Infigen Energy Ltd

Strong Performance in 1H FY 18: Infigen Energy Ltd (ASX: IFN) stock surged 9.9% on February 19, 2018 after the company reported $5.3 million increase in the net profit after tax to $26.7 million for 1H FY 18. The company has successfully implemented the transition to the new fleet-wide operations and maintenance (O&M) agreement with Vestas. Further, the construction of the Bodangora Wind Farm is on budget as well as on track to start commercial operations in Q1 FY19. Moreover, for FY 18, the expected portfolio-wide price range is $133-139/MWh with a slight bias towards the upper end of the range. The group also bagged a $525 million debt deal with Goldman Sachs and has lowered its total debt from $3.3bn in 2008 to $570m at the end of last financial year. Meanwhile, IFN stock has fallen 9.70% in three months as on February 16, 2018 and is trading at a reasonable P/E. We give a “Buy” recommendation on the stock at the current price of $0.665
 

GWA Group Ltd

Expects EBIT in the second half for FY18 to be similar to the 1H FY18:GWA Group Ltd (ASX: GWA) surged 11.4 % on February 19, 2018 after the company has posted 7% rise in the net profit after tax to $27.7 million in 1H FY 18. Further, the company delivered revenue growth ahead of the market with net sales up 2%, EBIT growth of 6% and also an expansion of group margin and the return on capital employed. Additionally, the company has planned to divest Door & Access Systems business after the strategic review. The sale process is expected to take approximately six months. Further, GWA expects EBIT in the second half for FY18 to be similar to the first half of FY18. Looking at the trading levels, we give an “Expensive” recommendation on the stock at the current price of $3.03
 

Beach Energy Ltd

Increased the FY 18 guidance of Cooper Basin production:Beach Energy Ltd (ASX: BPT) stock rose 7.12% on February 19, 2018 after the company posted 45% increase in the gross profit and 13% increase in the operating cash flow for 1H FY 18. Higher oil and gas prices in H1 FY18 have contributed to a 12% increase in sales revenue to $385.9 million. However, the NPAT for the period attributable to members fell 7%. On the other hand, the company has increased the FY 18 guidance of Cooper Basin production to 10.6 – 11.0 MMboe (from 10.0 – 10.6 MMboe). We give an “Expensive” recommendation on the stock at the current price of $1.355, in view of the recent run-up.
 

NPAT Drivers (Source: Company Reports)
 

InvoCare Ltd

Single digit operating EBITDA rise: InvoCare Ltd.’s (ASX: IVC) stock fell 7.5% on February 19, 2018 while the group’s full year (ended 31 December 2017) operating earnings after tax, which excludes asset sales, asset impairments, the impact of undelivered prepaid contracts and non-controlling interests, rose by 10.6% or $6.1 million to $63.5 million, up from $57.4 million. Operating cost controls and growth in sales led the operating EBITDA move up 7.8%. IVC’s statutory profit after tax of $97.4 million was up 37.3% at the back of higher returns from the pre-paid funds under management (FUM). However, the single digit operating EBITDA growth and lower than expected operating EPS seem to be impacting the stock. We give an “Expensive” recommendation on the stock at the current price of $14.30
 

NIB Holdings Ltd

8.9% growth in group revenue in 1H FY 18: NIB Holdings Ltd (ASX: NHF) stock rose 2.64% on February 19, 2018 after the company reported 8.9% growth in group revenue to $1.1 billion and 1.3% growth in the underlying operating profit (UOP) to $96.4 million for 1H FY 18. However, the group net profit after tax fell 0.3% to $70.9 million due to the one-off costs associated with GU Health acquisition in October 2017. Meanwhile, for FY 18, NHF expects UOP to be at least $165 million (versus previous estimate of at least $155 million) with statutory profit of at least $148 million. We give an “Expensive” recommendation on the stock at the current price of $6.60, in view of the high trading level.
 

FY 18 Guidance (source: Company Reports)
 

oOh! Media Ltd

Double digit profit growth in CY 2017:oOh! Media Ltd (ASX: OML) stock rose 4.53% on February 19, 2018 after the company reported 13.1% growth in the revenue to $380.3m, 22.5% increase in the underlying EBITDA to $90.1m and Net Profit rise of 35.5% to $33.1 million for CY 2017. Moreover, for CY 2018, OML expects EBITDA to be in the range of $94m-$99m while capex will be in the range of $30.0 - $40.0m. OML stock is trading at a very high P/E and looks “Expensive” at the current price of $4.62

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