Crown Resorts

Benefitting from the tourism trend: The company is into gaming and entertainment sector; and it recently sued NSW government in relation to the sightlines of Sydney Resorts being blocked by some neighboring developments. Meanwhile, the company’s full year 2018 normalized NPAT to the parent was of the order of $386.8 million, up by 12.7%. On the other hand, normalized EBITDA of $878.3 million is up by 6.1%, due to which the company was able to declare final dividend of 30 cents per share payable on October 5, 2018, making total full-year dividend of 60 cents per share. Total liquidity was $1,889.8 million as at 30 June 2018 and consisted of $176.1 million in committed undrawn bank facilities and $1,713.7 million in available cash. However, the company also had a total debt of $1,492.7 million. The stock was trading at $13.570 with a performance change of 15.67% over the past 12 months. The price to book value ratio for the company is 1.81 which is slightly above the industry median of 1.29. We maintain a “Hold” on the stock while the group benefits from the tourism trend and lower dollar value.
 

Nanosonics

Investments impacting the performance: The company is into infection control and decontamination sector. To increase its marketing and distribution team and expand its infrastructure across the globe, the company focuses on production of systems to be of assistance in above sector. NAN’s trophon adoption is becoming the first choice of customer and growing rapidly around the world. The global installed base increased to 17,740 units up by 25%. Because of the broadening number of selling models with different revenue profiles, the revenue was at $60.7 million in FY18. In fact, a portion of group’s earnings / revenue is in US dollars and thus this makes an impact with respect to benefits from value of the Australian dollar. On the other hand, the growing investments in the trophon2 after the approval, have led to a reduction in the profit before tax of $5.6 million. The cash balance was up by $6.4 million to $69.4 million which supports the growth and expansion of the company. The stock was trading at $3.25 with a performance change of 22.22% over the past 12 months. The price to book value ratio for the company is 10.48 which is above the industry median of 5.27. We currently have a “Hold” on the stock.


Global Market Opportunity (Source: Company Reports)
 

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