Kogan.com Ltd

Strong 1H 2018 Financial Performance: Consumer discretionary group and online retailer, Kogan.com Ltd.’s (ASX: KGN) stock surged 18.9% on February 22, 2018 after the company exceeded $200m of 1H 2018 revenue while Active Customer base crossed 1.1m and EBITDA exceeded full year FY17 Pro Forma EBITDA. The company for 1H 2018 has reported 45.7% growth in the revenue to $209.6 million while EBITDA grew 93.2% to $14.1 million on prior year. The trading NPAT grew 118.9% to $8.1 million and has outperformed full year FY17 Pro Forma NPAT of $7.2 million. With benefits from new products and services and new customers, KGN stock has risen 63.21% in three months as on February 21, 2018, and we give a “Hold” recommendation on the stock at the current price of $8.60
 

1H FY18 Summary (Source: Company Reports)
 

Nine Entertainment Co Holdings Ltd

Strong Performance for 1H 2018 with consistently improved ratings performance:Nine Entertainment Co Holdings Ltd.’s (ASX: NEC) stock surged 16.4% on February 22, 2018 after the company reported 9% growth in the revenue, Group EBITDA growth of 51% to $181m and 55% growth in the Reported Net Profit after Tax to $116m for 1H 2018. Moreover, in 1H 2018, NEC has consistently improved the ratings performance with 25-54s Network share of 39.5%; number 1 revenue share for the half of 40.0%, up 5 points on pcp; and number 1 revenue share for the calendar year of 38.3%, up 3 points. We give a “Hold” recommendation on the stock at the current price of $1.97, given the turnaround.
 

1H 18 Financial Performance (Source: Company Reports)
 

Afterpay Touch Group Ltd

Purchasing customers grew more than 85% in 1H 2018: Technology player, Afterpay Touch Group Ltd.’s (ASX: APT) stock rose 1.9% on February 22, 2018 as the company’s purchasing customers grew more than 85% to over 1.5 million in 1H 2018. Further, APT’s retail partners, are now over 12,000 in Australia and New Zealand, and have sold more than $900m of goods and services, which is an increase of 120% over the prior six-month period. Moreover, the 1H 2018 is the first financial period, which shows the performance of the whole APT group post-merger. In the 1H 2018, APT has posted the total revenue and other income of $60.7m, while the company has reported statutory net profit before tax of $0.7m. Meanwhile, APT stock has risen 29.42% in three months as on February 21, 2018. Based on the foregoing, we give a “Hold” recommendation on the stock at the current price of $7.53
 

Mortgage Choice Ltd

Net Profit After Tax on a cash basis up 7% in 1H 2018: Mortgage broking firm, Mortgage Choice Ltd (ASX: MOC) in 1H 2018 has reported 7% growth in the Net Profit After Tax on a cash basis to $12.5 million. The loan book grew 3.2% to $54 billion and the Funds Under Advice increased 50% to $634.2 million from the prior corresponding period. Further, Premiums in Force grew 21% to $26.6 million over the same period. However, in 1H 2018, financial planning revenue and diversified product revenue, home loan settlements fell slightly. Looking at the trading levels, we give an “Expensive” recommendation on the stock at the current price of $2.53
 

Peet Ltd

Topline down by 17% in 1H 2018:Peet Ltd.’s (ASX: PPC) stock fell over 2% on February 22, 2018 after the company reported 17% fall in the revenue to $127.5m due to the joint venturing of the Newhaven (VIC) project at the end of 1H17. However, the operating profit after tax grew 11% to $21.9m. Meanwhile, PPC stock has fallen 7.07% in three months as on February 21, 2018 and looks “Expensive” at the current price of $1.35
 

Blackmores Ltd

Weak outlook for the second half of 2018: Health supplements company,Blackmores Ltd.’s (ASX: BKL) stock plunged 14.7% on February 22, 2018 after the company gave weak outlook for the second half of 2018. As per the company, the supply issues are affecting BKL and the soft Australian retail market will impact the company in the second half. However, the company is confident to deliver good profit growth for the full year. Moreover, in 1H 2018, BKL has reported 9% growth in the Group net sales to $287 million and 20% growth in net profit after tax. It is nonetheless noted that, in 1H 2018, the revenue in Australia and New Zealand is slightly down compared to last year as the broader consumer market is subdued and China-influenced sales continue to move to the direct China channels. We maintain an “Expensive” recommendation on the stock at the current price of $136.00
 

Asaleo Care Ltd

Weak 1H 2018 performance, CEO Transition and FY 18 outlook:Personal care product provider, Asaleo Care Ltd.’s (ASX: AHY) stock fell 4.3% on February 22, 2018 after the company posted 3.3% fall in the FY17 revenue and 8% fall in the NPAT to $59.4 million at the back of greater price competition in the tampon market and the loss of private label business for its baby care division. Moreover, the Chief Executive Officer/Managing Director Mr. Peter Diplaris, will step down and will leave the company in May 2018. Mr. Sid Takla, Chief Operating Officer (COO), will be the interim CEO from May 2018. Additionally, for FY 18, the company expects underlying EBITDA to be in the range of $113 million to $119 million. Given the softness in trading and financial performance, we put a “Hold” recommendation on the stock at the current price of $1.45
 

1H 18 Financial Performance (Source: Company Reports)
 

Perpetual Ltd  

NPAT grew 3% in 1H 2018: Investment group, Perpetual Ltd.’s (ASX: PPT) stock rose 1.9% on February 22, 2018 after the company reported 6% growth in the 1H 2018 operating revenue due to higher equity markets. Further, in 1H 2018, NPAT grew 3% over 1H17 but 4% lower than 2H17 principally due to the previously disclosed litigation costs during 1H 2018 in addition to the movements in UPAT. Additionally, the external environmental factors, such as regulatory and political uncertainty, and market volatility seem to pose near-term challenges. We believe that the stock is “Expensive” at the current price of $53.89
 

Cedar Woods Properties Ltd

1H 2018 result similar to 1H 2017: Real Estate company, Cedar Woods Properties Ltd.’s (ASX: CWP) stock moved up by 1.5% after the company posted 1H 2018 result similar to 1H 2017, and consistent with guidance provided in previous announcements. For 1H 2018, the revenue fell 4.1% to $54.3 million, net profit is of the order of $3.2 million, up 6.5% over the prior corresponding half with gross margin across the portfolio similar to the prior corresponding half. The group has benefitted from demand in housing along with a healthy Eastern seaboard portfolio and the group expects strong settlements and earnings in the second half. We give a “Hold” recommendation on the stock at the current price of $5.93

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