Stocks’ Details
 

Costa Group Holdings Limited (ASX: CGC)

Poised for Growth:Costa Group Holdings Limited (ASX: CGC) is a leading grower, packer and marketer of premium quality fresh fruit and vegetables in Australia. CGC disclosed to the market that director Peter Margin who has an indirect interest in the Company, was initially holding 32,578 shares and now acquired 6,215 more shares. Total shares acquired were of the order of 38,793 for a consideration of $45,151.98. Meanwhile, about 50,000 shares have been disposed by Neil Chatfieldunder on-market trade. On the other hand, the Group delivered decent revenue growth of 9.8% to $489.3 Mn in 1HFY18.The revenue surged up due to robust performance in citrus and tomato categories and no major negative weather impact during the period. Statutory profit was up by $50.3 Mn as compared to 1HFY17 that was majorly driven by the fair value gain of $40.1 million recognised on the deemed disposal and repurchase of the original 49% of interest in African Blue.Further, the management believed that citrus category will continue to make a standout contribution, fuelled by growing export demand across key markets including Japan, USA and China. Overall, the company’s growth program is on track with ongoing execution of the domestic berry program; and securing of additional land for future plantings in China. In view of the performance, CGC enhanced the interim dividend by 25% on 1HFY17. The management of the company also projected NPAT (pre-SAARA and material items) growth of around 25% for the full year, up from previous guidance of at least 20%.

The group will continue to be well positioned to execute further profitable organic growth alongside a disciplined value accretive M&A event.CGC stock has risen 29.0% in past six months but was down by 2.4% in past one month as on April 06, 2018 and is trading at a high level. National Australia Bank Limited and its associated entities became the substantial holder of the Group in March 2018 by holding 16,708,805 shares with 5.226 per cent of the voting power. Further, Bennelong Funds Management Group Pty Limited on behalf of Bennelong Australia Equity Partners Ltd also became the substantial holder of the Group with 9.1086 per cent of the voting power. We maintain our “Hold" recommendation on the stock at the current price of $ 7.320.
 

Robust First Half Year Performance (Source: Company Reports)
 

National Storage REIT (ASX: NSR)

Leader in Self Storage industry: National Storage is a leading player in the Australasia’s Self Storage Industry and the stock has stayed stable even during volatile market conditions. The group’s assets under management have increased from A$480m to A$1.3b with 127 centres under ownership, operation or management across Australia and New Zealand, in a highly fragmented industry. NSR has its key focus on developing multiple revenue streams to maximise returns and is thus focusing on organic growth, platform efficiencies and scalability, high quality acquisitions across Australia and New Zealand and digital transformation, product innovation and online conversions. Basis the efforts, NSR delivered 4.9% growth in underlying earnings per stapled security with 11.4% rise in underlying earnings to $22.4 million during the first half of FY18. Further, the group’s distribution guidance for FY18 has been 9.6 – 10.0 Cents per stapled security. The group’s dividends have increased steadily from 2014. Given the scenario and the defensive nature of the stock (up 5.6% in last six months), we maintain a “Hold” on NSR at the current price of $ 1.605.
 

Growth in Earnings per Security (Source: Company Reports)

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