Reporting Season Summary: 25 February 2016
About the author:
- Author name:
- By Andrew Tang
- Job title:
- Analyst - Equity Strategy
- Date posted:
- 25 February 2016, 5:03 PM
- Sectors Covered:
- Equity Strategy and Quant
Blackmores (BKL)
NPAT: A$48.3 million; Dividend: 200cps
The result was above expectations.
Morgans comment
A strong result as expected - continuing investor focus on health and wellness will support share price. Risks around regulatory changes in labelling are not yet evident and further investment in capacity is needed to support demand:
Macquarie Atlas Roads (MQA)
EBITDA: A$523.7 million; Dividend: 9cps
The result was in line with expectations.
Morgans comment
FY15 result looks in line with our forecasts. Good growth at APRR and cashflows into MQA as expected to fund the distribution. We continue to be bullish on the distribution growth outlook.
Acrux (ACR)
NPAT: A$9.7 million; Dividend: 0cps
The result was above expectations.
Morgans comment
Market should be happy with this result - expect costs to be higher in 2H and seasonally weaker period. Stock is relatively illiquid might be one for the nimble traders only.
Seek (SEK)
NPAT: A$102.4 million; Dividend: 21cps
The result was in line with expectations.
Morgans comment
We see 2016 as the year of maximum re-investment pain and believe that there are good grounds to believe that double-digit EPS growth will resume from FY17 onwards.
Sandfire Resources (SFR)
NPAT: A$16 million; Dividend: 2cps
The result was below expectations.
Morgans comment
Our overall thesis is unchanged. SFR is enjoying steady cash generation from a stable production base with the falling AUD providing an important buffer against weaker copper pricing. However the market is again pricing in significant value for SFR's growth options (mainly Monty) before their viability is known. We think its prudent to wait to evaluate the Monty Resource and LOM update before paying for in on market beforehand.
Ramsay Health Care (RHC)
NPAT: A$237.4 million; Dividend: 47cps
The result was in line with expectations.
Morgans comment
In line with net profit estimates, but revs and operating income lines a tad below expectations; regardless, all divisions are growing robustly; comforting to see “strong admissions growth” in Oz and margin gains, showing little impact from ‘noise’ around gov reviews; outlook was upgrade by 3%.
South32 (S32)
NPAT: A$26 million; Dividend: 0cps
The result was above expectations.
Morgans comment
We like S32, with its strong balance sheet and good cash flow, and it is certainly undervalued versus our DCF. We believe it offers great value upside in a recovering market scenario... the problem is the cycle is not quite there yet.
Kina (KSL)
NPAT: PNG$47.5 million; Dividend: 3.4cps
The result was in line with expectations.
Morgans comment
The result was impacted by lower than prospectus net interest income due to loan growth being impacted by the Maybank integration and a slightly lower NIM than planned. However it was offset by higher FX income and a lower bad debt charge than prospectus. Guidance is broad pointing to profitable growth into FY16 and similar NIM and cost to income ratios as FY15.
ERM Power (EPW)
NPAT: A$9.4 million; Dividend: 6cps
The result was below expectations.
Morgans comment
1H16 earnings below forecast (mostly due to start-up USA business), but DPS sustained - FY16 EBITDA guidance downgraded ~5% at the mid-point.
Select Harvest (SHV)
NPAT: A$21.1 million; Dividend: 21cps
The result was below expectations.
Morgans comment
NPAT was below expectations, however CF and dividend were well ahead; both FY16 yield and price forecast is revised; expect consensus downgrades.
Simonds Group (SIO)
NPAT: A$4.4 million; Dividend: 0cps
The result was in line with expectations.
Morgans comment
Top line numbers look solid across the group. Given the earnings uncertainty the 1H16 has created (and no guidance or dividend from SIO to provide some confidence) - we need to have a closer look before taking a more positive stance.
Speedcast (SDA)
NPAT: A$8.7 million; Dividend: 6.7cps
The result was in line with expectations.
Morgans comment
SDA did not provide any specific guidance but commented that they "expected to sustain double-digit service revenue and EBITDA growth as a result of revenue synergies and continued operational leverage.” FY16 will also benefit from cycling acquisitions (12 month contributions) plus a number of newly announced acquisitions.
More information
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