skew.
Read MoreSonic Healthcare has sold its 85% stake in GLP Systems. Deutsche Bank retains its Hold rating while lifting the price target to $26.32 (was $24.70).
Read MoreMorgans downgrades Monash IVF to Hold from Add to reflect recent share price strength.
Read MoreSteadfast has entered into an agreement to buy the rebate rights to Insurance Brokers Network Australia, which is currently partnered with AUB Group ((AUB)). The broker calculates 2-3% accretion but suggests the medium term opportunity of an increased network could be much greater.
Read MoreDexus management announced it has externally revalued 109 of its 114 assets, resulting in an estimated $250m valuation uplift, or a 1.6% increase to its December 2018 book value.
Read MoreThe broker describes Collins Foods’ full-year result as solid, driven by continued acceleration in KFC Australia sales growth and strong cash conversion. Delivery is becoming an important growth driver and 20 more KFC outlets were added to aggregator platforms in the second half.
Read MoreA site visit to Woodside Petroleum’s Karratha failed to inspire the broker. While the company has moved towards a more conservative contracting strategy on its Scarborough project, bringing greater certainty for shareholders, it comes at an increased cost.
Read MoreUpon returning from a company organised Illawarra site visit, Citi analysts note that while coal quality is first class, costs and sustaining capital are high. The fixed cost base is high, the analysts emphasise.
Read MoreCSL is moving to direct distribution into China after gaining its Good Supply Practice Licence through the acquisition of Guangzhou Junxin Pharmaceutical last year.
Read MoreViva’s update confirmed refinery earnings are even worse than the broker had feared, but there are signs of strength in Fuels & Marketing relative to the weak update provided by Caltex ((CTX)) last week. The broker doesn’t believe refining margins can get much worse, and retail margins are showing signs of improvement.
Read MoreThe combination Amcor-Bemis has started selling off non-core assets and Deutsche Bank analysts suggest with the proceeds from these divestments management could announce a share buyback of up to US$1bn as early as the full year result in August.
Read MoreCSL had earlier flagged that transitioning to its own distribution channel in China would have a one-off impact on FY20 financials. On Friday the company quantified this impact in the form of a decline in albumin sales by -US$340-US$370m.
Read MoreChampion Iron’s phase 2 feasibility study portrays attractive metrics for expansion, the broker notes, with an internal rate of return in excess of 30%. The final hurdle is to secure financing by mid-2020.
Read MoreGoodman Group’s investor day presentation has left the broker’s investment thesis intact. Demand remains strong globally, and data centres and cold storage are becoming increasingly important tenant categories.
Read MoreUBS reviews the commercial opportunity for the company’s reconstituted high-density lipoprotein product. The product is currently in a phase 3 clinical trial with the final result expected in 2022.
Read MoreAs part of its capital markets briefing, the company has laid out medium-term targets. Cost targets are in line with expectations and Morgans expects subdued revenue growth over the medium term. No special dividends or buybacks are forecast.
Read MoreMorgans is more confident in the outlook for the regulated network after the briefing. However, concerns continue regarding competitive pressures above rail. With the revenue allowance for operating costs fixed until FY27 for the UT5 agreement, management was upbeat about the cost-cutting potential.
Read MoreNews Corp is reviewing its strategic options for News America Marketing, including a potential sale. Revenue has been under pressure in recent years, declining -6% in FY18. The business provides a range of marketing solutions to advertisers.
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DOWNLOAD RESEARCH REPORTSecures binding contract with Tier-1 OEMUS based anode active project gathers momentumMagnis Energy Technologies (MNS.ASX) – MNS is planning an anode active facility in the US and recently announced a binding, yet conditional, contract for the supply of anode active with Tesla. The contract is for a minimum 17.5kt/year with an option to purchase another 17.5t/year. Conditions precedent carry a tight development timeframe, with first production scheduled for February 2025. Site selection is underway and co-locating with an OEM on a brownfields site makes sense. Long lead items have been ordered and detailed engineering and design is expected to commence soon. |
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December Quarterly Report: Q2 FY2023Looking past the rain – there’s a rainbow.TerraCom released their operating results for the December quarter FY2023 with operating metrics being in line with our forecasts. Unseasonal rains in both Australia and South Africa contributed to operational and logistical issues across all mines, however guidance for annual production at Blair Athol is unaffected and highlights the quality of TerraCom’s skills in operational management. We continue to like the stable operating metrics around the company’s Australian operations and see potential for the South African operations to benefit from increased management focus given the rationalisation of operations following the closure of the Ubuntu mine. Corporate Connects overall financials remain unchanged as does our target price of $1.35 share. We maintain our forecast for a fully franked quarterly dividend of 7.5c/share to be paid in the March and June quarters of FY2023. |
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DOWNLOAD RESEARCH REPORTHigh performance synthetic anode & cathode materials Building a US based materials supply chainNOVONIX (ASX:NVX) – is scaling a synthetic anode materials plant in the US and piloting nickel rich cathode material in Canada. Why? China is dominant and growing – 100% of global natural anode and 68% of synthetic anode is refined in China. In short, China controls the global midstream battery chain by controlling 60% of chemical refining, 87% of anode manufacturing, 61% of cathode manufacturing and 73% of battery manufacturing. It is global battery supply and price domination at scale. |
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DOWNLOAD RESEARCH REPORTAntisense Therapeutics (ANP) Taking a Quick Approach to Long COVIDThis report looks at the results of a collaborative study Antisense undertook which looked at the largest protein expression database in Long COVID-19 patients who experienced neurologic symptoms well after the primary or acute SARS-CoV-2 infection was considered over (Groups 1 & 2, with 48 subjects Group 2 comprising a single patient from a different clinical site). The symptoms and others experienced by such patients result in a highly significant amount of illness, possibly more than all primary SARS-CoV-2 infections i.e COVID-19. |
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DOWNLOAD RESEARCH REPORT4Q reveals more focus on profit and cash flow• LBY’s 4Q FY22 quarterly activities update showed continued solid growth in top line metrics, albeit slowing, with GMV of NZ$203m (+26% on pcp) and income of NZ$12.1m (+23% on pcp).
• Net Transaction Margin (NTM) disappointed at -0.5%, due to further increase in credit losses from 4.0% to 4.9% of GMV. However, new fraud and credit risk management tools have seen losses recover materially with NTM back to 1.2% in March and LBY is confident of further recovery in coming months.
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DOWNLOAD RESEARCH REPORTSigns MOU with Ford Company – Kachi is now sold out!Lake Resources (LKE. ASX) – LKE has signed two non-binding MOU’s in the space of 10 days. Ford Company (Ford) has signed an MOU for ~25,000t/year and last week Hanwa, a Japanese commodity trader signed a MOU for up to 25,000t/year. Subject to execution, this is an amazing feat as Ford and Hanwa are prepared to enter into longer-term strategic partnerships with LKE. Commercial negotiations are still ongoing but are expected, especially if Ford & Hanwa inject new equity into LKE, to further de-risk the project financing & thus ensure LKE and Kachi are fully funded. |
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DOWNLOAD RESEARCH REPORTStrategic Vanadium-battery growth with Titanium & Iron earnings resiliencyTNG Ltd is an ASX-listed technology owner and developer of the world-class Mount Peake near-surface vanadiferous titanomagnetite deposit. To unlock value, TNG will concentrate ore from its central Northern Territory mine for processing through its patented TIVAN® process produce three premium quality revenue streams: hi-purity vanadium pentoxide (V2O5) for steel alloys and Vanadium Redox Flow batteries, a quality titanium pigment for paints and a premium steel input with >64%Fe iron ore fines. |
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Promising exploration and development update while SOP prices continue to riseTwo recent gravity surveys have considerably exceeded expectations and revealed potential for extensions to the existing MRE at Lake Throssell, plus a material growth opportunity at Lake Yeo. This reinforces the potential for a multi-decade, Tier-1 SOP production hub based around Lake Throssell. TMG is currently completing work towards the PFS due early 2023, including drilling to start in Q3 2022, evaporation trials and permitting activities. Results from these programs will support the PFS and any future resource upgrade. Benchmark SOP prices have risen to ~US$940/t due to recent geopolitical developments. The Oct 2021 Scoping Study assumed a SOP price of US$550/t and contained a sensitivity analysis showing every 10% increase in price drives a +$144m increase in the project NPV of $364m. The c.70% increase above the Scoping Study thus implies a project NPV of ~$1.4bn. |
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DOWNLOAD RESEARCH REPORTIncreasing our TargetDespite the lower realised oil and gas price, which fell by 5.4% and 19.7% respectively in August, Calima managed to show improvement in its key business metrics. We expect higher production in November due to the contribution by the new Thorsby wells which will be drilled in August/September which will see Calima meet its 2021 production guidance of 4,500 boe/d. |
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DOWNLOAD RESEARCH REPORTEmerging Financial Wealth Advisory GroupWT Financial Group Limited (WTL) is a growing diversified financial services company, founded in 2010 and listed on the Australian Stock Exchange (ASX) in 2015. Its advice and product offerings are delivered primarily through a group of independent financial advisers operating as authorised representatives of WTL under its Wealth Today Pty Ltd (Wealth Today) and Sentry Group Pty Ltd (Sentry Group) dealer group operations. It has around 275 advisers across more than 200 financial advice practices Australia-wide. It also operates a direct-to-consumer operation under its Spring Financial Group brand. |
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DOWNLOAD RESEARCH REPORTImmutep Taking the Fight to CancerIn May 2021, Corporate Connect analyst Marc Sinatra published a comprehensive research report on ASX-listed biotech Immutep Ltd (ASX: IMM). So impressed was he with IMM that Corporate Connect felt it imperative that a follow-up report be released placing a valuation on the company, because the market was not seeing the vast potential of eftilagimod alpha (efti). This follow-up report has been released today. Using comparables, after adding cash back to their EV estimate and dividing by the total number of issued shares, Corporate Connect now places the fair value of an Immutep share at $A2.20. |
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DOWNLOAD RESEARCH REPORTMarket leading lifelong learning platform technology company in Australia and SE AsiaPayGroup (PYG) delivers multi-country BPO services and cloud SaaS HCM solutions, assisting companies to manage employees in multiple, complex jurisdictions. The company has many growth opportunities, including new clients, new jurisdictions, new products, partner expansion, and new revenue sources. PYG’s scalable business model allows operating leverage and with savings from in-housing third party technology, support margin expansion. |
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DOWNLOAD RESEARCH REPORTMarket leading lifelong learning platform technology company in Australia and SE AsiaOpenLearning (OLL) is a higher education technology company that operates a scalable online learning platform through a software-as-a-service (SaaS) business model and provides a global marketplace of high quality courses for learners of all levels. Its primary customers are education providers based in Australia and South-East Asia (primarily Malaysia). OLL started operations in Australia in 2012 and expanded to Malaysia in 2015, Singapore in 2018, and recently also Indonesia. |
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