Transurban Group
A Look at 1H FY 2019 Results: Transurban Group (ASX: TCL) had recently published the results for 1H FY 2019. The company’s top management had highlighted the focus towards delivering the committed pipeline of the projects. The highlights of the 1H FY 2019 results include the raising of $4.8 billion of new equity so that the acquisition of WestConnex can be supported. The company had posted statutory profit amounting to $145 million and the highlights also include the distribution amounting to 29 cents per share for 1H FY 2019.
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Statutory Results (Source: Company Reports)
With respect to Melbourne, the company had stated that, in 1H FY 2019, the toll revenue has witnessed the growth of 5.6% on the back of ADT growth of 4.6%. The company’s current ratio happens to be in line with the industry median. At the end of December 2018, the company’s current ratio stood at 0.66x.
What to Expect from TCL Moving Forward: Transurban Group had reaffirmed the distribution guidance for FY 2019 at 59 cps. The company had stated that TCL’s employees have been working to deliver the nine committed projects safely as well as successfully in the time frame of next five years.
The management of the company had stated that they would also be focusing towards the enhancement of the customer as well as community offerings.
Stock Analysis: On the daily chart of TCL, Exponential Moving Average or EMA has been applied and default values were used for the purposes. After careful observation, it was noted that the company’s stock had crossed the EMA and had trended in upward direction after crossover which reflects bullishness. Therefore, there are expectations that the company’s stock price might witness a rise moving forward.
Based on the backdrop of above-mentioned factors, we maintain our “Buy” rating at the current market price of A$12.260 per share.
Reliance Worldwide Corporation Limited
RWC to release half-year results on February 25, 2019: Reliance Worldwide Corporation Limited (ASX: RWC) had stated that they would be releasing their half-year results for the period ended December 31, 2018 on February 25, 2019. With respect to FY 2018 results, the company had stated that double digit growth in sales as well as EBITDA was helped by core SharkBite Push-to-Connect (or PTC) fittings and accessories, good growth throughout EMEA and APAC as well as first full year inclusion of Holdrite.
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FY 2018 Financial Highlights (Source: Company Reports)
In FY 2018, the company posted net sales amounting to $769.4 million reflecting a YoY rise of 28% while RWC’s reported EBITDA amounted to $135.4 million implying YoY rise of 12%.
What to Expect From RWC: Reliance Worldwide Corporation is expected to post EBITDA between $280 million-$290 million in FY 2019. However, the company had also noted that results might get negatively impacted by between 1.5% and 3% if the modest freeze event is not experienced in the USA. The acquisition of John Guest happens to perform well as well as in line with the expectations from due diligence processes.
Stock Analysis: On the daily chart of Reliance Worldwide Corporation, Exponential Moving Average or EMA has been used and default values were used for the purposes. After observation, it was noticed that stock price had crossed the EMA and had trended in the upward direction after crossover which reflects the bullishness. Hence, there are expectations that the company’s stock might witness a rise moving forward. Also, the company’s stock price has delivered the return of 10.31% in the span of previous one month.
On the backdrop of the above-mentioned factors, we maintain “Buy” rating on the company’s stock at the current market price of A$4.950 per share.
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