Vita Group Ltd


VTG Details

Renewed Agreement with Telstra till 2020: Vita Group Ltd (ASX: VTG) reported a 23% increase in revenue to $321.2 million during the first half of 2016 and a 46% rise in EBITDA to $30.4 million as compared to the corresponding period in 2015.
 

Vita group financial performance (Source: Company Reports)
 
The group has extended its partnership with Telstra Dealer and Master License Agreement till 31^st December 2020. The extension of this agreement would enable them to generate further revenue growth for four years until the agreement is again extended in 2020. VTG is a good dividend player and declared a 40% increase in the fully franked interim dividend to 5.76 cents. We give a “Hold” recommendation on the stock at the current price of $4.44
 

VTG Daily Chart (Source: Thomson Reuters)
 
Ardent Leisure Group


AAD Details

Sale process of the d’Albora Marinas delayed: Ardent Leisure Group (ASX: AAD) recently announced about distribution reinvestment plan price of AUD 1.9292 per stapled security for the period ended June 30, 2016. AAD has delayed its sale process of the d’Albora Marinas and intends to make certain capital improvements. On the other hand, the group is focusing on its core main event business, and forecasts to expand to over 27 centers by end of FY16, a 35% increase against fiscal year of 2015. With 24/7 conversion program for health clubs business, the group’s membership rose to over 8,300 members (for the entire first half of 2016). The group is targeting to tap further opportunity from Asia via Dreamworld. Ardent also has a good dividend yield and we give a “Buy” recommendation on the stock at the current price of $2.09
 

AAD Daily Chart (Source: Thomson Reuters)
 
AVJennings Ltd


AVJ Details

Growth in contracts: AVJennings Ltd (ASX: AVJ) recently responded to ASX with regard to its failure to lodge Appendix 3Y (in relation to rights allocated to Managing Director of the company) on time owing to many reasons and has put system in place to avoid any further delays in disclosure filings. AVJ had otherwise signed contracts of 999 lots in the first half 2016 and the company has reaffirmed signing contracts of 1800 to 2100 lots for FY 2016. Additionally, AVJ has also reaffirmed dividend payout ratio at 40%-50% of NPAT for FY16. Moreover, AVJ’s new $92 million project funding facility for ‘Waterline Place’ is approved.
 

Financial Result (Source: Company Reports)
 
The acquisition of the remaining 50% of interest in the Argyle project is expected to boost the AVJ’s revenue and margins in New South Wales for the second half while the activity in Melbourne is expected to further strengthen with new products - ‘Lyndarum’ and ‘Hazelcroft’. AVJ stock has risen 25.24% in the last three months (as of July 18, 2016), however, AVJ is still trading at a cheaper P/E. We give a “Buy” recommendation on the stock at the current price of $0.645
 

AVJ Daily Chart (Source: Thomson Reuters)
 
Lovisa Holdings Ltd


LOV Details

International Expansion: Lovisa Holdings Ltd (ASX: LOV) is completing its UK pilot program. The group reported that Brighton and Bromley are due to open by the end of FY2016 and LOV is considering franchise partners for selected territories. Meanwhile, LOV has reaffirmed the FY16 guidance of EBIT to be in the range of $23.5m - $25.5m, gross margins are forecasted to be around 74% and would be trading from 252 stores. LOV has pipeline of further store openings being sourced in the event of a successful pilot program. We give a “Buy” recommendation on the stock at the current price of $2.49
 

LOV Daily Chart (Source: Thomson Reuters)
 
Asaleo Care Ltd


AHY Details

Capital Management Initiatives: Asaleo Care Ltd (ASX: AHY) had done capital investment in upgraded Tissue manufacturing which had led to strong cash flows. Moreover, as a part of Capital Management initiative, AHY resorted to market share buy-back in October 2015 with the aim of purchasing of up to 10% of the company’s issued capital or up to $100m in a year. The company lodged ASIC Form 484 with regard to cancellation of shares given its share buy-back program. Additionally, AHY is expected to declare the dividend for the first half 2016 in August 2016 and to be paid in September 2016. Meanwhile, AHY has a strong dividend yield, while the stock has already risen 40.47% in the last six months (as of July 18, 2016). We give a “Hold” recommendation on the stock at the current price of $2.17
 

AHY Daily Chart (Source: Thomson Reuters)
 
Aventus Retail Property Fund


AVN Details

Portfolio Revaluation: Aventus Retail Property Fund (ASX: AVN) has reported that its 11 properties (59% of the Portfolio) have been revalued as at 30^th June 2016. This has led to a $63.0 million overall uplift for the Portfolio (adjusted to exclude development costs at Tuggerah, NSW) and a 9.34% increase on the prior values of these 11 properties as at 31^st December 2015. These valuations are subject to final audit and will be announced in the FY16 results.
 

Holdings as on 30^th June 2016 (Source: Company Reports)
 
Overall, the value of the portfolio has increased to $1.269 billion. Meanwhile, AVN has acquired a 55,840 square meter development site opposite Tuggerah Super Centre, NSW at $3.75 million which represents an attractive rate of $67 per square meter over the site area. Now the land holding in Tuggerah has increased from 71,570 square meters to 127,410 square meters. The stock has already risen 20.86% in the last six months (as of July 18, 2016). We give an “Expensive” recommendation on the stock at the current price of $2.40
 

AVN Daily Chart (Source: Thomson Reuters)
 
Appen Ltd


APX Details

Contract Renewal with Microsoft: Appen Ltd (ASX: APX) has renewed various contracts from Microsoft (a major customer) across multiple projects including in the Bing search division. These are expected to form Purchase Orders for the financial years 2016 and 2017. Moreover, the group is positioning for growth in high growth language technology and machine learning markets, as well as building strong global customer base from auto manufacturers and governments.
 

Solid recurring revenues (Source: Company Reports)
 
On the other hand, the stock has already risen 84.12% in the last three months (as of July 18, 2016) placing the stock at higher levels. The stock is trading at a higher P/E. We give an “Expensive” recommendation on the stock at the current price of $3.12
 

APX Daily Chart (Source: Thomson Reuters)

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