Crown Resorts Limited

CWN Details

Redemption of outstanding Subordinated Notes (CWNHA): Crown Resorts Ltd (ASX: CWN) for the half year ended December 2017 reported growth of 5.7% in the normalized topline as compared to the prior corresponding period and moderate rise of 0.6% in the Net Profit attributable to members of the parent. Based on the first-half performance, RoE stood at 4.6% in 1HFY18 while Current ratio and Quick ratio came at 2.36x and 2.34x, respectively during the same period. As a result, the board of director declared an interim dividend of 30 cents per share (60 percent franked) which was paid on April 04, 2018. Recently, it announced that it will redeem all outstanding Subordinated Notes (CWNHA) on their firstcall redemption date of 14 September 2018, in accordance with the terms of Notes and the last date of trading in CWNHA on ASX will be 04 September 2018.


1HFY18 Financial Highlights (Source: Company Reports)

On 14 September 2018, each holder of CWNHA will be paid the face value of $100 with a final interest payment of $1.78 for each CWNHA for the interest period from, and including, 14 June 2018 to, but excluding, 14 September 2018. Meanwhile, the stock climbed up 8.58% in the last one year and was up by 6.22 per cent in the past three months (as at July 19, 2018). Hence, we maintain our “Hold” recommendation on the stock at the current market price of $ 13.650, by looking at ongoing debt reduction strategy to further strengthen the balance sheet and positive tourism sector trends in view of the healthy assets.
 

CWN Daily Chart (Source: Thomson Reuters)
 

Coca-Cola Amatil Limited

CCL Details

Annual General Meeting Result: Coca-Cola Amatil Limited (ASX: CCL) has recently disclosed the result of Annual General meeting wherein the shareholders of the company have approved several resolutions such as adopted FY17 remuneration report, elected Ms. Ilana Atlas, Ms. Julie Coates, Mr. Jorge Garduno as directors, and approved Long-Term Incentive Plan. Moreover, the company disclosed that one of its directors, Catherine Brenner who had an Indirect interest in the company has the total holding of 18,232 ordinary shares out of total outstanding shares. On the financial front, the company delivered an underlying net profit after tax (NPAT) of $416.2 million for FY17, which is marginally increased by 0.4 percent as compared to previous year and broadly in line with guidance provided in April 2017. The company’s statutory net profit after tax (NPAT) grew by 80.9% and amounted to $445.2 Mn in FY17. Based on solid yearly performance, RoE substantially increased from 12.3%. Besides this, Current ratio and Quick ratio stood at 1.52x and 1.16x in FY17 which is broadly in-line with the previous year. The group declared a final dividend of 26.0 cents per share (franked at 70 per cent), representing an underlying payout ratio of 82.4 per cent for the full year. As of now, the group focuses on stabilising the earnings and return to growth in Australia Beverages. Despite intense competition and shifts in channel mix in the first half; revenue, volume and EBIT are expected to further improve in the second half as its initiatives are gaining traction.


Segment EBIT Contribution (Source: Company Reports)

Meanwhile, the shares price rose by 16.97 per cent in the past six months as at July 19, 2018 and is currently trading close to 52-week high. Hence, we maintain our “Hold” recommendation on the stock at the current market price of $ 9.540, considering the aforesaid facts.
 

CCL Daily Chart (Source: Thomson Reuters)
 

AGL Energy Limited

AGL Details

Executed two key sets of agreements in relation to its proposed LNG import: AGL Energy Limited (ASX: AGL) has recently executed its two key sets of agreements in relation to its proposed liquefied natural gas (LNG) import jetty in Victoria in which the first is with pipeline firm i.e., APA Group to develop and construct the Crib Point Pakenham pipeline, and transport gas from the proposed LNG terminal to the domestic market and the second is with the Port of Hastings Development Authority for the long-term use of Crib Point Jetty berth 2 to moor the floating storage and regasification unit (FSRU). Both are subject to a final investment decision to be made on the terminal by FY19. If the company does not proceed with the project, then its total financial exposure because of entering the above agreements would be around $65 million including currently committed capital expenditure to the development of $37 million. However, the group is expected of first gas into domestic market in FY21. We expect that this Crib Point LNG Import Jetty project will provide significant opportunity to deliver new flexible source of gas supply to the southern states of Australia.

On the other hand, its RoE substantially increased from 2.7% to 8.1% in 1HFY18 as compared to the prior corresponding period. At present, the stock currently pays out dividend yield of 4.84 per cent and has market capitalization of circa $14.09 Bn. Moreover, the Vanguard Group, Inc became the substantial holder of the Group by holding 32,944,083 securities and 5.023 per cent of the voting power. Meanwhile, the stock climbed up 3.87 per cent in the past three months as at July 19, 2018 and is currently trading much above its 52-week low level ($20.160). Looking at the current trading level and considering ongoing developments in view of regulatory scenario, we give an “Expensive” recommendation on the stock at the current market price of $ 21.780.
 

AGL Daily Chart (Source: Thomson Reuters)
 

DuluxGroup Limited

DLX Details

Key Management Changes: DuluxGroup Limited (ASX: DLX) has recently announced the retirement of DuluxGroup Chairman Peter Kirby from the Board, effective 30 June 2018. On the financial front, RoE stood at 18.8% in 1HFY18 while current ratio and quick ratio came at 1.52x and 0.88x, respectively during the same period. Overall in 2018, conditions have been said to be positive for DuluxGroup and the strong consumer demand for both retail and trade projects is expected to continue (subject to economic conditions and excluding non-recurring items).


1HFY18 Financial Highlights (Source: Company Reports)
 
The group expects the overall net profit after tax in FY18 to be higher than FY17. Meanwhile, the share price climbed up 11.40 per cent in the last one year and is trading towards the higher level. Hence, we uphold our “Expensive” recommendation on the stock at the current price of $ 7.680 given the housing cycle scenario.
 

DLX Daily Chart (Source: Thomson Reuters)
 

CYBG PLC

CYB Details

Transaction Update on the Revised proposal: CYBG PLC (ASX: CYB) is said to be an option in the banking sector with decent lending criteria. Lately, the group and Virgin Money had announced that they reached an agreement on the terms of a recommended all-shares offer for the entire issued and to be issued share capital of Virgin Money by CYBG. According to the deal, the Offer is intended to be implemented by means of a scheme of arrangement of Virgin Money, on or around 31 July 2018, and it is expected that the scheme document together with the accompanying forms of proxy for Virgin Money Meetings will be convened to approve the Scheme and related matters will be posted to Virgin Money shareholders, subject to approval by the UKLA. Meanwhile, CYB stock has risen 8.53% in the last three months as on July 19, 2018 and trading towards the higher level. Hence, we maintain our “Expensive” recommendation on the stock at the current price of $5.890 and look for a decent investment opportunity at a lower price.
 

CYB Daily Chart (Source: Thomson Reuters)

 
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.