Reporting Season Summary: 19 Feb 2015
About the author:
- Author name:
- By Fiona Buchanan
- Job title:
- Co-Head of Research, Senior Analyst
- Date posted:
- 19 February 2015, 8:34 AM
- Sectors Covered:
- Property, AREITS
Beacon Lighting (BLX)
1H15 result
NPAT: A$9.1 million; Dividend: 1.8cps
The result was in-line expectations.
Morgans comment
BLX's 1H15 result was at the top-end of recently provided guidance, with NPAT up 35% on the pcp. There is nothing to disappoint in the release with the company clearly benefiting from conducive housing activity in addition to a strong technology upgrade cycle. LFL sales growth was very strong at 11.7% which also brought about significant productivity on costs (CODB % of sales down 510bp). An exceptionally strong result and deserving of the hefty PE.
Decmil (DCG)
1H15 result
NPAT: A$24.3 million; Dividend: 4.5cps
The result was in-line expectations.
Morgans comment
Today's result was in line with our expectations with revenue of A$389.8 (vs Morgs A$393m). As DCG has guided, we expected a weaker 2H as further resource work rolls off and lower margin infrastructure work and lower Homeground occupancy impacts the bottom line. We are likely to make only modest changes to our forecasts which already assume a 58%/42% split in earnings between 1H/2H.
We do acknowledge the fact that DCG is in a much stronger position than most of its peers with a diversified client base, reasonable WIH and cash on hand of A$58m. However, we cannot see how DCG's share price re-rates in the near term until the market has clarity on margin decline.
iiNet (IIN)
1H15 result
EBITDA: A$98 million; Dividend: 10.5cps
The result was below expectations.
Morgans comment
We were expecting a reasonably subdued 1H15 result from IIN but it was still weaker than expected. Operating cashflow was weak but subscriber adds were slightly better than we had expected. IIN could experience further weakness today. Depending on where it settles this may create a buying opportunity but at this stage we retain our Hold recommendation.
Super Retail Group (SUL)
1H15 result
NPAT: A$58.1 million; Dividend: 18.5cps
The result was in-line expectations.
Morgans comment
SUL's 1H15 result was in-line/slightly higher than expectations after a raft of downgrades. Its trading update was very strong, with all three divisions reporting strong comps.
It's been a rough 12 months for the company and while we expect the high growth days are now behind it we are also starting to sense the worst is behind the group as well.
SUL is coming out the other side of its cannibalisation issues and the recent positive comps provide some validity to this being one of the key drivers of recent weakness.
However, regional related weakness will remain while mining activity is low. Management's lack of meaningful strategy change within Ray's is disappointing, although we expect extracting this brand from the division would be messy and difficult (shared overhead, cross over of stores etc).
Expect positive share price response today, although the necessity for further downgrades may temper the reaction a little....but fundamentally, tracking a lot better!
PanAust (PNA)
Full year result
NPAT: (US$221 million); Dividend: Nil
The result was in-line expectations.
Morgans comment
Headline NPAT loss of US$221m (100%) for CY2014 includes exploration and development impairments of US$265. Clearly the new MD has taken a broom to the book value of PNA's development portfolio, including US$142m in Chile and US$27m in Laos. These are non-cash writedowns but it confirms PNA doesn't see potential in these developments in the current metal price environment which isn't surprising.
We ascribe no value to these projects in our NPV, however impairments are never a good look and will only serve to remind marginal investors that PNA's growth remains copper-price dependent.
More details post conference call.
Webjet (WEB)
1H15 result
NPAT: A$9.1m; Dividend: 6.25cps
The result beat expectations.
Morgans comment
WEB has reported a solid result which should be well received. However guidance implies weaker growth in the 2H15. We are likely to retain a Hold recommendation.
More information
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