Sealink Travel Group Ltd

SLK Dividend Details
 
Solid Perth presence: Sealink Travel Group Ltd (ASX: SLK) stock has delivered outstanding performance since its listing and generated over 176.67% (as of March 16, 2016) returns to its shareholders. The group reported about the addition of the stock in the S&P/ Dow Jones ASX300 index as per the March quarter updates by S&P Dow Jones Indices. Sealink Travel built a strong presence at four states and the Northern Territory of Australia with regard to its passenger and vehicle services. SLK recently bought Captain Cook Cruises to enhance its presence in Perth for $12 million, and this acquisition would be funded via current undrawn bank facilities. As a result, the group’s marine fleet portfolio expanded to 69 vessels as compared to 62 vessels. SLK intends to leverage the booming WA tourism via this acquisition. As per the group’s FY2017 forecasts, it is acquiring Captain cook Cruises for over 6-7 times 2017 earnings before interest and tax (EBIT). An opportunity is also signaled by growth in Chinese Free Independent Travelers based on the recent International Visitor Survey (Inbound into Australia). Meanwhile, SLK stock surged over 15.28% in the last three months (as at March 16, 2016). We believe that the stock rally would continue further and based on the foregoing, we recommend a “HOLD” on this dividend yield stock at the current price of $4.29
 
 
SLK Daily Chart (Source: Thomson Reuters)
 

Flight Centre Travel Group Ltd

FLT Dividend Details
 
Strengthening Europe Business: Flight Centre Travel Group Ltd (ASX: FLT) continues to expand its global portfolio and recently acquired Business Travel Development, a travel agency in the Netherlands to gain access into Continental Europe. The group also delivered a strong TTV growth of 12.8% despite the slowdown in the economy during the first half of 2016 and consequently reported a revenue rise of 15.1% to $1.3 billion against the prior corresponding period (pcp). FLT developed a solid omni-channel sales network via travel brand as well as is positioning its online businesses to leverage the ongoing boom of online travel business. The group maintained its fiscal year of 2016 underlying PBT target in the range of $380 million to $395 million which is 4% to 8% increase as compared to pcp.
 


FLT growth story (Source: Company Reports)
 
FLT stock surged over 12.40% in the last four weeks and rallied over 25.5% in the last three months (as of March 16, 2016). We believe that the stock has the potential to generate further returns in the coming months and hence recommend investors to “HOLD” this dividend yield stock at the current price of $43.60
 
 
FLT Daily Chart (Source: Thomson Reuters)
 

Corporate Travel Management Ltd

CTD Dividend Details
 
Diversifying portfolio: Corporate Travel Management Ltd.’s (ASX: CTD) stock remained flat this year (as of March 16, 2016) on investors’ concerns that the group’s aggressive growth is driven mainly from acquisitions rather than organic growth. On the other hand, CTD generated over $450 million of organic TTV transactional growth during the first half of 2016. The group’s organic growth accounted for 54% of revenue, 73% of total TTV and 80% of underlying EBITDA increase in the first half. As a result, the CTD stock recovered by 14.26% (as of March 16, 2016) in the last four weeks alone as these strong organic results indicated that the group’s growth is not only dependent on acquisitions. The group built a solid global network having presence at 82 cities in 53 countries.
 


Improving diversification over the last two years (Source: Company Reports)
 
Accordingly, its earnings contributions are also getting diversified slightly decreasing its heavy reliance for earnings from its core Australia and Asian markets. The group is now investing in its SMART client-facing technology, to boost its client-facing tools and hence deliver value proposition. We recommend investors to “HOLD” the stock at the current price of  $13.54
 
 
CTD Daily Chart (Source: Thomson Reuters)
 

Qantas Airways Limited

QAN Details
 
Transformation initiatives: Qantas Airways Limited (ASX: QAN) reported that for January 2016, its total capacity (Available Seat Kilometers) rose 6.4% while the demand (Revenue Passenger Kilometers) surged 8.4%. As a result, its revenue seat factor reached 82%, a 1.6% point’s increase as compared to January 2015. The Group’s Domestic (which includes Qantas Domestic and Jetstar Domestic) capacity rose just 1% against same period of last year, while the International capacity surged by 10.3% driven by better utilization of Group aircraft coupled with strong inbound and outbound demand on routes from Asia and the US. Meanwhile, Qantas also delivered a decent half year ended on December 2015 performance, and reported a top line growth of 5% to $8.5 billion. Moreover, the group was able to control its total unit costs by 7% against pcp. Qantas initiated a $2 billion transformation program to enhance its flexibility and innovation across its business. As a result, the group realized over $261 million of cost and revenue benefits during the period via this move leading to a total of $1.36 billion benefits since 2014. QAN estimates to deliver a total transformation benefits of $450 million for fiscal year of 2016. QAN has been added in S&P/ASX 50 Index and S&P/ASX All Australian 50 Index as per the March quarter updates by S&P Dow Jones Indices. On the other side, the positive January statistics along with decent half year performance, drove QAN stock 5.61% up in the last four weeks and by 8.95% in the last three months (as of March 16, 2016). However, we believe that the stock is trading at higher levels and hence place an “Expensive” recommendation at the current price of  $4.12
 
 
QAN Daily Chart (Source: Thomson Reuters)

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