Five stocks you should have bought earlier and held on to

 
Flight Centre Travel Group Ltd


FLT Details

Online TTV expected to exceed $1billion for FY17:Flight Centre Travel Group Ltd (ASX: FLT) has reported a 9.7% increase in TTV globally to $19.3 billion in FY 16. The revenue increased 11.2% to $2.7 billion, leading to an improved income margin of 13.8%. The underlying net profit after tax (NPAT) is $246.7 million, down 3.8%, while statutory NPAT decreased 4.7% to $244.6 million. FLT has also unveiled a number of strategic initiatives, including plans to fast-track growth in six key sectors globally. Moreover, FLT intends to significantly expand online during FY17 which would see them develop a global online presence by launching transactional websites in Europe, Asia, the UAE and South Africa in FY 17 to complement and enhance the existing online businesses in Australia, the Americas and New Zealand. The Online TTV for FY17 is expected to exceed $1 billion.
 

FY 16 Financial Performance (Source: Company Reports)
 
In addition, FLT’s customers will benefit from interest-free finance through FlexiGroup’s wholly owned subsidiary, Lombard Finance Pty Limited on their travel purchases. Initially, FlexiGroup would make an investment of around $3 million in FY17 for this. Trading at a reasonable dividend yield and a decent P/E, we give a “Hold” recommendation on the stock at the current price of $36.52
 

FLT Daily Chart (Source: Thomson Reuters)
 
Bellamy’s Australia Ltd


BAL Details

Strong EBIT growth in FY 16: Bellamy's Australia Ltd (ASX: BAL) reported an EBIT growth of 342% to $54.3 m in FY 16, while the revenue grew 95% to $245 m. China’s revenues surged 331% while NPAT grew by 326% to $38.3 m.  The EBIT margin has more than doubled from 10% in FY15 to 22% in FY16.
 

FY 16 Financial Performance (Source: Company Reports)
 
Moreover, BAL has strong cost management driven by the growth in the business infrastructure as the head count has increased by 50%. BAL intends to continue to invest in its supply chain and other initiatives to drive sustainable growth and further optimize long term returns. Meanwhile, BAL stock has risen 36.08% in the last six months (as of September 07, 2016), and we give a “Hold” recommendation on the stock at the current price of $13.45
 

BAL Daily Chart (Source: Thomson Reuters)
 
SEEK Limited


SEK Details

Exceeded NPAT guidance in FY 16:SEEK Limited (ASX: SEK) reported underlying NPAT of A$198.1m in FY 16 exceeding the NPAT guidance. SEK for Australia and New Zealand Employment has reported a revenue growth & EBITDA growth of 15% considering the benign economy.
 

Growth of Market Opportunity (Source: Company Reports)
 
For the International, SEK’s revenue grew 18% and EBITDA grew 17%. The group also reported for 11% growth in dividends. Since IPO, the total shareholder returns delivered by the company are of the order of 809% against 126% by ASX 200. We give a “Hold” recommendation on the stock at the current price of $15.62
 

SEK Daily Chart (Source: Thomson Reuters)
 
CSL Ltd


CSL Details

Weak bottom line drove the stock lower: CSL Limited (ASX: CSL) has announced that the US Food and Drug Administration (FDA) has accepted for review of CSL Behring’s Biologics License Application (BLA) for its low-volume subcutaneous (SC) C1-Esterase Inhibitor (C1-INH) Human replacement therapy, CSL830, as prophylaxis to prevent Hereditary Angioedema (HAE) attacks. On the other hand, CSL net profit after tax (NPAT) fell 11% year on year (yoy) to US$1,242 million in FY 16 due to acquisition costs of Novartis vaccine. After excluding the Novartis influenza vaccines business financials (acquired in FY 16), the underlying NPAT grew 5% and underlying earnings per share (EPS) grew 7% on a constant currency basis. However, given this weak bottom line, CSL stock fell over 10.61% in the last four weeks (as of September 07, 2016), and is still trading at a higher P/E. However, the group expects to grow its NPAT by 11% for FY17 at constant currency. Based on the foregoing, we give an “Expensive” recommendation on the stock at the current price of $103.72
 

CSL Daily Chart (Source: Thomson Reuters)
 
REA Group Ltd


REA Details

Acquired iProperty group and Flatmates: REA Group Ltd (ASX: REA) has reported a solid 20% increase in revenue to $630m and 16% increase in NPAT to $215m in FY 16 as compared to FY 15 for core operations. Moreover, the group’s core business, realestate.com.au is still number one, and REA is constantly gaining penetration by acquiring iProperty group and Flatmates.
 

FY 16 Financial Performance (Source: Company Reports)
 
There has been an 81% app visits growth on yoy basis. Meanwhile, REA stock has risen 12.73% in the last six months (as of September 07, 2016), and we believe that there is potential in the stock. Based on the foregoing, we give a “Hold” recommendation on the stock at the current price of $55.97
 

REA Daily Chart (Source: Thomson Reuters)

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