Skydive the Beach Group Ltd

SKB Details

Solid top line growth: Skydive the Beach Group Ltd (ASX: SKB) delivered a solid annual revenue growth of 53.2% for the fiscal year of 2017. As a result, the stock is trading positive and rose over 1.7% on August 25, 2017. The group boosted their cash from operating activities by 139.4%.  Tandem skydive bookings rose 35.97% while Tandem skydives rose 30.6% during the period.



Overall performance metrics (Source: Company reports)
 
The group finished acquisition of Skydive Wanaka (“Wanaka”) and Performance Aviation.  The group also acquired Raging Thunder Adventures (RT) which is their first non-skydiving acquisition. The group is expanding their opportunity via RT which is into white water rafting, hot air ballooning, sea kayaking, canyoning and trips to the Great Barrier Reef. They finished Reef Magic Cruises’ (RMC) acquisition which complements the acquisition of RT, as RMC provides trips to the outer Great Barrier Reef. The group raised $19.6 million and got very good response from investors. SKB generated over 5.4% returns in the last six months (as of August 24, 2017) while we recommend a “Hold” at the current price of $ 0.60



SKB Daily Chart (Source: Thomson Reuters)

Ardent Leisure Group

AAD Details

Strengthening focus on core areas: Ardent Leisure Group (ASX: AAD) had reported that they sold their non-strategic assets to enhance their rate of investment in the high growth Main Event business. They are also confident on their new CEO who comes with a good track record. Further, as per the audited full year results that will be announced by 31 August 2017, AAD expects to report revenue of A$586m for the year ended 30 June 2017, down from A$688m of FY16, at the back of factors including closure of Dreamworld for about 45 days and reduced contribution from Health Clubs business after its sale. Core EBITDA is expected to be A$76m slightly above the prior guidance of A$73-75m. Ardent Leisure has declared a dividend of AUD 0.01 which is payable on August 31, 2017. AAD stock has recovered by 18.2% in the last six months (as at August 24, 2017) post the Dreamworld tragedy and we maintain a “Hold” at the current price of $ 1.92



AAD Daily Chart (Source: Thomson Reuters) 

Crown Resorts Ltd

CWN Details

Ongoing buyback program: Crown Resorts Ltd (ASX: CWN) reported that they have bought a total of 1,272,131 Notes as at 18 August 2017, while 4,047,569 are outstanding Notes which have not been bought back by Crown. The group also updated that last of the 19 current and former employees of the Crown group who were detained in China have now been released. With a lot of weak sentiments at the back of related negative news and softness in fiscal year of 2017 results, the stock has corrected over 9.8% in the last three months (as of August 24, 2017). The group’s Australian resorts normalised revenue fell 12.7% yoy to $2,824.9 million, while Main floor gaming revenue lost 1.4% yoy to $1,656.7 million. But Crown reported that NPAT attributable to the parent rose 96.7% yoy to $1,866.1 million. Moreover, Crown Digital managed to report a 31.9% yoy rise in total revenue to $303.3 million for fiscal year of 2017.
 

Debt Structure (Source: Company Reports)
 
The group’s move to exit Melco resorts has also been a positive one. We give a “Hold” on the stock at the current price of $11.73



CWN Daily Chart (Source: Thomson Reuters) 

Tabcorp Holdings Ltd

TAH Details

Leadership changes: Tabcorp Holdings Ltd (ASX: TAH) appointed Adam Rytenskild to lead their Wagering and Media business as Craig Nugent is set to retire later this year. Mr Rytenskild would also be responsible for the integration of Tatts’ wagering business, post the implementation of the proposed combination of Tabcorp and Tatts. But the Full Federal Court has been said to hear a judicial review of the Tribunal’s decision in late August 2017, post the applications that were lodged separately by the ACCC and CrownBet in mid July 2017. The ACCC has withdrawn its application for a stay or injunction to prevent the completion of the merger until the decision of the Full Federal Court is handed down. TAH stock lost over 10.6% in the last three months (as of August 24, 2017) and given the uncertainty of federal court outcome, we maintain our “Expensive” recommendation on the stock at the current price of $ 4.15



TAH Daily Chart (Source: Thomson Reuters)

Star Entertainment Group Ltd

SGR Details

Performance pressure: Star Entertainment Group Ltd (ASX: SGR) reported a statutory revenue rise of 3.2% yoy to $2,432 million for fiscal year of 2017 but normalized revenue fell 3.9% yoy to $2,337 million. Statutory EBITDA surged 19.9% yoy to $586 million, however normalized EBITDA lost 7.4% yoy to $515 million. Statutory NPAT surged 36% yoy to $264m, but normalized NPAT fell 11.1%. Moreover, the operational expenses rose 1.0%, on the back of rising investments in marketing, loyalty relaunch and wage indexation. Further, FY2018 result is expected to be impacted by several factors including general macro-economic conditions, potential hold and win rate volatility in the private gaming room and International VIP Rebate business, level of debt or provisions, success of the group’s marketing programs and any uncertainty related to the regulatory environment. We maintain our “Expensive” rating on the stock at the current price of $ 5.28, and would review it at a later date.



SGR Daily Chart (Source: Thomson Reuters)

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