Stocks’ Details

Jumbo Interactive Limited

Jumbo stock included in S&P/ASX 300 Index: Jumbo Interactive Limited (ASX: JIN) has, through a release on ASX, stated that on account of the quarterly rebalance of the S&P/ASX Indices, the company shall be included in the S&P/ASX 300 Index and would be effective at the open of trading on March 18, 2019.

For the HY ended 31 December 2018, the company reported its revenue of $30.5 million which reflects a rise of 57.9% on PCP. The net profit before tax (NPBT) was up by 136.2% to come in at $18.2 million. The increase was largely due to the improved customer engagement together with higher jackpot activity which has led to increased customer activity (both new and existing customers) and customer spend.

Guidance for FY19: As regards the outlook, based on 1HFY19 performance, the company has revised its guidance for FY19 and expects TTV (total transaction value) growth of approximately 62%, revenue growth of approximately 53% and EBIT growth of approximately 107% as compared to the prior year.In the second half of the financial year, the company is expected to be helped from a large number of new customers acquired and from the active customers engaged through Jumbo Lotto platform.


FY2019 Guidance (Source: Company Reports)

Based on the decent performance in 1HFY19, the Board of Directors declared fully franked interim dividend of 15.0 cents per share which will be paid on 22 March 2019 & had a record date of 8 March 2019. Meanwhile, the share price has risen 73.02% in the past six months and, in the past one month, it rose 30.39%. As a result, the company’s stock has been pushed closer to a 52-week higher level. Therefore, we can assume that the stock price has discounted all the key growth catalysts in the current juncture. Hence, we uphold our “Expensive” recommendation on the stock at the current price of $11.800 per share.
 

NONI B Limited

Off-market buyback:NONI B Limited (ASX: NBL) announced an off-market buyback of ordinary shares numbering 96,994,779 at a price of $3.42 per share. The Shareholder approval is not required for the buyback. The reason for this buyback is the enforcement of “Employee Share Scheme Buy-back”.On the 21st February 2019, the Board of Directors declared an interim dividend of 9.0 cents per share with a record date of 12 March 2019 and payable to shareholders on 22 March 2019.


NBL’s Financial Highlights (Source: Company Reports)

The company has, for the half-year ended 30 December 2018, reported total Group revenue of $464.4 Mn reflecting a rise of 140.4% from 1H 2018. This rise was on the back of contribution received from the acquisition of five brands from Specialty Fashion Group on 2 July 2018.

What to Expect From NBL:  As regards the outlook for FY2019, the Group is on track to deliver the previously announced additional cost synergies of $20m by 30 June 2019, over the achieved $30m (on an annual basis). Above this, the management anticipates further efficiencies and margin enhancements to add the FY20 earnings. The key focus and strategies for the group include investing in its online presence & restocking the acquired brands to optimum levels.
Meanwhile, the stock price has risen by 18.89% in the past one month and is trading slightly towards the higher levels.Hence, since the stock is trading slightly towards the 52-week higher levels, we assume that the stock has already priced in all the positive catalysts. Therefore, we have a watch stance on the stock at the current market price of $3.160 per share (down 1.558% on 12 March 2019) and we further advise market participants to look for more growth catalysts while a price correction may offer a better entry opportunity.
 

Accent Group Limited

 
On market change of director’s interest: Accent Group Limited (ASX: AX1) recently stated that Ms. Donna Player has, in an on-market trade, indirectly acquired fully paid ordinary shares numbering 50,000.These were acquired in 2 tranches i.e., 13,000 @ $1.528 per share and 37,000 @ $1.537 per share. Thus, she now holds a total of 50,000 shares in the company.

 

AX1 Financial Highlights (Source: Company Reports)
 
For the half year ended 30 December 2018, the company reported revenue from ordinary activities of $399.94 Mn reflecting the rise of 10.5% on the pcp. The company owned retail sales witnessed the robust growth to $331.1 million i.e. a rise of 12.2% on the prior period. The business has been benefitted from global momentum and robust local sales with respect to its vertical distributed brands which includes Skechers, Vans and Dr Martens driving both sales growth in the standalone stores and margin growth in Hype and Platypus.
 
What to Expect from AX1: Going forth, the company expects to deliver at least 10% EBITDA growth in H2 FY19 mainly through more new stores added in H1 than originally expected & strong new store performance. This guidance will, moreover, get support from the continued strong digital growth and continued margin improvement through vertical brands penetration and new exclusive brands.
 
The company is trading at an attractive TTM P/E multiple of around 15.730x. Also, the company’s dividend yield stands at 5.54% which can be considered at the decent levels.  If we look at the stock’s YTD performance, the stock has risen by 25.21%.
 
Therefore, considering the returns on the YTD basis, decent annual dividend yield coupled with the expectations of EBITDA growth moving forward, we maintain our “Hold” rating on the stock at the current market price of A$1.505 per share as it is trading slightly towards higher levels.
 

Stock Price Comparative Chart (Source: Thomson Reuters)    

Disclaimer
 
The advice given by Kalkine Pty Ltd and provided on this website is general information only and it does not take into account your investment objectives, financial situation or needs. You should therefore consider whether the advice is appropriate to your investment objectives, financial situation and needs before acting upon it. You should seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice) as necessary before acting on any advice. Not all investments are appropriate for all people. Kalkine.com.au and associated pages are published by Kalkine Pty Ltd ABN 34 154 808 312 (Australian Financial Services License Number 425376). The information on this website has been prepared from a wide variety of sources, which Kalkine Pty Ltd, to the best of its knowledge and belief, considers accurate. You should make your own enquiries about any investments and we strongly suggest you seek advice before acting upon any recommendation. Kalkine Pty Ltd has made every effort to ensure the reliability of information contained in its newsletters and websites. All information represents our views at the date of publication and may change without notice. To the extent permitted by law, Kalkine Pty Ltd excludes all liability for any loss or damage arising from the use of this website and any information published (including any indirect or consequential loss, any data loss or data corruption). If the law prohibits this exclusion, Kalkine Pty Ltd hereby limits its liability, to the extent permitted by law to the resupply of services. There may be a product disclosure statement or other offer document for the securities and financial products we write about in Kalkine Reports. You should obtain a copy of the product disclosure statement or offer document before making any decision about whether to acquire the security or product. The link to our Terms & Conditions has been provided please go through them and also have a read of the Financial Services Guide. On the date of publishing this report (mentioned on the website), employees and/or associates of Kalkine Pty Ltd do not hold positions in any of the stocks covered on the website. These stocks can change any time and readers of the reports should not consider these stocks as advice or recommendations.