Mesoblast Ltd

MSB Details
 
Improving cash burn out and narrowing loss: Mesoblast Ltd (ASX: MSB) reported a first half financial results with strong cash reserves of $120.8 million as of December 31, 2015 compared to $110.7 million as of June 30, 2015. Operating cash outflow for the second quarter of 2016 stood at $19.8 million, a reduction of over 25% in comparison to the first quarter of 2016 and the fourth quarter of 2015. MSB reported a narrow down in loss before tax to $35.5 million from $43.4 million in the comparable period a year ago. Revenue was up 2% to $11.5 million led by a milestone revenue of $3.5 million recognized on approval of TEMCELL Hs. Inj. MSB delivered an outstanding performance in the last five days alone and surged over 11.36% (as of March 07, 2016) resulting to over 71.33% increase in the last four weeks (as of March 07, 2016). MSB has also updated that its licensee, JCR Pharmaceuticals Co. Ltd., in Japan has launched TEMCELL Hs. Inj. for treatment in adults and children in Japan. We believe that the stock has more potential to generate returns for investors. We remain bullish on the stock and based on improving financials and a stable cash position, we reiterate our "BUY" recommendation for MSB at the current share price of  $2.29.
 
 
MSB Daily Chart (Source: Thomson Reuters)
 

WorleyParsons Ltd

WOR Dividend Details
 
Cost reduction initiatives: For the first half financial year 2016, WorleyParsons Ltd (ASX: WOR) recorded an underlying net profit after tax of $73.9 million, down 29% from the prior corresponding period. This includes $86.8 million in charges for redundancy, onerous lease and onerous engineering software licenses. Aggregated revenue was down 12% to $3.17 billion. Overhead reduction program during the six months to December 31, 2015 is expected to deliver savings of around $80 million in full financial year 2016 and estimated annualized ongoing savings of $120 million.



Cost reductions supporting margins (Source: Company reports)
 
Underlying EBIT margins declined slightly from 5.0% to 4.7% for the corresponding period. However, with a high dividend yield and cost reduction initiatives, we rate the stock a "BUY" at the current share price of  $5.93
 
 
WOR Daily Chart (Source: Thomson Reuters)
 

Liquefied Natural Gas Ltd

LNG Details
 
Projecting a better future: For the first half ended December 31, 2015, Liquefied Natural Gas Ltd(ASX: LNG) reported revenue of $359,000 compared to $382,000 in the year ago period. Net loss for the period widened to $80.2 million from $26.9 million. LNG reported almost A$114 million of cash, inclusive of restricted and unrestricted funds, as of January 1, 2016.
 


Financial snapshot (Source: Company reports)
 
Project development expenditure increased from $24.9 million to $68.4 million, reflecting expansion of LNG project activity. The company’s subsidiary, Gladstone LNG Pty Ltd has extended the FLLNG Site Agreement for lease with the Gladstone Ports Corporation to March 31, 2017, which may get extended to 2018 subject to appropriate evidence of positive investment. Based on the above stated factors, we rate the stock a "BUY" at the current share price of  $0.615
 
 
LNG Daily Chart (Source: Thomson Reuters)
 

Greencross Ltd

GXL Dividend Details
 
Strong cash conversion and ongoing expansion of network: Greencross Ltd(ASX: GXL) for its first half financial year 2016 reported a revenue of $362.7 million, which is an increase of 18% from year ago period driven by network expansion and Group LFL sales of 5.1%. EBITDA increased 105% to $45.1 million reflecting sustained investment in growth capabilities and systems. Greencross has added 11 retail stores to its network in first half while it added 17 clinics to its network. The company recorded strong first half cash conversion of 116% reflecting effective working capital management. Interim dividend increased 13% to 9 cents. Trading at a decent dividend yield with positive financial results, we issue the stock a "HOLD" recommendation at the current share price of  $7.37
 
 
GXL Daily Chart (Source: Thomson Reuters)
 

Myob Group Ltd

MYO Details
 
High quality revenue stream: Myob Group Ltd (ASX: MYO) reported full year of 2015 financial results with 10% proforma revenue growth to $328 million, and 11% up recurring revenue or 95% of total revenue, reflecting high quality nature of the revenue stream. The company's SME paying users increased 8% to 545,000 during the fiscal year of 2015 with SME ARPU of $379 indicating a 5% rise.

 

Growing SME driving revenue (Source: Company reports)
 
Proforma EBITDA growth increased 19% to $153 million while NPATA growth was at 22% to $86 million. During the year, MYO cash flow conversion stood at 87%. Given the dividend yield and positive financials, we rate the stock as a "BUY” at the current share price of  $3.11
 
 
MYO Daily Chart (Source: Thomson Reuters)

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