Scentre Group

SCG Details

Forecasting a better Funds from Operations’ performance: Scentre Group (ASX: SCG) delivered a Funds from Operations of $638 million for the first six months to June 30, 2017, and this represented 12.01 cents per security, up 3.5%. The group is forecasting a better FFO growth of over 4.25% for entire fiscal year of 2017. Their profit reached $1.4 billion, driven by $929 million of revaluation gains from ongoing growth in operating income across the portfolio and the finishing of the Westfield Chermside redevelopment.


First half of 2017 performance (Source: Company reports)
 
The group started with $900 million (wherein their share is $625 million) in developments with expected total returns of more than 15%. We give a “Buy” recommendation on the stock at the current price of $ 3.86

 

SCG Daily Chart (Source: Thomson Reuters) 

Platinum Asset Management Limited

PTM Details

Strong returns: Platinum Asset (Investment) Management Limited (ASX: PTM) raised over $136 million via PMC placement/share purchase plan and PAI option exercise. The group reported that their new Quoted Managed Funds would be admitted to trading on ASX shortly. The group is exploring options to better service their European clients while reviewing distribution arrangements in the US.

 

Investment performance (Source: Company reports)
 
The group has made a recovery in terms of investment performance. Its International funds have generated strong returns of 21.3% for last one year (as of June 2017). PTM stock has risen 7.4% in the last five days (as at August 30, 2017). We give a “Buy” on this dividend yield stock at the current price of $ 5.96

 

PTM Daily Chart (Source: Thomson Reuters) 

Galaxy Resources Limited

GXY Details

Commercial production of Mt Cattlin to drive business: Galaxy Resources Limited (ASX: GXY) reported that their Mt Cattlin transitioned into commercial production as of May 2017, while the group has been planning for a ramp up and commissioning of the plant. The group enhanced the Run-rate across the half year with spodumene production of 14,038t in June (exceeding 160ktpa run rate). They shipped 4 lithium concentrate during the half year. Average realised sales price reached US$542/dmt during the March quarter (balance of sales on 2016 pricing) and US$724/dmt in the June quarter. Galaxy controlled their June cash costs to US$334/dmt and expects further cash costs cut across the second half of 2017. GXY’s half-year operating sales revenue was $14,975,000 while half-year loss after tax of $6,481,000 was reported. The group is progressing well with regards to its Sal de Vida operations with revised Definitive Feasibility Study supporting low cost and long-life project with robust economics. The stock was up 7.9% on August 31, 2017. We rate the stock “Buy” at the current price of $ 1.90

 

GXY Daily Chart (Source: Thomson Reuters) 

Amaysim Australia Limited

AYS Details

Controlled operating costs in the mobile business: For full year 2017, Amaysim Australia Limited (ASX: AYS) reported a statutory EBITDA rise of 35% yoy to $33.8 million while statutory net revenue enhanced 29% yoy to $326.7 million. The group controlled underlying operating costs in the mobile business by 8% yoy to $45.9 million while delivering an ongoing mobile subscribers growth of 11% yoy to 1.074 million.

 
Growth in Mobile subscribers, and statutory gross profit and underlying EBITDA (Source: Company reports)
 
AYS launched amaysim nbnTM broadband with the business performing to plan. On-going momentum across all product verticals is going to bring further growth for the group. We recommend a “Buy” on this dividend yield stock at the current price of $ 1.90

 

AYS Daily Chart (Source: Thomson Reuters) 

Saracen Mineral Holdings Limited

SAR Details

Strong EBITDA performance: Saracen Mineral Holdings Limited (ASX: SAR) managed to deliver an EBITDA rise of 54% yoy to A$113.4 million while NPAT enhanced 10% yoy to A$28.4 million for FY17. The revenue surged 53% yoy to A$423.1 million while gold production enhanced 45% to a record 272,807 ounces. The group aims to achieve all-in sustaining cost (AISC) of A$950/oz in FY20 (FY17 AISC of A$1,348/oz). The stock has risen 33% in last three months (as at August 30, 2017).We give a “Buy” on the stock at the current price of $ 1.36

 

SAR Daily Chart (Source: Thomson Reuters) 

Beach Energy Limited

BPT Details

Capital program reaping benefits: Beach Energy Limited (ASX: BPT) is aiming for drilling of 78 wells by FY18 to enhance their reserves and guide development. The group allocated two thirds of FY18 discretionary expenditure for >60% internal rate of return potential projects. Beach is aiming to have >10 MMboe annual production by FY19-FY20 and more than 100% 2P reserves replacement to FY19. BPT even controlled cash flow breakeven by 39% to US$16/bbl while Cooper Basin JV field operating costs fell 20%. We maintain a “Buy” on the stock at the current price of $ 0.67

 

BPT Daily Chart (Source: Thomson Reuters) 

Onevue Holdings Limited

OVH Details

Outstanding FY17 performance: In its 2017 performance update, Onevue Holdings Limited (ASX: OVH) reported that their Fund Services fund management administration inked a five-year contract with NAB Asset Servicing, and this has almost doubled the number of transactions, fund managers and funds managed by the division. FUA in Fund Services fund management administration enhanced by $79 billion during the year reaching $489 billion. Fund Services superannuation member administration FUA enhanced 72% to $1.96 billion, whilst member numbers surged 145% yoy to 90,000.

 

FY17 highlights (Source: Company reports)
 
There was a 35% rise in gross inflows of $1.2b for the year as recorded for the Platform Services. OVH stock rallied over 15.7% in the last five days (as at August 30, 2017) and we give a “Buy” on the stock at the current price of $ 0.59

 

OVH Daily Chart (Source: Thomson Reuters) 

EML Payments Limited

EML Details

Solid top line: EML Payments Limited (ASX: EML) reported an outstanding group revenue rise of 149% yoy to $58.0 million during fiscal year of 2017. Gross Debit Volume (GDV) surged 348% yoy to $4.42 billion during the period. As a result, the stock rallied over 11.7% in the last four weeks (as of August 30, 2017). The Revenue / GDV metric was cut to 1.3% on the back of a shift in mix from Non-Reloadable products to Reloadable and B2B Virtual Payments which generated $2.49bn of total GDV. Given the shift to non-cash payments and prospects of the fast-growing market in which EML operates, we give a “Speculative Buy” on the stock at the current price of $ 1.84

 

EML Daily Chart (Source: Thomson Reuters) 

Australian Agricultural Company Limited

AAC Details

Management changes: Australian Agricultural Company Limited’s (ASX: AAC) stock moved up about 4.6% on August 31, 2017 with improving sentiments. Meanwhile, AAC’s Managing Director and Chief Executive Officer, Jason Strong, resigned from the group. Under his leadership, AAC shifted from pastoral company towards a vertically integrated, luxury, branded beef business. The group’s overall performance is still strong and the Singapore operations launch reported a volume growth of 11% yoy while overall average sale prices enhanced 28% yoy during September 2016 and March 2017. The group’s Livingstone facility reported a 26% rise in the number of head processed, and a 30% rise in the kilograms of beef produced. The group also controlled their cattle production costs by 27% while the average selling price for Wagyu and shortfed beef enhanced 12% per kilogram. The group is expected to drive growth in FY18 and beyond with support from efforts driving high value, focus on operating margin, and improvement in cost of production. We give a “Buy” on stock at the current price of $ 1.59

 

AAC Daily Chart (Source: Thomson Reuters)

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