Stocks’ Details
 

Aventus Retail Property Fund

FY18 FFO per unit to be at lower end of 2%-4% growth: Aventus Retail Property Fund (ASX: AVN) expects the FY18 FFO per unit to be at the lower end of previous guidance of 2%-4% growth over FY17 FFO. On the other hand, AVN has executed agreements with bank and institutional lenders for a 7-years’ $110m Loan Note Facility, that will mature in January 2025. The company has done this to refinance a portion of the $200m tranche of bank debt expiring in October 2018. AVN expects that the remaining portion of the tranche of approximately $90m will be refinanced by the end of the financial year. Meanwhile, AVN stock has fallen 6.90% in three months as on January 31, 2018 and is trading at a low level. The half year results are due on February 12, 2018. Based on the FY 18 projection, we give a “Speculative Buy” recommendation on the stock at the current price of $2.14
 

AVJennings Ltd

Strong pipeline: AVJennings Ltd (ASX: AVJ) for FY18 expects the contracts signings between 1,900 to 2,100 lots (Actual FY17 signed is for lots 1,843). The company expects to start 5 projects before the end of the FY 18. The new projects were realised in FY17, will increase in 2018 and they will be strongest in 2019, 2020 and beyond. Additionally, AVJ in FY 18 will maintain a net debt to total assets within the range of 15% to 35%. For FY 18, the dividend payout ratio will be in the range of 40% to 50% of earnings. Meanwhile, AVJ stock has risen 8.57% in three months as on January 31, 2018 and is trading at a reasonable level. Based on the time to release the new projects undertaken, we give a “Speculative Buy” recommendation on the stock at the current price of $0.76
 

Acquisitions and Milestones (Source: Company Reports)
 

Dicker Data Ltd

Appointment as key Distributor: Dicker Data Ltd (ASX: DDR) is appointed as a distributor of Juniper Networks for the Australian market; and from December 2017, the company was granted access to the entire Juniper Networks’ product portfolios including networking, security, applications and software-defined. Moreover, DDR is appointed as a distributor of Hewlett Packard Enterprise in the New Zealand market and from December 2017, and Dicker Data New Zealand has been granted access to the Aruba, Datacentre Networking and Nimble Storage portfolios from Hewlett Packard Enterprise. As a result, DDR stock has risen 9.89% in three months as on January 31, 2018 and is trading at slightly high levels. Based on the foregoing, we give a “Hold” recommendation on the stock at the current price of $2.80
 

Lifehealthcare Group Ltd

Reaffirmed FY18 guidance:Lifehealthcare Group Ltd (ASX: LHC) has reaffirmed its FY 18 guidance and expects for FY18 high single to low double-digit growth in revenue, underlying EBITDA and underlying NPATA EPS. This is due to FY18 Q1 trading in line with expectations and PL impact mitigation identified. Further, in FY 18 LHC expects to improve gross margin year on year. On the other hand, LHC has signed four-year strategic Agreement with Australian med-tech sector for Prostheses List reform, including pricing. The price reduction in 2018 will be implemented in two tranches, 80% from 1^st February 2018 and 20% from 1^st August 2018. The price reduction in 2020 will be 100% from 1^st February 2020. LHC expects to continue to achieve sustained above market growth through combined organic and inorganic opportunities and leveraging operational efficiencies in the business. Based on the foregoing, we give a “Hold” recommendation on the stock at the current price of $2.58
 

FY 17 Financial Performance (Source: Company Reports)
 

National Storage REIT

Reaffirmed its FY18 underlying EPS guidance:National Storage REIT (ASX: NSR) has reaffirmed its FY18 underlying EPS guidance of 9.6-10.1 cents per stapled security. The total acquisitions and issue of new stapled securities are anticipated to be neutral to FY18 underlying EPS and accretive in the first full year of ownership. Further, NSR’s additional $35 million of acquisition opportunities are under negotiation. Moreover, NSR has offered the eligible shareholders the opportunity to participate in a Security Purchase Plan (SPP), that will allow the investors to potentially contribute up to A$15,000 in applying for fully paid ordinary stapled securities in NSR. The offer was opened on 9^th January 2018. Recently, NSR had raised A$50 million through the Placement. The company is raising fund through SPP and the Placement, in order to reduce the existing debt and to provide NSR with the financial flexibility to pursue acquisition opportunities or other actions in line with NSR’s stated business strategy. Based on the foregoing, we give a “Hold” recommendation on the stock at the current price of $1.49
 

WAM Research Ltd

Appointment of the global fund manager & WAM Global initial public offering:WAM Research Ltd (ASX: WAX) has entered the FY 18 with a conservative balance sheet, a high cash weighting, no debt and a flexible and proven investment approach. In FY 17, WAX had 11.1% investment portfolio performance and declared 9.0 cents per share fully franked full year dividend. However, the group’s December Returns were slightly below the S&P/ASX All Ordinaries Index. Meanwhile, Wilson Asset Management has appointed the global fund manager and past employee Catriona Burns CFA as the Lead Portfolio Manager for WAM Global Limited. Further, WAM Capital, WAM Leaders, WAM Microcap, WAM Research and WAM Active shareholders will receive a priority allocation in the WAM Global initial public offering that is expected to be launched in late April 2018. Meanwhile, WAX stock has fallen 5.05% in three months as on January 31, 2018. Given the return trends, we put a “Speculative Buy” recommendation on the stock at the current price of $1.50

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