Treasury Wine Estates Limited

TWE Details
Robust first half 2017 performance: Treasury Wine Estates Limited (ASX: TWE) had reported for a robust first half 2017 performance with revenue from ordinary activities for half year ended December 31, 2016 up 20.2% to $1,294.7 million on a reported currency basis and net profit attributable to members up 132.4%. The earnings before interest, tax, SGARA and material items rose 58.8%. TWE delivered outstanding EBITS margin accretion, up 4.3ppts on a reported currency basis to 17.5% in 1H17 and this included six months of the Diageo Chateau & Estates contribution. On the other hand, there was a rise of about 7.2% in cost of doing business (gross profit less earnings before interest, tax, material items and SGARA) to $273.8 million on a reported currency basis. This was at the back of the factors such as front-ended A&P increase per case in the US, integration of Diageo Chateau & Estates and continued investment in organisational capability presence in Asia and the US. 

Three-phased Journey from Agri to Brand-led (Source: Company Reports)
 
TWE stock has risen 14.3% in last three months (as at March 31, 2017). The stock is now trading at high levels and is close to its 52-week high price.We believe that the stock is “Expensive” at the current price of $ 12.15


TWE Daily Chart (Source: Thomson Reuters) 

Magellan Financial Group Limited

MFG Details
Rise in total funds under management: Magellan Financial Group Limited (ASX: MFG) reported for $46,751 million as total funds under management as at February 28, 2017 against $45,649 million as at January 31, 2017. Further, net inflows of $126 million were recorded for February 2017, and this included net retail inflows into Global Equities strategies of $84 million, net retail inflows into Infrastructure Equities of $23 million, and net institutional inflows of $19 million. The group reported for growth in funds under management and management and services fees with average funds under management up 10% to $42.9 billion while there was 10% rise in Management and services fee revenue to $146.1 million for half year 2017. Underlying profit before tax and performance fees was up 9% to $109.5 million. On the other hand, the group staff expense is expected to increase approximately 9-12% in 2016/17 financial year.MFG stock has risen 8.6% in last six months, as at March 31, 2017. Given the trading scenario and performance, we maintain a “Buy” recommendation at the current price of $ 23.57


MFG Daily Chart (Source: Thomson Reuters) 

Platinum Asset (Investment) Management Ltd

PTM Details
Slight drop in interim dividend: Platinum Asset Management Ltd (ASX: PTM) reported its funds under management of $22,904.3 million as at February 2017 against $23,135.8 million as at January 2017. PTM earlier reported for NPAT of $95.41 million for the half-year ended 31 December 2016 and this was a drop of 20.29% compared to prior corresponding period. The revenue from ordinary activities were of the order of $161.81 million, down 16.04% from last year’s figure. PTM’s net operating cash flow was $89.18 million compared to $113.78 million last year. There was a slight drop in interim dividend to 15 cents against last year’s 16 cents for the same period. PTM stock has dropped 3.2% in last three months (as at March 31, 2017) but rose 2.6% in last five days. Despite some level of volatility in the recent past, the long-term prospects provide for some support while we give a “Buy” recommendation at the current price of $ 5.12


PTM Daily Chart (Source: Thomson Reuters) 

Macquarie Atlas Roads Group

MQA Details
Earnings growth improvement in 2016: Macquarie Atlas Roads Group (ASX: MQA) witnessed growth in traffic, revenue and EBITDA across all portfolio assets during 2016. For APRR, earnings growth improved at the back of contractual toll increases in 2016 and disciplined cost management, and EBITDA margin rose from 71.8% to 72.4%. APRR credit ratings have also been updated by both Standard & Poor’s (S&P) and Fitch during 2016 with S&P upgrading the rating from BBB+ (Stable Outlook) to A- (Stable Outlook) in November and Fitch revising the rating from BBB+ (Stable Outlook) to BBB+ (Positive Outlook) in October 2016. For Dulles Greenway, traffic volumes enhancement and 2016 toll increases led to better revenue (7.8% up) and EBITDA growth (8.8% up). For Warnow Tunnel, higher traffic volumes and toll increases in May and November of 2016 helped the revenue rise by 6.3%. The group aims to witness growth from acquisition of remaining 50% interest in Greenway for US$445m and additional 10.11% indirect interest in ADELAC.
 

APRR Debt Profile and Cost of Debt (Source: Company Reports)
 
The group has completed its security purchase plan offer launched on March 03, 2017, and the offer was oversubscribed. MQA had offered eligible stapled securityholders to subscribe for new MQA stapled securities up to a maximum value of A$15,000 per eligible stapled securityholder. The stock has risen 5.13% in last one month as at March 31, 2017. We maintain a “Hold” recommendation on the stock at the current price of $ 5.05


MQA Daily Chart (Source: Thomson Reuters)

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