Spark Infrastructure Group

SKI Details
Dividend as per FY 16 guidance: Spark Infrastructure Group (ASX: SKI) has recently reaffirmed medium term distribution guidance, but had earlier reported that their underlying profit before loan note interest and tax for the first half 2016 has fallen by 9.4% to $127.2 million as compared to the corresponding period 2015.

 

Distribution Guidance (Source: Company Reports)
 
However, SKI has posted a decent 31.6% growth in the statutory net profit after tax to $51.6 million during the period and has declared the interim distribution of 7.25cps, which is in line with the FY 2016 guidance of 14.5cps. The group has also divested economic interests in DUET group. Trading at a decent dividend yield, we give a “Buy” recommendation on the stock at the current price of $ 2.17

 
SKI Daily Chart (Source: Thomson Reuters) 

HFA Holdings Limited

HFA Details
Slight rise in operating income: HFA Holdings Limited (ASX: HFA) reported a 1% increase in the operating income to $64.43 million in FY 16 but a 90% fall in the profit after tax to $14.11 million.

 

AUMA update (Source: Company Reports)
 
The stock has been under pressure this year which lost over 22.9% this year (as of October 21, 2016). On the other hand, the heavy fall in the stock placed them at reasonable valuations which is having a decent dividend yield. The company will hold its AGM on October 26, 2016. We give a “Speculative Buy” recommendation on the stock at the current price of $ 2.23 

 
HFA Daily Chart (Source: Thomson Reuters) 

WPP Aunz Ltd

WPP Details
Flat result of 1H 2016 but positive full year outlook:  WPP Aunz Ltd (ASX: WPP) reported a net sales of $407.3 million in the 1H 2016, which is flat on the prior period and the profit before interest and tax of $47.2 million is in line with the prior period. The group maintained its dividend per share to 2.1 cents. The group has witnessed tough trading conditions across Australia and New Zealand. However, the group reported for strong operating cash flow exceeding the EBITDA cash conversion target. Despite few challenges, the full year outlook now entails PBIT between $140 million and $147 million against $137 million of 2015.

 

1H 2016 Financial Performance (Source: Company Reports)
 
Moreover, WPP merged with the Australia and New Zealand businesses of WPP plc, and got an approval from the shareholders. We give a “Hold” recommendation on the stock at the current price of $ 0.89

 
WPP Daily Chart (Source: Thomson Reuters) 

Villa World Ltd

VLW Details
Positive FY17 outlook: Villa World Ltd (ASX: VLW) has reported for three consecutive years of double digit profit growth and has made strategic project site acquisitions. In FY17, the group has added 1100 lots to the portfolio up till now. VLW is targeting FY17 statutory profit after tax growth of at least 5% to $35.4 million and intends to pay at least 18 cents per share fully franked dividend in FY17. The group has also lately resolved the Silverstone litigation among all parties for the resolution of the proceedings. The agreement was formally documented, and the Court has approved the settlement on September 29, 2016. Meanwhile, VLW stock rose 6.07% in six months (as of October 21, 2016), while has a decent dividend yield and is trading at reasonable P/E.  We maintain a “Hold” recommendation on the stock at the current price of $ 2.32

 
VLW Daily Chart (Source: Thomson Reuters) 

Astro Japan Property Group Ltd

AJA Details
Sale of smallest office property: Astro Japan Property Group Ltd (ASX: AJA) has sold the smallest office property in its 29 property portfolio, Sun No.5, at ¥487 million (A$6.3 million approx. at A$1=¥77) to pay the debt. The asset is said to represent about 0.6% of AJA's portfolio by book value as at June 30, 2016. The group will conduct its AGM on November 09, 2016. Given the potential and current trading conditions, we maintain an “Expensive” recommendation on the stock at the current price of $ 6.75

 
AJA Daily Chart (Source: Thomson Reuters) 

GDI Property Group Ltd

GDI Details
Sale of 80 George Street: GDI Property Group Ltd (ASX: GDI) has announced that GDI No. 40 Pty Limited atf GDI No. 40 Office Trust has exchanged contracts to sell 80 George Street, Parramatta for $51.88 million, and the settlement is scheduled for the late January 2017. The sale price reflects a 34% gross premium. The group otherwise reported an increase of $2.7 million to $49.1 million in Funds from operations for FY16. GDI stock rose 15.29% in last six months (as of October 21, 2016). The group will conduct its AGM on November 10, 2016. We give a “Speculative Buy” recommendation on the stock at the current price of $ 0.97

 
GDI Daily Chart (Source: Thomson Reuters)

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