Flight Centre Travel Group Ltd (ASX: FLT)

FLT Details

Undertaking a transformation program: Flight Centre witnessed a stock price surge of 10.6% on August 24, 2017 while the travel company announced its full year results with net profit after tax falling 5.6% to $230.77 million from the last year figure of $244.46 million. On the other hand, revenue surged 1.3% to $2.677 billion from FY16 figure of $2.642 billion. FLT majorly got a boost from record sales and accelerated second half (2H) top and bottom-line growth. Despite challenges such as political uncertainty, airfare deflation etc., TTV reached a record $20.1 billion and topped the $19.3 billion sales milestone achieved in FY16 by $804 million or 4%. During the year, FLT also developed a strong omni-channel offering. FLT has now signalled its intention to adopt a transformation program for generating more revenues, cutting costs and getting rid of loss-making businesses. For instance, a return to a 2% net margin - profit before tax (PBT) as a percentage of TTV - within three to five years is now expected base on these initiatives. These are also expected to reap some benefits during FY18. We give a “Hold” at the current price of $ 49.10
 

FY18 Outlook (Source: Company Reports)

South32 Ltd (ASX: S32)

S32 Details

Surge in Profit and Earnings: South32 stock price moved up about 2% on August 24, 2017 as the group charged back with a $US1.2 billion net ($1.5 billion) profit for FY17 against net loss of $US1.6 billion in FY16. This was partly at the back of favourable commodity prices with support from high operating leverage. Group’s revenue surged up 20% to $US6.95 billion. Further, underlying earnings before interest and taxes soared heavily. Moreover, free cash flow more than tripled to $US1.9 billion. The group’s production guidance for FY18 remained unchanged for the majority of operations; however, production at Cannington and South Africa Energy Coal is expected to decline in FY18 as indicated earlier (due to factors such as constrained processing rates etc). The stock is trading at higher levels, while we give a “Hold” recommendation at the current price of $ 2.94
 

Result (Source: Company Reports)

Infigen Energy Ltd (ASX: IFN)

IFN Details

Bumper result:Renewable energy company, Infigen Energy edged a little up with 0.65% rise in stock price as it came out with a seven-fold rise in full-year profit ($32.4 million from last year’s figure of $4.5 million). There was a 14% rise in sales to $196.7 million with 1% rise in production. Further, earnings before interest, tax, depreciation and amortisation was up 25% and underlying EBITDA rose 16%. The group also decreased its debt by 32%. However, the group has signalled that its outlook may be impacted by uncertain wind conditions and fluctuations in power markets. Now onwards, Infigen will provide unaudited monthly generation outcomes to better inform the market on the production outcomes. Further, IFN highlighted that marginal loss factors in respect of Infigen’s wind farms for the period from 1 July 2017 to 30 June 2018 will have a slightly favourable effect on production sold in FY18 compared with FY17. We give a “Buy” recommendation at the current price of $ 0.77

Shaver Shop Group Ltd (ASX: SSG)

SSG Details

Rebound in sales in second half: Shaver Shop’s stock rocketed 6.25% on August 24, 2017 with its full-year consolidated pro-forma NPAT up 20.7% to $9 million. SSG met or outperformed its Prospectus FY17 forecast. There was about 34% rise in revenue to $142.57 million from $106.71 million at the back of like for like corporate store sales growth of 6.2%, strong sales from multi-unit reseller channel, new stores and franchise buybacks. Despite a slower than expected Christmas last year, sales rebounded strongly in the second half. SSG now estimates like for like sales growth for the first seven weeks of 2018 close to 4% with increasing momentum since early August and the launch of Father’s Day program, excluding the new multi-unit reseller channel. Looking at the growth prospects, we give a “Speculative Buy” at the current price of $ 0.68

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.