Iluka Resources Ltd

ILU Details
·         Positive March quarter performance: Iluka Resources Ltd (ASX: ILU) stock rallied over 3.7% on April 24, 2017 following a total rise of over 15.2% in the last five days (as at April 21, 2017) with improving sentiments and commodity price movements. For March Quarter, the group’s revenue enhanced 118.5% against same period last year driven by better sales volumes which comprise Sierra Rutile sales volumes. Sales volumes surged 131.5% year on year (yoy) during the period. As a result, the group decreased their net debt to $403 million as at 31 March 2017 as compared to $506 million as at 31 December 2017.Overall Z/R/SR production surged 52.9% to 232.2 thousand tonnes against the March quarter 2016, driven by Sierra Rutile product and rising zircon production. Rutile production surged 112.5% with the inclusion of 35.7 thousand tonnes from Sierra Rutile, but even without Sierra Rutile contribution, rutile production rose 26.9%. Meanwhile, Northcape Capital PTY LTD reduced its shareholding to 6.11% from 7.26%,

·         Recommendation: ILU stock is trading at higher levels, and we give a “Hold” recommendation on the stock at the current price of $ 8.87 

March Quarter Production (Source: Company Reports) 

Bellamy's Australia Ltd

BAL Details
·         Management Changes: Bellamy's Australia Ltd (ASX: BAL) stock recovered about 3.8% on April 24, 2017 at the back of improving sentiments. BAL has recently appointed John Ho as a non-executive director while acting CEO Andrew Cohen and acting CFO Nigel Underwood have been confirmed as permanent executives. A new substantial shareholder, Hong Kong-based Janchor Partners, has also been introduced to the board with a 7% interest in the company. The group is resetting its strategy and had also announced that the group’s ‘Australian label’ product represents 86% of their sales as of first half of 2017 while the group reported that their CFDA registration would not hurt their Australian label product which is now being sold via Australian retail, the Daigou and China Cross-border Ecommerce. Moreover, the group is confident that it would achieve CFDA registration as well as continue to review multiple alternative and accredited canning facilities. The group is also working with their China Offline Distributor SIIC to preserve continuity of their supply of ‘Chinese label’ (or PRC) products during the registration process.

·         Recommendation:The heavy fall of the BAL stock has placed them at reasonable levels. Given some level of uncertainty still prevailing, we maintain a “Hold” on the stock at the current price of $ 4.64

Australian Agricultural Company Ltd

AAC Details
·         Rising property value boosted the stock sentiment: Australian Agricultural Company Ltd (ASX: AAC) stock rose over 3% on April 24, 2017 driven by their rising portfolio value. The group witnessed a $44.3 million rise in the value of the company’s property portfolio as at 31 March 2017 from $615.1m to $659.4m, as per CBRE Valuations Pty Ltd. This shows better sale prices for recent property sales in Northern Australia and rising activity. On the other hand, Henry and Bernadette Burke, would be leaving the business by late May 2017.

·         Recommendation: AAC stock rallied over 7.1% in the last four weeks (as of April 21, 2017) and is still trading at a reasonable level.We give a “Buy” recommendation on the stock at the current price of $ 1.70

DroneShield Ltd

DRO Details
·         G7 Military order lifted the stock: DroneShield Ltd (ASX: DRO) stock enhanced about 1.5% on April 24, 2017 as their DroneGun tactical drone jammer product is sold to the military of a G7 country through their distributor. DroneGun would be deployed for testing in the Middle East. Although the revenue from the sale of one unit is immaterial, the sale is a first of a kind to the military which is a key milestone. This milestone is significant as it indicates the rising need for drone security systems globally as well as the increased acceptance of DroneShield as a leader in the industry, capable of delivering an immediate working and cost-effective solution to its end users, without the need for further development.

·         Recommendation: DRO stock surged over 78.95% in the last six months (as of April 21, 2017) and the bullish sentiment on the stock is expected to continue in the coming months looking at the geopolitical scenario. We give a “Speculative Buy” recommendation on the stock at the current price of $ 0.34

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