Kalkine has a fully transformed New Avatar.
As per the latest data from the Australian Bureau of Statistics, short-term visitor arrivals (704,900 movements) slipped by 0.7% in November 2016 compared with October 2016 (710,200 movements). This followed monthly increases of 2.4% in September 2016 and 0.2% in October 2016. Amidst this movement, let us look at these seven tourism and entertainment stocks -
Mantra Group Ltd
MTR Details
Strong bottom line in FY 16: Mantra Group Ltd (ASX: MTR) in FY 16 reported an underlying EBITDAI rise of 23% year on year (yoy) to $89.8 million on track with their market guidance (excluding transaction costs of $7.3 million incurred in respect of acquisitions). The underlying NPAT of $43.8 million exceeded the guidance of $40 million -$42 million, up $7.6 million on FY2015. FY16 statutory NPAT was $37.1 million, up $1.0 million on FY2015. Overall revenue increased by 21.5% to $606.1 million. Eleven hotels were added to the network in FY16 and Ala Moana got added in July 2016.
FY 16 Financial Performance (Source: Company Reports)
In FY 17 MTR forecasts the EBITDAI, NPAT and NPATA to be between $101.0 million - $107.0 million, $48.5 million - $52.5 million and $51.0 million - $55.5 million, respectively. Meanwhile, MTR stock has a decent dividend yield while we give a “Buy” recommendation on the stock at the current price of – $ 3.05
MTR Daily Chart (Source: Thomson Reuters)
Star Entertainment Group Ltd
SGR Details
Uncertainty in China: Star Entertainment Group Ltd (ASX: SGR) stock has fallen 13.60% in the last three months as on January 13, 2017. The group reported 12.8% growth in revenues from July to October 2016 against same period of previous year while normalized revenue was down 2%. SGR was granted a new casino license by the Queensland Government, under which the casino operations are permitted to start after finishing the Integrated Resort at Queen’s Wharf Brisbane. The casino license was said to be issued to a joint venture entity (Destination Brisbane Consortium) of which The Star Entertainment Group has a 50% interest by making a payment of $213 million to the Queensland Government. On another note, the company gave the clarification regarding the issue that Crown had 18 people detained by Chinese authorities. SGR said that they do not have any information as to why or for how long those Crown employees, and others, would be detained. SGR further mentioned that they don’t have any offices in mainland China but the overall situation in China has been said to be uncertain as per the group. SGR stock has a high P/E while we give an “Expensive” recommendation on the stock at the current price of – $ 5.10
SGR Daily Chart (Source: Thomson Reuters)
Ardent Leisure Group
AAD Details
Opening of Australia’s first LEGO Certified Store: Ardent Leisure Group (ASX: AAD) stock has risen 15.68% in the last six months as on January 13, 2017 and the momentum in the stock is expected to continue. AAD’s Whitewater World Water Park and Dreamworld theme park were re?opened to guests from December 2016 after the successful completion of the mechanical and operational safety review. The unaudited revenue for Themes Parks Division from re-opening to December 31, 2016, was $3.66 million, a 63% drop over previous corresponding period. Moreover, Australia’s first LEGO Certified Store, the largest retail outlet is also scheduled to open at Dreamworld by the end of January 2017. AAD’s Main Event Business reported for unaudited revenue growth of 35.2% from July to December 2016 over prior corresponding period. We give a “Hold” recommendation on the stock at the current price of – $ 2.23
AAD Daily Chart (Source: Thomson Reuters)
Crown Resorts Ltd
CWN Details
Legal decision in favor of CWN: Crown Resorts Ltd (ASX: CWN) announced John Alexander being appointed as Chairman. CWN also stated that Land and Environment Court of NSW has dismissed the legal challenge brought by the Millers Point Fund Incorporated, as an applicant. Millers had challenged the validity of the decision of the NSW Planning Assessment Commission (PAC) to approve the applications for the modification of the approved concept plan for Barangaroo and for the construction of the Crown Sydney Hotel Resort at Barangaroo South. Moreover, CWN is continuing to construct Crown Sydney and expects this to finish by 2021. We give a “Hold” recommendation on the stock at the current price of – $ 11.78
CWN Daily Chart (Source: Thomson Reuters)
Aristocrat Leisure Limited
ALL Details
Market share growth across the US premium gaming operations: Aristocrat Leisure Limited (ASX: ALL) in FY 16 has reported a 68.7% growth in the NPATA result of $398.2 million. ALL has posted a significant market share growth across the US premium gaming operations segment and outright sales segments in the US, Australia and Asia Pacific, on the back of rising average fee per day and average selling price. ALL’s Digital segment also performed well. ALL has reported a 34.5% growth in the total revenue in reported terms to a record of over $2 billion, and the EBITDA has grown over 54% in reported terms in FY 16 against prior corresponding period.
FY16 Revenue and Licensed Jurisdictions (Source: Company Reports)
On the other hand, CEO & Managing Director Jamie Odell will leave the company in February 2017 and ALL has appointed Trevor Croker as CEO (Elect), raising concerns over the management’s stability. The stock has a low dividend yield and has a high P/E. We give an “Expensive” recommendation on the stock at the current price of – $ 15.63
ALL Daily Chart (Source: Thomson Reuters)
Apollo Tourism & Leisure Ltd
ATL Details
Revenue growth expected for FY17: Apollo Tourism & Leisure Ltd (ASX: ATL) has been admitted to the Official List of ASX Limited in November 2016. ATL stock has fallen 1.89% since its listing as on January 13, 2017. On the other hand, concerns persist over the group’s growth potential given the competition. The group has forecasted $183.0 million as its FY17 pro forma consolidated revenue over $155.8 million of FY16. The annualized forecast FY17 dividend yield is 3.75%. We give an “Expensive” recommendation on the stock at the current price of – $ 1.31
ATL Daily Chart (Source: Thomson Reuters)
SeaLink Travel Group Ltd
SLK Details
Acquisitions supporting growth in underlying NPAT: SeaLink Travel Group Ltd (ASX: SLK) stock has risen 6.51% in the last six months as on January 13, 2017 as the company in FY 16 reported 141% increase in underlying NPAT from $9.6 million to $23.1 million before the expenses related to acquisitions. The growth is due to the acquisition of the Gladstone and South East Queensland, and organic growth in pre-acquisition businesses. The underlying basic earnings per share of 24.4 cents indicated a 94% increase on 2015 earnings per share of 12.6 cents. The revenue grew by 5.4% from $111.7m to $117.8m for the pre-acquisition business units. The key drivers for this being higher tourism sales for Captain Cook Cruises NSW, growth in SeaLink’s Kangaroo Island ferry and tour operations, and new ferry route services and increased Hop-On Hop-Off sales on Sydney Harbour.
FY 16 Financial Performance (Source: Company Reports)
SLK expects FY 2017 EBIT from its Gladstone operations to be about $2.0m lower than FY 2016 due to the continuing transition from construction to operational phase of the LNG plants, which is expected to be finished by March 2017. We give a “Hold” recommendation on the stock at the current price of – $ 4.55
SLK Daily Chart (Source: Thomson Reuters)
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 currently hold positions in: BHP, BKY, KCN, PDN, and RIO. These stocks can change any time and readers of the reports should not consider these stocks as advice or recommendations.