First half results were strong and ahead of Morgans’ expectations, with North America standing out. The company continues to retain a dominant position in the North American market with strong growth in platform sales and install gaming operations.
Read MoreGerman competitor Kaufland is looking to start a battle for its share of the Australian households’ wallet and Citi thinks this will act as a catalyst for a resumption of an industry-wide private label price war.
Read MoreRaw material prices have eased. Raw materials account for around 60% of the company’s cost of goods sold. Credit Suisse expects Ansell will achieve only a modest benefit in the second half but forecasts a benefit of around 5% for the first half of FY20.
Read MoreThe company has presented a 10-20 year vision, acknowledging the world is changing and that BHP Group needs to change as well. The company envisages electrification and decarbonisation the two dominant themes evolving over the medium-long-term.
Read MoreSpreads in US spot hot-rolled coil versus scrap continue to weaken, declining to US$309/t, which Credit Suisse notes is below the company’s assumed US$394/t for the June half.
Read MoreThe company has settled or has exchanged contracts on, acquisitions of social infrastructure properties worth $62m. These includes three specialist disability accommodation properties, three early learning centre properties and five early learning centre developments.
Read MoreFY19 net profit was in line with Credit Suisse estimates. Revenue growth occurred across all segments and margins improved in life sciences for the first time in six years.
Read MorePro Medicus is a medical imaging software company, generating sales from its Visage product across North America and Europe as well as Asia-Pacific. The business generates revenue on a ‘pay-per-click’ basis, with guaranteed transaction minimums over contracts of five years or more.
Read MoreDeutsche Bank considers the proposed acquisition of Bemis positive and believes it will generate long-term value. The combined entity will become the global leader in consumer packaging.
Read MoreFirst quarter financials were strong and revealed an earnings (EBITDAX) margin of 62%. Morgans considers the highlight was confirmation that the company and infrastructure provider Enterprise had cleared the bottleneck which constrained production growth.
Read MoreScentre Group has sold a 50% interest in Westfield Burwood for $575m, representing a 4% premium to the December 2018 book value.
Read MoreThe broker suggests reduced US steel tariffs for Canada could result in US steel spread pressure as imports potentially rise, impacting on already materially lower steel prices. US scrap prices may rise on likely increased supply from Turkey and reduced supply from Canada.
Read MoreCredit Suisse expects a -25% fall in Newcastle coal prices to be sustained. In terms of electricity, the broker believes interventionist federal policy will mean a return to oversupply beyond 2022 and, thus, a return to coal cost as the price setter.
Read MoreThe company has won the contract for Koodaideri. Deutsche Bank believes the win was already factored in and, although the contract size is close to forecasts, at $150m over 80 weeks it is likely to be a disappointment to consensus expectations.
Read MoreMorgans observes the investor briefing did not provide any updates on the FY19 outlook, although management is confident the energy solutions business will deliver growth.
Read MoreDeutsche Bank believes the upcoming interim result will reveal that the extraordinary success of the land-based gaming business is being reinvested in the Americas and digital divisions. Nevertheless, the broker expects the result to surprise to the upside.
Read MoreCredit Suisse expects the increased natural hazards allowance and reinsurance cover for FY20 will reduce the downside risk to earnings. This should be a benefit by way of a reduced discount to Insurance Australia Group ((IAG)).
Read MoreGalaxy Resources has made a strategic equity investment of $22.5m in Alliance Mineral ((A40)). This takes its holding to 12%. Alliance Mineral is currently ramping up the Bald Hill lithium project in Western Australia and has guided to production of 240,000t of spodumene concentrate in FY20.
Read MoreGoodman Group has reaffirmed FY19 guidance of growth in operating earnings of 9.5% and distribution growth of 7%. Credit Suisse notes the update highlighted the global demand for logistics space within the proximity of consumers in urban locations.
Read MoreThe company has updated pre-tax profit guidance for the first half, expecting this to be between -7% and -10% lower than the comparable half.
Read MoreThe company has announced the acquisition of four industrial assets located east of the Melbourne CBD. The assets bolster the industrial weighting of the fund and, Morgans observes, provide value-adding opportunities down the track.
Read MoreThe company has announced a significant deterioration in the performance of its generic products since the first half results because of increased competition and US$4m in one-off adverse items. The high-margin specialty brands revenue is also weaker than expected.
Read MoreFortescue’s announced 60c special dividend came as a surprise given typically such announcements are reserved for the result release. The broker calculates 60c represents 80% of second-half earnings using its own (lower) iron ore price forecasts, and the company had flagged a payout ratio of 50-80%.
Read MoreThe company has acquired four industrial assets in Melbourne for $38m, funded by $30m equity raising and debt. Strong rental growth is expected over time.
Read MoreCiti observes Commonwealth Bank has utilised the March quarter to accelerate the recognition of customer remediation across wealth management advice & products and has now dealt with key issues, so a top up in future looks less likely.
Read MoreEarnings lifted in the second half of FY19 and beat Morgans’ forecast. Excluding customer contributions, operating earnings (EBITDA) were flat but still exceeded forecasts by 4%. Distribution guidance of 10.2c per security for FY20 implies 5% growth on a cash yield of 5.6%.
Read MoreThe broker notes China is now taxing plastic resins at 25% but this has not impacted on Amcor’s performance in China given resin prices fell, offsetting the tax. However, Amcor’s PE is now up to 17x which the broker sees as stretched, implying investors are paying for 13 years of earnings.
Read MoreDeutsche Bank observes BHP is currently investing the lowest amount among the four majors and, along with elevated iron ore prices, this is maintaining cash flows at healthy levels.
Read MoreCochlear hosted an investor day on Friday at which no financial updates were provided. The company highlighted the opportunity presented by growth in adult uptake in developed markets along with new initiatives.
Read MoreCredit Suisse believes Senex Energy is well positioned to benefit from higher domestic gas prices, as Project Atlas ramps up over the next two years. Yet, while the company has been touted as a takeover target, no bid has emerged.
Read MoreAdelaide Brighton has downgraded FY profit guidance by -10-15% due to weak demand in residential construction, insufficiently offset by a lower exposure to infrastructure, falling cement/concrete prices in Qld which the broker sees going lower, and competition in South Australia.
Read MoreCredit Suisse observes the first quarter trading update has confirmed previous disclosures regarding margin compression in fuel retailing and poor refiner margins. The broker believes retail fuel margins are likely to remain an uncertain factor for the remainder of the first half.
Read MoreFirst-half results have cleared any doubts about the company’s operating leverage, Citi acknowledges. Strong growth was driven by higher volumes, improved product mix, and better manufacturing. Market conditions are improving and price/cost headwinds fading.
Read MoreFY19 results were in line with Morgan Stanley’s expectations, helped by -$12m in restructuring costs taken below the line. Otherwise, the broker suggests weakness in Australian housing and cost pressures from aluminium are creating headwinds.
Read MoreMacquarie considers impairment levels in the March quarter are unsustainable. The broker continues to expect margin pressure and believes the company needs to lower its margin guidance range by -5-10 basis points in FY20.
Read MoreDeutsche Bank does not believe that there are any major stumbling blocks to the approval of the Vickery expansion project.
Read MoreLTAP has walked away from its proposal to acquire the company for $10.42 a share. Graincorp will now divest the bulk liquid terminals and pursue a de-merger of the malt division.
Read MoreCredit Suisse expects an increase in operating earnings (EBITDA) when third quarter results are released on May 10. This will be driven by the consolidation of Foxtel.
Read MoreMarch quarter was softer for investment bonds sales, down -14%. More positively, funds under management rose 8% and benefited from positive net flows and market movements.
Read MoreThe board has approved the Yaoure development in Côte d’Ivoire. Funding is in place for a US$265m development from credit facilities, warrant proceeds, cash and bullion. Yaoure currently contributes $0.20 to valuation of $0.58.
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