AVJennings Ltd

AVJ Details
Voluntary share sale or transfer facility for its Singapore Securities: As a move to address liquidity concerns pertaining to trading on Singapore Exchange Securities Trading Ltd, AVJennings Ltd (ASX: AVJ) has recently come up with voluntary share sale (on ASX) or transfer (to AVJ’s Australian Register) facility for its Singapore based security holders who have group’s shares deposited with The Central Depository (Pte) Ltd. IOOF Holdings Ltd ceases to be a substantial holder of the group. AVJ’s half year result indicated for a revenue slip of 16.6% while statutory profit after tax lost 14.4%. However, the group expects second half to have an improved scenario. 

Outlook (Source: Company Reports)
 
Given the mixed environment and recent sector-driven headwinds, we give a “Speculative Buy” recommendation at the current price of $ 0.59
 

AVJ Daily Chart (Source: Thomson Reuters) 

RCG Corporation Ltd

RCG Details
Lowered underlying annualised full-year EBITDA forecast: RCG Corporation Ltd (ASX: RCG) lately announced that Danny Gilbert and Cindy Gilbert have resigned as Co CEO’s of Hype DC Pty Ltd. Danny Gilbert will remain as a non?executive director of RCG. Earlier, RCG reported that its underlying Net Profit After Tax (NPAT) of $23.3 million indicated for a growth of 34% on the prior year. Underlying diluted Earnings Per Share (EPS) of 4.3 cents witnessed a growth of 17% on the prior year while fully franked interim dividend of 3.0 cents per share soared up 20% on the prior year. Group’s underlying consolidated Earnings Before Interest Tax and Depreciation (EBITDA) was reported to be up 42% to $42.9 million for the half-year ended December 25, 2016, on the prior year. RCG’s Accent division rolled out 28 new stores during the half-year and 12 additional stores are expected to be opened before the end of the financial year. While Accent delivered better retail sales, The Athlete's Foot (TAF) recorded sales were down 2% as Boxing Day fell outside the December trading period. 

Distribution Agreements (Source: Company Reports)
 
RCG now has distribution rights to 10 international brands and over 400 stores across 10 retail banners; and is the regional leader in the retail and distribution of performance and lifestyle footwear. However, given the challenging conditions since Boxing Day, RCG has lowered its underlying annualised full-year EBITDA forecast from $90 million to $85 million - $88 million for the 2017 financial year. In the last six months, the stock has fallen 41.8% (as at April 20, 2017) and is available at bargain price. Drivers such as profit margin benefits from Accent, strategic growth options emerging from Hype DC and efforts from new TAF management team, are expected to revive RCG’s growth. We give a “Buy” recommendation at the current price of $ 0.89
 

RCG Daily Chart (Source: Thomson Reuters) 

Monash IVF Group Ltd

MVF Details
Profit growth in 1H FY17: Monash IVF Group Ltd (ASX: MVF) witnessed 8.8% growth in reported net profit after tax (NPAT) to $15.2m, while the revenues were 0.8% down at $78.7m for the half year ended 31 December 2016 (1H17). Key Markets Stimulated Cycles’ market share increased to 25.9% from 25.3% in prior corresponding period (pcp). It is worth highlighting that the group’s Key Markets Stimulated Cycles’ decreased by 2.4% against overall Key Markets decline of 4.8%. 

Financial Summary (Source: Company Reports)
 
MVF has also indicated for entrance of a new low cost competitor into the Victorian ARS market owing to which MVF’s market share has slipped marginally. However, market share growth in Queensland, stable market share in New South Wales and South Australia, stable balance sheet etc., are seem to offset the drags to some extent. In the last six months, MVF stock has surged 6.9% as at April 20, 2017. We give a “Hold” recommendation at the current price of $ 2.01
 

MVF Daily Chart (Source: Thomson Reuters) 

Cedar Woods Properties Ltd

CWP Details
Forecasted for Record FY17 NPAT: Cedar Woods Properties Ltd (ASX: CWP) has witnessed a stock price fall of 11% in last one month (as at April 20, 2017) owing to sector-driven volatility. On the other hand, net profit after tax for the first half of the 2017 financial year was reported to be $3.0 million, and the group expects a majority of the settlements for FY2017 to occur in the second half. CWP has enhanced its forecast for FY2017 to a record NPAT of $45 million. This has found support from record pre-sales of $274 million (against presales of $176 million at the same time last year), the majority of settling to occur in the second half of the financial year, with the balance in FY2018 and FY2019. The group is progressing well on its long-term strategy of geographic diversification, with the expansion efforts (such as in South Australia). Construction is expected to commence at many new projects - including Oxford Apartments, Wattle Apartments and St. A in Melbourne, and Millars Landing and Forrestdale in Perth. We give a “Buy” recommendation at the current price of $ 5.24
 

CWP Daily Chart (Source: Thomson Reuters) 

Programmed Maintenance Services Ltd

PRG Details
New support services agreement: Programmed Maintenance Services Ltd (ASX: PRG) has witnessed a slip of 8% in its stock price in last one month (as at April 20, 2017). In December 2016, the group inked an agreement with Technip Oceania Pty Ltd (Technip) to provide manning and logistical support services for the Prelude FLNG project, operated by Shell Australia. PRG had earlier revealed that its after?tax profit was of the order of $17.9 million before amortisation and non?trading items for the six months to 30 September 2016 (against 1H FY16 figure of $13.2million), while revenue surged 88% at the back of acquisition of Skilled. The group considers FY17 to be the low point in its cycle for marine services, but expects to find support from non-residential contracted maintenance driven by health and education sectors for property services and infrastructure. We maintain a “Speculative Buy” recommendation at the current price of $ 1.68
 
 
PRG Daily Chart (Source: Thomson Reuters)

Disclaimer
 
The advice given by Kalkine Pty Ltd and provided on this website is general information only and it does not take into account your investment objectives, financial situation or needs. You should therefore consider whether the advice is appropriate to your investment objectives, financial situation and needs before acting upon it. You should seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice) as necessary before acting on any advice. Not all investments are appropriate for all people. Kalkine.com.au and associated pages are published by Kalkine Pty Ltd ABN 34 154 808 312 (Australian Financial Services License Number 425376). The information on this website has been prepared from a wide variety of sources, which Kalkine Pty Ltd, to the best of its knowledge and belief, considers accurate. You should make your own enquiries about any investments and we strongly suggest you seek advice before acting upon any recommendation. Kalkine Pty Ltd has made every effort to ensure the reliability of information contained in its newsletters and websites. All information represents our views at the date of publication and may change without notice. To the extent permitted by law, Kalkine Pty Ltd excludes all liability for any loss or damage arising from the use of this website and any information published (including any indirect or consequential loss, any data loss or data corruption). If the law prohibits this exclusion, Kalkine Pty Ltd hereby limits its liability, to the extent permitted by law to the resupply of services. There may be a product disclosure statement or other offer document for the securities and financial products we write about in Kalkine Reports. You should obtain a copy of the product disclosure statement or offer document before making any decision about whether to acquire the security or product. The link to our Terms & Conditions has been provided please go through them and also have a read of the Financial Services Guide. On the date of publishing this report (mentioned on the website), employees and/or associates of Kalkine Pty Ltd currently hold positions in:  BHP, BKY, KCN, PDN, and RIO. These stocks can change any time and readers of the reports should not consider these stocks as advice or recommendations.