Link Administration Holdings Ltd

LNK Details

Completed Capita Asset Services’ acquisition: Link Administration Holdings Ltd (ASX: LNK), a provider of superannuation fund administration services, has completed the acquisition of Capita Asset Services, who is a leading player across fund, shareholder, corporate services, private client and debt service lines. This move will provide immediate scale and leadership in UK and Europe, and has already driven the stock by 13.9% in the last four weeks (as of November 07, 2017) placing them at higher levels.
 

FY17 Result (Source: Company Reports)
 
LNK has a high recurring revenue of 90% at the back of the 3 to 5 years’ contracts in the funds administration and registry services’ area. There may be some challenges going forward in the core Fund Administration business in terms of driving significant growth. Looking at the trading scenario and prospects, we believe that the stock is “Expensive” at the current price of $8.64



LNK Daily Chart (Source: Thomson Reuters)
 

Aventus Retail Property Fund

AVN Details

Strong dividend player: Aventus Retail Property Fund (ASX: AVN) has reported a distribution amount of AUD 0.0405 while the stock has a strong dividend yield of 6.9%. The group acquired two Sydney metropolitan large format retail (LFR) centers valued at $436 million while raised $215 million equity via an entitlement offer. The group has a solid occupancy of 98.3% and continued tenant remixing with 133 leases negotiated covering 107,000 sqm enabling low incentives and positive leasing spreads. Their Tenant base has been diversified with the non-household category enhancing to 34% of the portfolio by GLA or 37% by gross income. The identified development pipeline to 30 June 2018 is forecasted to be $50 million, which is more than double the FY17 pipeline. Thus, growth pipeline along with group trading at a premium to net tangible assets along with having exposure to large format retail assets provide a good opportunity. While retail sector challenges prevail at large, the stock is trading at a very cheap P/E and seems to have upside potential given the growth catalysts. We put a “Speculative Buy” recommendation on the stock at the current price of $2.35



AVN Daily Chart (Source: Thomson Reuters)

Bapcor Ltd

BAP Details

Positive start to FY18: Bapcor Ltd (ASX: BAP), which operates over 120 Auto Parts stores across Australia, has continued to expand their presence in all segments while their Hellaby automotive acquisition is exceeding the original expectations.
 

Business segments’ performance (Source: Company reports)
 
The group is aiming to achieve 30% NPAT growth in FY18. The group’s statutory NPAT rose 23.3% year on year (yoy) to $53.7 million in FY17. BAP stock rose over 6.7% in the last four weeks (as of November 07, 2017) while we believe the momentum will continue. Particularly, factors such as warehouse optimisation process, growth from acquisitions and sale of non-core assets are expected to drive performance. We give a “Speculative Buy” on the stock at the current price of $5.56



BAP Daily Chart (Source: Thomson Reuters)
 

Oil Search Ltd

OSH Details

Positive developments: Oil Search Ltd (ASX: OSH) reported that their P’nyang South 2 well at PRL 3/APDL 13, North-West Highlands, PNG, has aimed to migrate 2C (proven and probable) gas resource volumes to the 1C (proven) category as well as appraise 2C resource upside potential identified in the south-eastern part of the field. Lately, the group acquired interests in world class, Tier 1 oil assets with material growth potential in the Alaska North Slope, a well-established, prolific oil province with an attractive fiscal regime. These assets would enhance their current high-quality gas assets in Papua New Guinea. The group is aiming gross production rates of 80,000 - 120,000 bopd at plateau for the first phase of development (7 - 11 million barrels pa net to Oil Search), with first production in 2023. Moreover, group’s additional exploration and appraisal are expected to support growth profile. We give a “Hold” recommendation on the stock at the current price of $7.49



OSH Daily Chart (Source: Thomson Reuters)

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