Incitec Pivot Ltd

IPL Details

During H1FY17 Incitec Pivot Ltd reported 11% yoy increase in net profit after tax to $152.1 million in the against the prior corresponding period (pcp). EBIT rose 23% during the period boosted by solid Explosives earnings and initial Waggaman contribution, offsetting fertilizer prices pressure. However, cyclical lows in global commodity prices were a $48.5m negative in terms of EBIT as compared to 1H16, but were offset by $63.9m in productivity savings achieved through BEx. In Explosives end market, structural changes in the US coal sector have been managed through a strategic pivot to the Quarry & Construction segment which grew 5% in terms of volume versus 1H16 and comprised 39% of Americas revenue. Going forward, Quarry & Construction business is well positioned to benefit from US Government infrastructure programs. Shares of IPL declined 6.8% in the last six months, while it is up 10.4% in the past one year (as of July 13, 2017). We maintain a “Hold” recommendation on the stock at the current price of $3.58


IPL Daily chart; (Source: Thomson Reuters) 

Treasury Wine Estates Ltd

TWE Details

Significant changes in the Company’s Executive Leadership: Recently, Treasury Wine Estates Ltd (ASX: TWE) has announced meaningful changes to several roles and responsibilities within the Company’s Executive Leadership Team to drive the next phase of growth. Robert Foye, currently President & Managing Director Asia and Europe, will assume the role of President, North America & LATAM, effective 1 January 2018. In addition to his new role in the United States, Mr. Foye will also assume the role of Chief Operating Officer. Mr. Foye will now work closely with TWE Chief Executive Officer, Michael Clarke to oversee all major operating units across the global business. Bob Spooner will then return to Melbourne, Australia with TWE and delay his retirement to assume the role of General Manager, Global Strategic Initiatives, Systems and Processes, reporting directly to Mr. Clarke. Tim Ford, TWE’s current Director, Global Supply Chain & Industry Affairs will add oversight of Europe, South East Asia, Middle East & Africa to his responsibilities.  Peter Dixon will continue in the role of Managing Director, North Asia and Global Travel Retail with a dual report to Mr. Clarke and Mr. Foye. The stock has moved up 17.5% over the last six months and 32.1% over the past one year and currently trading at elevated levels. We maintain an “Expensive” recommendation on the stock at the current price of $12.89


TWE Daily chart; (Source: Thomson Reuters) 

BT Investment Management Ltd

BTT Details

BT Investment Management Limited’s (ASX: BTIM) Funds under Management (FUM) up $3.2 billion for the quarter ended 30 June 2017. During the quarter, JOHCM saw $1.1bn in net inflows led by ongoing demand by US clients for the International Select fund (+$0.9bn) and the Global Opportunities strategy in the institutional channel (+$0.3bn). While European funds in the OEIC’s experienced inflows of +$0.3bn, there were outflows in UK (-$0.2bn) and global (-$0.2bn) OEIC’s. BTIM Australia saw outflows of $0.4bn resulting from institutional redemptions and the run off in the legacy book.Institutional flows were positive in cash (+$0.2bn) and Australian equities (+$0.1bn) while there were outflows in fixed interest (-$0.2bn) and global equities strategies (-$0.4bn).


Funds under Management; (Source: Company reports)

The effect of the net flows during the June quarter on BTIM Group revenue is an increase to annualized fee income of $6.0m. The Australian Dollar weakened relative to the British Pound and was broadly flat relative to the US Dollar over the quarter, impacted positively to increase FUM over the period by $1.1bn. BTIM Australia performance fees for the year ended 30 June 2017 have now been realized totaling approximately $9.4m in revenue which compares to $3.5m for the 2016 financial year.We maintain an “Expensive” recommendation at the current price of $11.23


BTT Daily chart; (Source: Thomson Reuters)

Sirtex Medical Limited

SRX Details

Recently, Sirtex Medical Limited (ASX:SRX) presented the SIRFLOX/FOXFIRE Global right-side survival data in metastatic colorectal cancer (mCRC) at the 19th European Society for Medical Oncology (ESMO) World Congress on Gastrointestinal Cancer (WCGIC) in Barcelona, Spain. The combined SIRFLOX and FOXFIRE Global studies (n=530 and n=209, respectively) showed that for patients with a right-sided primary tumor, median Overall Survival (OS) was significantly improved with the addition of SIRSpheres Y-90 resin microspheres to standard chemotherapy versus chemotherapy alone [22.0 vs. 17.1 months, respectively; p=0.007; Hazard Ratio (HR): 0.64 (95% CI: 0.46-0.89)], but not for patients with a left-sided primary tumor [24.6 vs. 26.6 months; p=0.279; HR: 1.12 (95% CI: 0.92-1.36)]. There was no statistically significant difference in the baseline characteristics of patients who received SIR-Spheres microspheres plus chemotherapy versus chemotherapy alone.Patients with a right-sided primary tumor were older (mean: 64.4 vs. 61.6 years) and a higher proportion were female (42.5% vs. 32.0%), compared to those with a left-sided primary tumor.

There is now solid scientific evidence to support the observation that for patients whose primary cancer is located on the right-side of the bowel, their prognosis is demonstrably worse, with fewer treatment options and a lower overall life expectancy. The statistically significant 4.9-month OS benefit observed in patients who received SIR-Spheres microspheres is clinically meaningful and subject to further confirmatory analyses, coupled with additional supporting evidence of this OS benefit from the FOXFIRE study. Given the latest developments and optimistic data in clinical trials, we maintain a “Buy” recommendation at the current price of $16.39


SRX Daily chart; (Source: Thomson Reuters)

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