BWX Limited

Steller Performance in FY18:BWX Limited (ASX: BWX) is an Australian branded product company operating in the body, hair and skin care industry. It posted stellar FY18 results with net revenue coming in 105% higher at $ 148.7 Mn compared to the prior corresponding period (PCP). It was mainly driven by Sukin organic growth of 6.1% through expansion into domestic grocery channel and ongoing international expansion and $79 Mn sales contribution from acquisitions with significant upside potential. Underlying EBITDA grew by 52% to $ 40.3 million in FY18 from $26.4 million in the previous year. Underlying Net Profit after Tax (NPAT) stood $24.2 Mn in FY18, exhibiting significant growth of 38 percent on a Y-o-Y basis. At 30 June 2018, the Group had a net cash of $19.89 Mn with a debt-to-equity ratio of 0.19x. Further, the Board of Directors declared a fully franked dividend of 4.2 cents per share (cps) and it was paid on October 12, 2018 to its shareholders. This summarized a total dividend payment of 7.45 cents per share for the full year, representing an 11% rise over the previous year.


FY18 Financial Metrics (Source: Company Reports)

Meanwhile, the share price has fallen 34.62 % in the past three months as at October 19, 2018 and traded close to lower level. Based on foregoing, we maintain our “Hold” recommendation on the stock at the current market price of $3.540.
 

Domino's Pizza Enterprises Limited

Trading at Higher level: Domino's Pizza Enterprises Limited (ASX: DMP) is currently indicating higher high formation on price charts along with today's closing signaling the formation of three white crow pattern which will give a clear signal for a bull run that might be seen in medium term. During the month of August, the scrip made a high of $57.8 and formed an inverted hammer pattern with a long wick showing rejection on the upside. But the scrip traded well above mean deviation of Bollinger bands and showed a good recovery and is trading currently well above the mean point of Bollinger bands.

Looking on major indicators like RSI at 59.45 in conjunction with signal line indicates that the crossover is likely and any positive crossover will take bulls in strength with buyers taking control over sellers. MACD already in positive territory indicates a decent move. With higher high on price charts and all major indicators supporting an overall bull move for the scrip in near term, makes DMP an interesting watch. However, the share has risen 8.94% in the past three months as at October 19, 2018 and traded close to higher level. Hence, we maintain our “Expensive” recommendation on the stock at the current market price of $55.270.
 

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