Stocks’ Details

Platinum Asset Management Limited (ASX: PTM)

Improvement in Funds under Management: Platinum Asset Management Limited is the ultimate holding company of Platinum Investment Management Limited, trading as Platinum Asset Management, a Sydney-based fund manager specialising in investing in global equities. The Funds Under Management (FUM) increased from $27,245.9 million as on 31 March 2018 to $28,001.0 million as on 30 April 2018. 636,428 Deferred Rights were issued under the Platinum Asset Management Limited Deferred Bonus Plan (Plan) to receive an equivalent number of the Company’s shares. As part of Platinum Asset Management Limited’s director renewal programme, the Company appointed Ms Brigitte Smith as a non-executive director of the Company. Andrew Clifford, Co-founder and Chief Investment Officer, will be appointed as the CEO of the Company. Expenses were generally well controlled, while there was a 14% increase in non-staff costs mostly attributable to product development and marketing related initiatives.


Net Inflows (Source: Company Reports)

The Group reported Net inflows of $0.9 billion for the period (6 months to December 2017), led by Platinum Trust Funds and were supported by new and overseas products. It was seen that adviser engagement with key dealerships increased. The business is well placed and has a strong position in Australian retail market and is underpinned by a clear client proposition. However, the funds under management have been otherwise under slight pressure in the past few months. The stock price was down by 28.9 per cent in the last three months, followed by a jump of 8.5 per cent as on 8 May 2018. However, it looks slightly “Expensive” at the current market price of $6.08.
 

Eclipx Group Limited (ASX: ECX)

Strong Growth in Business volumes: Eclipx Group Limited released its half-yearly results ending on 31 March 2018 and reported a 39% increase in Net Operating Income (NOI-$159.3 million) and Net Profit After Tax & Amortisation ($38.5 million) was up by 23% as compared to the same period in the prior year and reaffirmed its full-year guidance. Interim dividend per share was up by 7 per cent (0.5c) and amounted to 8.0c, fully franked. Cash earnings per share were up by 4 per cent and amounted to 12.3c for 1HFY18 with 10-12 per cent for FY18 guidance reaffirmed. In particular, Graysonline delivered a pleasing result in the first half with the business now refocussed to target profitable channels and asset categories in Industrial and Auto. Total sales for Industrial and Auto increased by 13 per cent on a like for like basis.


Auto sales and Grays sales Performance (Source: Company Reports)

Service Revenue from Grays and Right2Drive contributed to 38 per cent of ECX NOI in 1HFY8. Margins were in line with its expectations and cost to income ratio was dropping as planned. The Group expects continuation of positive economic conditions in Australia and New Zealand as it invests in new business and technology initiatives. It reaffirmed its full year guidance for 27 per cent to 30 per cent growth in NPATA and 10 per cent to 12 per cent growth in Cash EPS. Eclipx has a proven track record of leveraging its core competencies including risk management, treasury and digital technology to provide innovative solutions to customers. The Group generated significant free cashflows of $35.2 million which were invested in growth related software initiatives and payment of dividends.  Since balance date, ECX has also received a credit approved term sheet for the private placement of up to cAUD100 million in bonds to a large US global fund manager (delivered in AUD hedged with no exchange or interest rate risk). The stock was down by 8.45 per cent in the past three months, followed by a rise of 4 per cent in the last five days. Just after the release of the financials, the stock initially rallied high but ended with a fall of 4.5 per cent on May 08, 2018, which looks to be owing to some volatility or selling of shares with slight concerns on margins. However, given the potential, we maintain a “Buy” at the current market price of $3.21.

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