OncoSil Medical Ltd

OSL Details
 
Rise in Revenues: OncoSil Medical Ltd (ASX: OSL) had registered a net loss post-tax of $5,149,905, reflecting a rise of 13.6% on a YoY basis for the HY ended 31 December 2018. This rise in the loss was predominantly on account of the increase in the research & development expenditure during the year. The company’s revenue rose to $1,938,449, up 6.3% on YoY basis.This rise was primarily on the back of higher R&D tax incentive and a net gain on foreign exchange translation of $1,815,778 & $16,999, respectively.
 

 
OSL’s Oncosil Commercialisation Steps (Company Reports)
 
What to Expect From OSL: The company had managed to tap the licensing agreements and it had entered into partnerships which would underpin the company’s growth prospects moving forward. Additionally, the company might also benefit from the large global commercial opportunity. The global pharmaceutical players are also getting inclined towards the broader sector.
 
Meanwhile, the stock price has delivered the return of 6.25% over the past one month. The company is expected to be helped by global commercial opportunity which is more than $2 billion. Earlier, the company had also satisfied the regulatory obligations. Considering the above factors, we maintain our “Buy” recommendation on the stock at the current market price of $0.170 per share.


OSL Daily Chart (Source: Thomson Reuters)
 
 

Reliance Worldwide Corporation Ltd

RWC Details
 
Robust EBITDA Margins & Deleveraging Balance Sheet: Reliance Worldwide Corporation Ltd (ASX: RWC) has recently announced that Macquarie Group Limited ceased to be a substantial holder of the company since 1 March 2019. RWC’s net sales for the half year ended 31 December 2018 was $544.2 million, implying a rise of 50.1% on the comparative period. The company’s reported EBITDA for the period was $120.7 million, an increase of 52.3% on the comparative period. These uplifts are indicative of the inclusion of contribution from John Guest for the entire period.


RWC’s FY 2018 Financial Performance (Source: Company reports)

What to Expect From RWC: As per the management, the outlook for second half FY2019 is robust enough. The management anticipates John Guest growth to accelerate in the second half, consistent with the historic pattern. The Lower cost copper (brass bar) to be processed in the second half, is expected to reduce the production costs. Also, there would be an acceleration of John Guest related synergies. On the analysis front, the company has deleveraged its balance sheet, as the debt-equity has been reduced to 0.37x for the 1HY ended 31 December 2018 from the levels of 1.17x reported in the pcp. Moreover, the company delivered robust EBITDA margins of 22.2% in the half-year ended December 2018, depicting the efficiency gained through operational leverage.
 
Meanwhile, the stock price has fallen 12.43% in the last six months and is trading slightly close to a 52-week lower level making a decent buy opportunity.
 
Hence, considering the company’s focus on deleveraging its balance sheet, decent EBITDA margins for HY19 and decent trading juncture, we reiterate our “Buy” recommendation on the stock at the current market price of $4.630 per share.
 

RWC Daily Chart (Source: Thomson Reuters)
 

Westpac Banking Corporation

WBC Details
 
Increasing Productivity Target: Westpac Banking Corporation (ASX: WBC) disclosed that the management has decided that the interim dividend payment shall be made on the 24 June 2019. However, the earlier mentioned date for the payment of the interim dividend was 3 July 2019. The management has further clarified that the 2019 interim dividend record date which was decided to be 17 May 2019 or the New York record date of 16 May 2019, shall remain unchanged. Also, as per the clarification, there is no such change of the date of payment for the final dividend.


WBC’s Total shareholder return and ROE (Source: Company Reports)
 
What to Expect From WBC: As regards the outlook, management has raised the group’s productivity target for the next year to $400 million as the bank continue to simplify its products, digitise its business, and modernise its platforms. The management is committed to devote its funds in technology to improve the quality of services to customers and make it easier for them to do business with the bank. The management has a conviction that its service-led strategy remains the best way to generate shareholders value. The stock price has fallen by 2.56% over the past six months.
 
Hence, considering the decent outlook, strong dividend yield of around 6.97% and robust fundamentals, we maintain our “Buy” recommendation on the stock at the current market price of $27.020 per share (up 0.148% on 11 March 2019).

WBC Daily Chart (Source: Thomson Reuters)
 

Collins Foods Limited

CKF Details

Decent Outlook: Collins Foods Limited (ASX: CKF) has, for the HY ended 14 October 2018, reported revenues of $411.0 million, reflecting a rise of 27.6% compared to the previous corresponding period.

The EBITDA for the half-year came in at $53.6 million and was well-supported by the growth in total revenues combined with disciplined business controls.

CKF’s Financial Highlights (Source: Company Reports)
 
What to Expect From CKF: As regards the priorities for 2H FY19, the KFC Australia will concentrate upon broadening home delivery network along with the expansion of the digital platform. KFC Europe will benefit from the enhanced value proposition and greater brand awareness. The management will focus on elevating operational excellence to enhance the customer experience. Also, the company is committed towards establishing and building the Taco Bell brand in Australia.
 
The stock price has fallen by 4.15% over the past three months and is trading at a reasonable PE level of 18.220x. Also, overall cash and cash equivalents at 14 October 2018 happens to be slightly higher than the prior reporting period thus, providing headroom for growth.

Hence, considering the well-established brands of the company & decent outlook, we maintain our “Buy” recommendation on the stock at the current market price of $6.550 per share (up 1.393% on 11 March 2019).


CKF Daily Chart (Source: Thomson Reuters)
 

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