Greencross Ltd

Ongoing execution of integrated petcare strategy: Greencross Ltd.’s (ASX: GXL) stock surged 2.5% on October 25, 2017 as the group reinforced its leading position in the pet care market during its Annual General Meeting. GXL has continued to expand their network footprint by 11% in FY2017, driven by organic growth. They executed their integrated petcare strategy in FY17 while extended their position as Australasia’s leading specialist pet care company. The group expanded the in-store service offering to have a one-stop pet shop. With about 18 stores, 25 clinics (including 20 in-store clinics) and 13 grooming salons being added in FY2017 and 5 stores, 4 in-store clinics and 4 grooming salons opened in year to date of FY18, the group has been progressing well on its expansion strategy. The in-store clinics are performing well, and the group expects to add another 20 this year. The group would continue to leverage the relaunch of the Loyalty Program to enhance customer engagement.


Expanding network (Source: Company reports)
 
GXL stock rallied over 10.4% in the last four weeks (as of October 24, 2017) and we believe this momentum will continue. We maintain a “Buy” recommendation on the stock at the current price of $ 5.73

National Veterinary Care Ltd

Robust performance:National Veterinary Care Ltd (ASX: NVL), the second largest listed veterinary care provider, recently acquired seven clinics to expand the group’s penetration and had also settled two veterinary clinics in Queensland. These seven clinics are forecasted to deliver an annual revenue of over $10.3 million and aggregate annual EBIT of over $2.4 million. This acquisition would lead the total number of integrated veterinary services businesses to 60. On the other hand, NVL stock rallied over 25.7% in this year to date (as of October 24, 2017) and is trading at higher levels at the back robust second year of reporting performance in 2017 (entailing 51% rise in revenue and Net profit after tax growth if 53%). We give an “Expensive” recommendation on the stock at the current price of $ 2.69

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