Longform

Number of smaller IPOs surge despite decreasing capital raising levels

OnMarket

Initial Public Offerings (IPOs) continued to post outstanding returns in the second quarter of 2017, with an average gain on the 33 companies which listed on the Australian Securities Exchange (ASX) of 11.4%, an impressive outperformance of the S&P/ASX 200, which fell 2.4% over the same period. Show More

The Only Australian Value REIT

Nicholas Sproats
Nicholas Sproats Fortius Funds Management

Heather Ridout (Australian Super Chairperson) has been banging the table on gender diversity at the board level of Australian companies, and right she should. Only 22% of Australia’s top 200 listed companies have women on their board – not a majority, not the Chair, just at least one – and... Show More

Don’t get hung up on property 'headwinds'

Nicholas Sproats
Nicholas Sproats Fortius Funds Management

We constantly hear about the headwinds facing retail property. The headwinds, the headwinds, oh the headwinds – it’s like Tim Bailey got caught on loop. Lets face it, there aren’t many businesses that aren’t operating in headwinds - it’s called competition, it’s called capitalism – and for all those pedalling... Show More

Spotless Group Holdings, Scottish Pacific and Harvey Norman - First Impressions from reporting

Bell Potter
Bell Potter Stockbroker

Spotless Group Holdings (SPO): Reported net loss $358m- includes $391.1m of exceptional items (after tax) primarily relating to the contract portfolio restructure | Contract renewal rates improved to continue to hold at 95% by number and 72% by annual value. New contract wins also increased during the period to... Show More

QBE Insurance, Lendlease and Spark Infrastructure - First Impressions from reporting

Bell Potter
Bell Potter Stockbroker

QBE Insurance (QBE): Better than expected result – GWP ahead (NEP impacted by FX), COR ahead and margin ahead – and underwriting and pricing strategies working. North America on the mend, further improvements likely in 2017 and 2018 (go Trump). Investment returns as expected, capital strong – thus 10%... Show More

OZ Minerals and Asaleo Care - First Impressions from reporting

Bell Potter
Bell Potter Stockbroker

OZ Minerals (OZL): Operating cash flow $324.1m was a reduction of $105.7m compared to pcp as a result of lower concentration sales partially offset by cost reduction program. | Outlook: Copper production*105,000 to 115,000 tonnes Gold production*115,000 to 125,000 ounces Allin sustaining cost US 120c -US 130c/lb All in sustaining... Show More

MYOB Group, Iluka Resources, Crown Resorts and Flight Centre - First Impressions from Reporting

Bell Potter
Bell Potter Stockbroker

MYOB Group (MYO): Recurring revenue represented 95.6% as compared to 95.1% pcp | Paying SME subscribers up 7% to 585k and online subscribers up 47% to 249k | 93% cash conversion in 2H16 as compared to 95% in 1H16, Net debt lowered by $4m to representing gearing 2.2x Net... Show More

Ramsay Healthcare, Qantas Airways and Westfield Corp - First Impressions from reporting

Bell Potter
Bell Potter Stockbroker

Ramsay Healthcare (RHC): UK EBITDAR up 2.4% to £51.7m, Australian up 14.1% to $444.3m and France up 6.5% to €206.1m | Ramsay Health Care opened $142M of brownfield developments in the six months to December 2016 including 166 beds, 6 operating theatres and 2 emergency centres | CEO Chris... Show More

Coca Cola Amatil, Stockland, QUBE Holdings, Healthscope and Fairfax Media - First Impressions from Reporting.

Bell Potter
Bell Potter Stockbroker

Coca Cola Amatil (CCL): Divisional highlights:Australia Beverage volumes down 2.1%. EBIT down 1.8% to $455.3m, EBIT margin up 0.3ppts to 17.1%; NZ & Fiji volumes up 9.6%. EBIT up 6.9% to $105.6, EBIT margin down 02ppts to 19.1%; Indonesia and PNG volumes up 6.2%. EBIT up 42.9% to $69.6m, EBIT... Show More

Insurance Australia Group, APA Group, Woodside Petroleum, Woolworths - First Impressions from Reporting.

Bell Potter
Bell Potter Stockbroker

Insurance Australia Group (IAG): Solid result that was also boosted by higher reserve releases – the only “slight” negative in the result. Other than that, top line growth was strong – thus the improved guidance for the year – while margin guidance was maintained although boosted again by higher planned... Show More

SEEK - First Impressions from Reporting

Bell Potter
Bell Potter Stockbroker

SEEK (SEK): Divisional Performance: ANZ Employment revenue up 13% to $171.3m and EBITDA up 10% to $97.2m; EBITDA margin 57% as compared to 58% in pcp; Seek International revenue up 4% to $308.5m and EBITDA down 3% to $97.5m, EBITDA margin 35%; Zhaopin revenue growth 23% EBITDA growth 20% and... Show More

Caltex Australia, Oil Search, Scentre Group and FlexiGroup - First Impressions from reporting

Bell Potter
Bell Potter Stockbroker

Caltex Australia (CTX): Lytton EBIT of A$205m as compared to $406m pcp-slightly ahead of pre-guidance and our estimate of A$200m) Full year sales from production increased 14% to 6.2 BL | S&M EBIT up 5.6% to A$709m ahead of guidance (A$700m)- Excluding unfavourable externalities of $29 million, Supply and Marketing... Show More

Brambles, Worleyparsons, GWA Group - First Impressions from reporting

Bell Potter
Bell Potter Stockbroker

Brambles (BXB): Divisional EBIT: Pallets Americas down 9% to US$186.6m; Pallets EMEA: Down 2% to US$171m; Pallets Asia Pacific: Up 9% to US$35.1m; Containers: Up 47% to US$20.3m; RPCs: Up 31% to US$76.5m. | Net operating cash flow down 8.4% to US$582.3m. | Outlook: New guidance sees constant FX sales... Show More

Whitehaven Coal and DUET Group - First Impressions from reporting

Bell Potter
Bell Potter Stockbroker

Whitehaven Coal: Total Coal sales up 7% to 7796 kt | Unit costs fell by $2/t to $56/t (driven by a range of savings associated with scale increases, productivity improvements and improved procurement practices | Net debt was lower at $628m (pcp 924.9 million) with gearing 17% | Operating cash... Show More

ASX, Link Administration, MediBank and Santos - First Impressions from reporting

Bell Potter
Bell Potter Stockbroker

ASX: Higher levels of cash market and derivatives trading activity (stimulated in part by market reaction to the US election.) The dip in revenue from Listings business reflects the comparison with last year’s strong level of secondary capital raisings. (While the total amount of capital raised was down for the... Show More

South 32, Telstra, Tatts Group and Star Entertainment Group - First Impressions from reporting

Bell Potter
Bell Potter Stockbroker

South 32: Reported Net profit US$620m as compared to net loss US$1.75bn in pcp (which included impairment charges US$1.7bn) | Underlying EBITDA up 96% to US$1064m, EBITDA margin 36.7%. (Higher prices for the majority commodities offset lower volumes, giving rise to an increase in sales revenue of US$240m | Operating... Show More

Goodman Group, Mirvac, Sydney Airport, Origin Energy - First Impressions from reporting

Bell Potter
Bell Potter Stockbroker

Goodman Group: Net tangible assets (NTA) per security increased 3% to $4.24 (current price $7.22) | Total assets under management of $34.8 b, external assets under management increased to $30.1bn | Development WIP at $3.5 billion across 81 projects in 14 countries | Property fundamentals remain robust : Occupancy maintained... Show More

Challenger: Good story but fully valued

Morgans Financial Limited

We like the CGF story in the longer term and think management has done an excellent job opening up growth opportunities for the company. We lift FY17/FY18F EPS by ~1-2%. Changes to our numbers reflect a slight increase in net book growth assumptions which have offset lower COE margin forecasts.... Show More

Primary, Boral, Inghams and Sonic - First impressions from reporting

Bell Potter
Bell Potter Stockbroker

Primary Healthcare’s Net operating cash flow was down 39.3% to $90.4m. Outlook: “As a result of HY 2017 trading, the subdued environment reflected in the Medicare data, and ongoing uncertainty over Government policy and regulations, Primary now expects underlying NPAT for FY 2017 to be in the range of $92... Show More