Webster Limited

Decent Outlook: Leading Australian agribusiness company, Webster Limited (ASX: WBA) reported a net profit after tax (NPAT) of $3.8 Mn in 1HFY18. Revenue and other income was $47.9 million during the same period. This was mainly driven by the improved yields and pricing in cotton, partially offset by lower yields in walnuts. During the first half, the group acquired 934.7 hectare of the Sandy Valley almond property in NSW for a total consideration of $16.8 Mn. The purpose of this acquisition is to diversify its asset base across its core geographic holdings. The company has also acquired a 1,000-hectare greenfield development adjacent to its Avondale walnut orchard for the consideration of $4.8 Mn and an additional 150 hectares adjoining its Leeton walnut orchard for $500,000. As of now, the group is aggressive to expand its horticultural operations with the nursery development programme at Leeton expected to provide more than 100,000 trees annually. Based on the decent earnings, the Board of Directors declared an unfranked dividend of 9 cents per share, which was paid on June 27, 2018.


1HFY18 Financial Highlights (Source: Company Reports)

Meanwhile, the stock moved up 30.51% in the past six months but was down by 2.75 per cent in the past one month as at July 31, 2018. We expect that there is still significant opportunity as it has robust fundamentals and has a lot of potential to grow further backed by positive market outlook, ensuring top-line growth. Hence, we give a “Hold” recommendation on the stock at the current price of $ 1.77.

 
Disclaimer
 
The advice given by Kalkine Pty Ltd and provided on this website is general information only and it does not take into account your investment objectives, financial situation or needs. You should therefore consider whether the advice is appropriate to your investment objectives, financial situation and needs before acting upon it. You should seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice) as necessary before acting on any advice. Not all investments are appropriate for all people. Kalkine.com.au and associated pages are published by Kalkine Pty Ltd ABN 34 154 808 312 (Australian Financial Services License Number 425376). The information on this website has been prepared from a wide variety of sources, which Kalkine Pty Ltd, to the best of its knowledge and belief, considers accurate. You should make your own enquiries about any investments and we strongly suggest you seek advice before acting upon any recommendation. Kalkine Pty Ltd has made every effort to ensure the reliability of information contained in its newsletters and websites. All information represents our views at the date of publication and may change without notice. To the extent permitted by law, Kalkine Pty Ltd excludes all liability for any loss or damage arising from the use of this website and any information published (including any indirect or consequential loss, any data loss or data corruption). If the law prohibits this exclusion, Kalkine Pty Ltd hereby limits its liability, to the extent permitted by law to the resupply of services. There may be a product disclosure statement or other offer document for the securities and financial products we write about in Kalkine Reports. You should obtain a copy of the product disclosure statement or offer document before making any decision about whether to acquire the security or product. The link to our Terms & Conditions has been provided please go through them and also have a read of the Financial Services Guide. On the date of publishing this report (mentioned on the website), employees and/or associates of Kalkine Pty Ltd do not hold positions in any of the stocks covered on the website. These stocks can change any time and readers of the reports should not consider these stocks as advice or recommendations.