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

Bell Potter


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 Rex intends to retire this year and the Board has a comprehensive CEO succession process underway | Net operating cash flow up 26% to $457.2m | Outlook: “Based on strength of the first half results and the continuation of robust growth across all our operations and barring unforeseen circumstances, Ramsay upgrades guidance of Core NPAT and Core EPS growth to 12% to 14% for full FY 2017 (previously 10% to 12%).


Qantas Airways (QAN):   The Qantas Transformation Program delivered $212 million of benefits over the first half of 2016/17 bringing the total benefits delivered under the Qantas Transformation Program to $1.9 billion. The Group continues to target $2.1 billion of benefits delivered by the end of financial year 2016/17, up from the $2 billion originally announced. | Segment EBIT; QANTAS Domestic down 4% $371m; QANTAS International down 23% $208m; Jetstar up 5% $275m; Qantas Loyalty up 3% $181m; Qantas Freight down 29% to $27m. | Net operating cash flow down 15% to $1173m ree cash flow $288m). | Capital management of $219m, including interim dividends of 7cps ($128m) and the completion of the on-market buy-back announced in August 2016 ($91 million remaining). | Outlook: Underlying fuel cost is expected to be no more than $3.2 billion, D&A is expected to be approximately $170 million higher than FY16 Transformation benefits (across cost, fuel efficiency and revenue) are expected to be approximately $450 million.Net CAPEX $1.5bn. Non-cancellable aircraft operating lease rentals are expected to be approximately $100 million lower than in financial year 2016.


Westfield Corp (WFD):  Specialty sales up 2.2% to $726m. Flagship portfolio (82% of Assets under Management) specialty sales up 3.5% of $898 and Regional portfolio specialty sales of $457 psf, up 0.5%. | Comparable net operating income growth was 3.2% with Flagship portfolio up 4.0% and Regional up 0.6%. | 94.9% occupancy (down 100bps) (Flagship 96%, Regional 94.8%). | Outlook: WFD expects to achieve FFO for the 2017 year of between 33.8 and 34.0 cents per security, representing pro-forma growth of between 3% and 3.5% from 2016. The distribution forecast for the 2017 year is 25.5 cents per security.



Bell Potter Securities is a leading Australian stockbroking, investment and financial advisory firm that provides a comprehensive offering of financial services to a diversified client base that includes individuals, institutions and corporations.

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