Credit Corp Group Ltd

CCP Details

Acquired Cashfirst from Thorn Group and upgraded FY18 guidance:Credit Corp Group Ltd (ASX: CCP) has acquired Cashfirst branded consumer loan book and associated assets from Thorn Group Limited for a total consideration of $13.3m. CCP has also planned to acquire other assets including the historical customer database and all the Cashfirst branding and intellectual property. The transactions are expected to positively impact earnings in fiscal years 2018 and 2019.
 

Updated FY18 guidance (Source: Company Reports)
 
Moreover, CCP continues to see attractive debt purchasing opportunities for its profitable US business. The pipeline of committed US purchasing currently exceeds the upper end of its previous guidance of $55m. As a result of the Cashfirst acquisition and additional US purchasing, CCP has upgraded its investment and Net Profit after Tax guidance for FY 18. CCP expects FY18 NPAT in the range of $62 - $64m, up from the initial guidance of $60 - $63m, announced in August 2017. Meanwhile, CCP stock has risen 23.57% in three months as on November 23, 2017, and has a slightly high forward price to earnings ratio. We give an “Expensive” recommendation on the stock at the current price of $22.45



CCP Daily Chart (Source: Thomson Reuters)
 

Domino's Pizza Enterprises Ltd

DMP Details

Reaffirmed underlying NPAT growth for FY18: Domino's Pizza Enterprises Ltd (ASX: DMP) has recently reported result for the first 17 weeks of trading of FY18. The group’s Same Store Sales (SSS) have increased 5.03% on the prior corresponding period (pcp) due to the high-quality food offered and reduction of customer friction at every point. Specifically, Australia/New Zealand region has posted 4.45% SSS growth, Japan has posted 0.12% SSS growth and Europe has posted 8.48% SSS growth on the pcp in the first 17 weeks of trading of FY18. Moreover, DMP for FY 18 has upgraded the Same Store Sales growth guidance for Europe to +6-8% (up from +5-7%) as the company has rectified some issues in Europe that impacted growth in the past Financial Year. For FY18, DMP is projecting Same Store Sales growth of +7-9% in Australia/New Zealand, and expects growth in the second half to be approximately twice that recorded in the first half. In Japan, 0-2% Same Store Sales Growth is expected for the FY18, and this is to be predominantly reflected in the second half. Additionally, the company has reaffirmed underlying NPAT growth to be in the region of 20% for FY18. DMP has updated shareholders that the Court of Appeal in France had upheld a decision in favor of Domino’s Pizza France, regarding a legal action with Speed Rabbit. Meanwhile, DMP stock has risen 6.79% in three months as on November 23, 2017 and is trading at a high level. We believe that the stock is “Expensive” at the current price of $46.64



DMP Daily Chart (Source: Thomson Reuters)
 

BWX Ltd

BWX Details

Acquired Andalou Naturals and raised funds:Skin and hair care product company, BWX Ltd (ASX: BWX) has completed the acquisition of Andalou Naturals, Inc. for US$80m plus potential additional amounts subject to Andalou Naturals achieving particular financial milestones related to gross profit. From the acquisition, BWX expects FY18 revenue of US$41m and the pro forma forecast EBITDA of US$8.5m. The acquisition of Andalou Naturals has created a sizeable US operating platform when combined with Mineral Fusion, and enables the management to drive operating efficiencies. Moreover, BWX has raised gross proceeds of approximately A$100 million through a recent entitlement offer. Meanwhile, BWX stock has fallen 3.14% in one month but has risen 23% in last three months, as on November 23, 2017. As of now and looking at trading scenario, we give a “Hold” recommendation on the stock at the current price of $6.19



BWX Daily Chart (Source: Thomson Reuters)
 

Webjet Ltd

WEB Details

Announced FY18 Guidance and restructuring of WebBeds B2B management team:Webjet Ltd (ASX: WEB) has announced FY18 Guidance and is on track to deliver $3 billion TTV and $80 million EBITDA. The company in FY17 had achieved TTV of $1.95 billion and EBITDA of $51.0 million for the continuing operations. Moreover, WEB is restructuring its WebBeds B2B management team, to tap global growth opportunities. Under the proposed restructure, the team will be reorganized into 3 geographic regions (WebBeds Europe, WebBeds Asia and WebBeds Middle East, Africa and the Americas (MEAA)) rather than alignment to brands as they are currently. In addition, a new key strategic WebBeds Global role has been created to identify and boost revenue synergies and cost efficiencies across the regions. However, the group signaled to report for a negative cash flow in the first half of FY18 at the back of one-off acquisition cost from buying JacTravel. This led WEB stock stumble by about 18% in last five days as on November 23, 2017. We give an “Expensive” recommendation on the stock at the current price of $9.48



WEB Daily Chart (Source: Thomson Reuters)

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