Temple & Webster Group Ltd

EBITDA Turnaround in 2HFY18: Temple & Webster Group Ltd.’s (ASX: TPW) stock climbed up 8.553 per cent on August 21, 2018 following the release of full-year 2018 results. As per the release, the Group delivered full-year revenue of $72.6 Mn, exhibiting 12.6% growth on a Year-on-Year basis. Importantly, revenue grew by 25% in the second half against the prior corresponding period, which was primarily driven by the implementation of the new strategy. Gross margin expanded by 150 bps to 44.20% in FY18 over the last year. Based on the significant improvements in the Group’s cost base and gross margins, full year EBITDA loss was of $0.6 million, representing 91% improvement on FY17’s EBITDA loss of $6.8 Mn.  Resultantly, loss after income tax benefit came at $0.02 Mn in FY18 from $7.76Mn in FY17, showing about 99.7 per cent improvement on Y-o-Y basis. EBITDA turned around to be positive and recorded $0.3 Mn in 2HFY18. In addition to this, the group enjoys the cash-rich position with zero debt as of 30 June 2018, which will support to execute growth plans without affecting the financial performance of the company.


Revenue and EBITDA Financial Trend (Source: Company Reports)

Hingtai Pty Ltd ATF Hingtai Trust, a substantial holder of the group changed its holding from 7.38% of interest to 5.48% of the voting power. Meanwhile, the share price has risen 52 per cent in the past six months as at August 20, 2018 and traded at a higher level. The stock has a market capitalization of $82.6 Mn and a beta of 2.13 as of August 21, 2018; and it traded at $0.825.

Amcor Limited

Decent FY18 Performance: Amcor Limited’s (ASX: AMC) stock tumbled 3.641 per cent on August 21, 2018 following the release of the full-year result in which Return on funds employed were moderately down by 140 bps to 19 per cent in FY18 against 20.4% in FY17. PBIT margin also contracted to 40 bps and recorded 11.6 per cent in FY18. It was mainly impacted by the rise in input cost and lower volume growth in some of the part of the business. However, total sales grew by 2.4 percent and amounted to US$ 9,319.1 Mn in FY18 over the last year. NPAT stood at US$724.0 Mn in FY18, displaying moderate growth of 3.3 per cent on a Y-o-Y basis. It was mainly supported by a lower effective tax rate of 16.5 per cent in FY18 from 20.3 per cent in FY17. Resultantly, the Board of Directors declared a final dividend of 24 US cents per share (Unfranked), bringing the total dividend for FY18 to 45 US cps, up 5 per cent as compared to the prior year. It will be paid on 16 October 2018 with the record date of 10 September 2018. Meanwhile, the share price has risen 4.08 per cent in the past three months and is trading at a PE level of 20.59x. AMC stock traded at $13.760 as on August 21, 2018.


Key financials and ratios (Source: Company Reports)

Senex Energy Limited

Decent Growth in Topline but Bottom line Disappointed: Senex Energy Limited’s (ASX: SXY) stock tumbled 4.396 per cent on August 21, 2018 following the release of its full-year results wherein Statutory NPAT contracted to 314 per cent to $94 million in FY18 as compared to the prior year. It was mainly impacted by non-cash impairment because of prioritizing focus on Cooper Basin western flank and Surat Basin during the same period. However, total sales revenue grew by 61 percent and amounted to $70.3 Mn in FY18 over the last year. It was mainly driven by the volume and value growth of its product mix during the same period. SXY’s cash balance remained strong at $66.5 million at the end of the year, after investing over $80 million on its suite of core assets during FY18. Based on the FY18 performance, the management stated that FY19 will be a crucial year for the company as the group is rapidly progressing the development of both Project Atlas and the Western Surat Gas Project, focusing on continued operational excellence. Further, the company will inform the market about FY19 guidance in relation to financial close of the ANZ debt facility, expected within four to eight weeks.

Meanwhile, the share price has risen 26.39 per cent in the past six months but was down by 7.14 per cent in the past one week (as at August 20, 2018). In the last 12 months, this stock has reached a high of $0.500 and a low of $0.255. SXY stock traded at $0.435 as on August 21, 2018 with the market capitalization of circa $658.51 Mn.

 
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