Villa World Ltd

VLW Dividend Details
 
Growth through acquisitions:Recently, Villa World Ltd (ASX: VLW) announced that it has agreed to purchase a site at Logan reserve, located south of Brisbane, comprising seven adjoining parcels for a total purchase price of around $32 million with progressive settlements scheduled to occur during the second half of financial year 2016. The company further added that the acquisition will be funded via its present debt facilities and working capital and it will be a part of the company's financial year 2016 acquisition spending which is estimated to be around $145 million to $160 million. The development is forecasted to commence contributing to revenue during financial year 2017. This acquisition combined with recent acquisitions in Strathpine and Arundel, will provide product continuity to the group’s core markets. The company has also recently revised and upgraded its profit guidance to $32.6 million (FY15: $25.6 million). VLW also has a strong dividend yield. We believe the stock has the momentum to rise higher in the coming months and accordingly give a "Speculative Buy" at the current price of $1.995
 
 
VLW Daily Chart (Source: Thomson Reuters)
 

WAM Capital Ltd

WAM Dividend Details
 
Rising operating profit growth: WAM Capital Ltd (ASX: WAM) reported a 248.5% increase in operating profit before tax to $103 million for the half year to December 31, 2015. WAM Capital's investment portfolio also increased 16.5% for the same period compared to 6.4% increase in the previous corresponding period (pcp) driving the growth in profit higher. This performance is better than the S&P/ASX All Ordinaries Accumulation Index rise of 0.4% and close to the S&P/ASX Small Ordinaries Accumulation Index increase of 7% over the same period.
 


Rising Dividends (Source: Company reports)
 
The firm declared a fully franked interim dividend of 7.25 cents per share, an increase of 3.6% on the pcp. Given the decline in equity markets owing to volatile economic growth and slowdown in China, WAM’s January 2016 investment portfolio dropped to -2.5% while outperforming the S&P/ASX All Ordinaries Accumulation Index by 2.9% and by 10.4% since inception. With a high dividend yield, we rate the stock a “BUY” at the current price of  $2.14
 
 
WAM Daily Chart (Source: Thomson Reuters)
 

Kathmandu Holdings Ltd

KMD Dividend Details
 
Positive Profit Guidance: For the half year (1H16) ended on January 31, 2016, Kathmandu Holdings Ltd (ASX: KMD) declared that its total sales is expected to be around $195.7 million against $179.4 million for the same period a year ago. Same store sales growth for the period is 3.8% on a constant currency basis while gross margin improved on last year by 360 basis points.
 


Increasing footprint expansion (Source: Company reports)
 
For the first half, EBITDA is estimated to be in the range of $21 to $22 million against $6.8 million in the year ago, while net profit after tax is forecasted between $8.5 and $9.5 million compared to the previous year loss of $1.8 million. Management estimates to derive over 55% of sales in the second half of the financial year with 65% - 70% of earnings. We recommend investors to “BUY” this dividend yield stock at the current share price of  $1.37
 
 
KMD Daily Chart (Source: Thomson Reuters)
 

Mantra Group Ltd

MTR Dividend Details
 
Building pipeline for long term:Mantra Group Ltd (ASX: MTR) management reiterated that they are on track to achieve financial year 2016 EBITDA of $84 to $87 million. The company also reported a strong performance in FY15 with revenues up 9.7% over FY14. Strategic pipeline growth continues to be a key focus for the group, which added 11 properties in 2015 across its three brands.  Recently, MTR won a competitive tender process to operate the latest on-airport hotel being developed by Sydney Airport Corporation.

 

Financial overview (Source: Company reports)
 
Also, Mantra announced an innovative collaboration with Australia’s modular hotel pioneer, Tribe Hotel Group, to operate its inaugural hotel in Walker Avenue, West Perth. The partnership will see the group manage the hotel under the new Tribe brand when it opens in December 2016. Despite having a strong pipeline, we believe that the stock is trading at a higher P/E ratio, and hence place an "Expensive" recommendation at the current share price of  $4.15
 
 
MTR Daily Chart (Source: Thomson Reuters)
 

Bellamy's Australia Ltd

BAL Dividend Details
 
Forecasting a strong second half:Bellamy's Australia Ltd (ASX: BAL) reported that they expect a better revenue growth in second half of 2016 against first half of 2016 as they contracted for additional formula volumes to be supplied to the company through the second half of FY16 and beyond.  Additionally, post BAL's recent Fonterra manufacturing agreement, the company expects first deliveries from Fonterra to take place in late FY16. Thus, the company expects to have the benefit of additional volumes being realized in FY17.

 

Strong financials (Source: Company reports)
 
However, BAL stock surged more than 509.82% (as of February 11, 2016) in the last one year placing the stock at an overbought zone. Hence, we rate the stock as "Expensive" at the current share price of  $11.21
 
 
BAL Daily Chart (Source: Thomson Reuters)
 

Surfstitch Group Ltd

SRF Details
 
Guidance reaffirmed: Surfstitch Group Ltd (ASX: SRF) has recently advised about the release of 18,656,285 fully paid ordinary shares from the voluntary escrow on February 29, 2016. SRF towards to the end of last year updated about the completion of its previously announced acquisition of SHI Holdings Pty Ltd and, in accordance with the terms of the acquisition agreement, the group acquired 100% of the share for an enterprise value of $ 23.7 million paid in cash. The company reaffirmed FY 2016 EBITDA guidance, including the contribution of SHI, of $ 18 million - $ 22 million on a full-year pro-forma basis. We believe that the company has a good potential for profitability and accordingly rate the stock as a “BUY” at the current price of  $1.64
 
 
SRF Daily Chart (Source: Thomson Reuters)
 

BWX Ltd

BWX Details
 
Well positioned to continue to deliver strong performance:BWX Ltd (ASX: BWX) recently reported a positive first half of 2016 revenue of $27.6 million, an increase of 25.5% against pcp. EBITDA rose 53.1% to $9.8 million, while net profit after tax was up 61.5% to $6.3 million for the same period.  Looking ahead to full financial year 2016, revenue is estimated at $53.6 million indicating an 18.8% increase from pro-forma financial year 2015, driven by ongoing growth in the sales of Sukin product.

 

Financial Performance (Source: Company reports)
 
Despite its positive guidance, BWX surged over 95.13% (as of February 11, 2016) since its listing in ASX placing the stock at higher valuations. Accordingly, we place an "Expensive" recommendation on BWX at the current price of  $4.38
 
 
BWX Daily Chart (Source: Thomson Reuters)
 

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