Stocks’ Details

Collins Foods Ltd

Acquisition of 14 KFC restaurants:Collins Foods Ltd (ASX: CKF) is making many efforts in different directions to reflect an improved performance. In December, the group appointed Kevin Perkins as Non-Executive Director. Lately, CKF announced that its wholly owned subsidiary, Collins Restaurants South Pty Ltd has acquired 14 KFC restaurants located in Tasmania from a subsidiary of Yum! Brands Inc. Further, four restaurants of the original acquisition are yet to complete. Moreover, in the first half of FY 18, CKF has reported 14% growth in the revenue to $322.1 million, underlying EBITDA growth of 5.7% to $40.8 million and underlying NPAT is up 3.7% to $17.4 million. CKF has launched the first Taco Bell Restaurant in Queensland and its early trading is above expectations. Meanwhile, CKF stock has fallen 8.51% in three months as on February 09, 2018 and this opens up an interesting investment opportunity. Based on the potential at the back of new store openings, growing Australian business, better performance from Sizzler Asia, and dividend scenario, we give a “Buy” recommendation on the stock at the current price of $5.29
 

Washington H. Soul Pattinson and Co. Ltd

Acorn Capital Investment Fund Limited to purchase the Portfolio from SOL:Washington H. Soul Pattinson and Co. Ltd (ASX: SOL) has announced that Acorn Capital Investment Fund Limited (ACQ) will purchase a portfolio of seven assets consisting of six unlisted assets and one that is ASX-listed (the Portfolio) from SOL for approximately $7.61 million. Additionally, during FY 17, SOL and Brickworks had successfully defended the litigation brought by funds managed by Perpetual Investment Management Limited. The Federal Court has dismissed all allegations made by Perpetual and ordered them to pay costs to both SOL and Brickworks. Meanwhile, SOL stock has fallen 4.83% in three months as on February 09, 2018 and is trading at a decent level. While slightly “Expensive” at the current price of $16.59, the stock is worth a watch.
 

Global Construction Services Limited

Gallery Facades awarded works on 280 George St, Sydney: Supplier of integrated on-site products and services, Global Construction Services Limited (ASX: GCS) has announced that the group’s 51% acquired division Gallery Facades has signed the formal contract with the TOGA group for the value of approximately $10 million. The contract is the second Façade supply and installation contract, which is for the supply and the installation of façade to the 27-story luxury Adina Apartment Hotel located at 280 George Street, Sydney. This is the first time the company is working with TOGA group. GCS is expected to benefit from the heaps of industry work and aims to have double digit earnings growth in FY18. Meanwhile, GCS stock has fallen 3.66% in three months as on February 09, 2018 and looks to be a “Speculative Buy” at the current price of $0.79
 

FY17 Performance (Source: Company Reports)

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