Platinum Asset (Investment) Management Limited

PTM Details

Mixed Investment Performance: Platinum Asset Management Limited’s (ASX: PTM) stock climbed up 1.512 per cent on August 21, 2018 ahead of its full-year 2018 earnings report which is expected to be released on August 23, 2018. Besides this, the company’s funds under management (FUM) post-annual distribution to unitholders in July had risen to $ 26,074.2 million from FUM of $ 25,698.7 million in June and this represents a moderate growth of about 1.5% against prior corresponding period. As at 30 June 2018, the Platinum International Fund recorded a 14% and 13% gain in its past one year and five years’ performance, respectively, while there was a respective 15% and 14% increase in the MSCI AC World Index. Since inception, the Company has achieved a return of 13% per annum compound, after all fees and expenses, outperforming the MSCI over that time by around 7.0% per annum compound.
 

Funds Under Management (Source: Company Reports)

On the financial front, ROE substantial increased from 26.8% to 29.8% in 1HFY18 from the previous six months. The current ratio stood at 12.85x in 1HFY18 which is higher than the Industry media (1.47x), represents high liquidity of the firm. Meanwhile, PTM stock has fallen 31.03 per cent in the past six months as on August 20, 2018 and is trading at its 52-week low price. We maintain our “Expensive” recommendation on the stock at the current price of $ 5.370, while looking for some key catalysts and also considering US-China Trade war scenario and rise in US interest rate.


PTM Daily Chart (Source: Thomson Reuters)
 

ImpediMed Limited

IPD Details

Decent Q4FY18 Performance: ImpediMed Limited (ASX: IPD) is a small-cap company with the market capitalization of circa $102.33 Mn as of August 21, 2018. It is a global provider of medical technology to measure, monitor and manage tissue composition and fluid status using bioimpedance spectroscopy (BIS). It produces a family of FDA cleared and CE Marked medical devices, including SOZO for multiple indications including heart failure and lymphoedema while sold in select markets globally. Recently, the group has presented its business prospects at the Canaccord growth conference in the USA and highlighted about business objective for FY18. It was presented by Mr. Richard Carreon– the Managing Director and CEO. According to the presentation, BIS can simply provide highly accurate and informative metrics to routinely monitor and manage the health of patients. Moreover, the potential applications for BIS-generated healthcare metrics are very extensive and are likely to become a key element for managing a wide variety of patients. Besides this, subscription revenue now accounts for 10% of the company’s quarterly medical revenue, (up from over 3% as compared to the prior corresponding period (PCP)). Total Contract Value (TCV) substantially increased by 111% to $1.9 Mn in Q4FY18 from the previous quarter while Contracted Revenue Pipeline (CRP) grew by 75% to $3.5 Mn during the same period over the prior corresponding period. As at 30 June 2018, the group had a cash reserve of A$31.3 Mn.


Revenue Highlights (Source: Company Reports)

Morgan Stanley and its subsidiaries ceased to be the substantial holder of the Group since 10 August 2018. Mitsubishi UFJ Financial Group, Inc also ceased to be the substantial holder of the Group since 10 August 2018. Moreover, Macquarie Group Limited and its related bodies corporate, a substantial holder of the group upwardly revised its holding from 5.13% of interest to 6.19% of the voting power. Meanwhile, the share price has fallen 60.87 per cent in the past six months as at August 20, 2018 and traded close to the 52-week lower level. Hence, we give a “Hold” recommendation on the stock at the current market price of $0.275 (up 1.85% on August 21, 2018) by looking at its fundamentals and development activities in the medical space.
 

IPD Daily Chart (Source: Thomson Reuters)
 

Magellan Financial Group Limited

MFG Details

Decent FY18 result with dividends in focus: Magellan Financial Group Limited (ASX: MFG), having a market capitalization of $ 4.84 Bn and the dividend yield of 4.9%, experienced net inflows of $98 Mn in July month, which included net retail inflows of $106 Mn and net institutional outflows of $8 Mn. While in June month, the Group experienced net inflows of $218 Mn, which included net retail inflows of $4 Mn and net institutional inflows of $214 Mn as of 30 June 2018. There was a moderate growth of ~1% in total funds under Management from June 2018 to July 2018. This growth was mainly supported by decent growth of institutional fund management business. Based on this, the group paid distributions (net of reinvestment) of approximately $772 million in July 2018.


FUM as at July 2018 (Source: Company Reports)

For FY18, group’s revenue grew by 34 percent to $452.6 million and diluted EPS stood at 122 cents per share, marking a decent growth of 7% on Y-o-Y basis. The group has also enhanced the pay-out ratio in the range of 90-95% of the funds management business net profit after tax from the previous pay-out of between 75% and 80%. In the meantime, the share price has risen 14.38 per cent in the past three months as at August 20, 2018 and traded close to 52-week higher level. Hence, we maintain our “Hold” recommendation on the stock at the current market price of $27.130, considering the aforesaid facts and trading level.
 

MFG Daily Chart (Source: Thomson Reuters)

 
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