Cleanaway Waste Management Ltd

CWY Details

Cost cutting initiatives: Cleanaway Waste Management Ltd (ASX: CWY) reported an increase of statutory profit after tax to $23 million for the half year ended on December 2015, against the statutory loss after tax of $41.7 million for the prior corresponding period (pcp). This increase was mainly due to its realignment efforts off building a new operating model and single branding. The group reported a revenue rise of 8.3% on a yoy basis while the underlying EBITDA rose better by 12.6% yoy to $137.2 million during the period. CWY intends to cut over $30 million of costs by June 2017.
 

FY16 performance highlights (Source: Company Reports)
 
Accordingly, the stock surged over 19.08% (as of April 18, 2016) in the last three months driven by the group’s positive efforts. On the other hand, we believe that the heavy rally in the stock placed them at higher levels, which is trading at an unreasonable P/E. Accordingly, we give an “Expensive” recommendation on this stock at the current price of $0.775
 
 
CWY Daily Chart (Source: Thomson Reuters)
 

DEXUS Property Group

DXS Details

IOF rejected Dexus proposal: The shares of DEXUS Property Group (ASX: DXS) delivered returns of 9.61% (as of April 18, 2016) during this year to date on speculation of a possible consent from Investa Office Fund (IOF) regarding the group’s takeover proposal. On the other hand, IOF has finally rejected DEXUS Property Group’s proposal. Moreover, the group’s office Retention as forecast decreased to 56% during the first half of 2016, as compared to 61% in FY15 while Office occupancy also fell to 94.1% during the period against 95.3% as of June 2015. Given the ongoing tough market conditions in Australia, we believe that DXS stock would continue to face pressure in the coming months. Based on the foregoing, we give an “Expensive” recommendation at the current price of $8.05
 
 
DXS Daily Chart (Source: Thomson Reuters)
 

Ellex Medical Lasers Ltd

ELX Details

Boosting capital position: Ellex Medical Lasers Limited (ASX: ELX) is boosting its capital position and recently raised $5 million via placement of shares with Australian and New Zealand institutional investors. The group intends to use these funds to back its sales growth in lasers, ultrasound and iTrack, for expanding manufacturing facility at Mawson Lakes, South Australia as well as invest in revenues, marketing, regulatory and legal activities for iTrack sales growth and expansion efforts in Asia.
 

Sales by category of Eye Disease (Source: Company Reports)
 
The group also delivered a revenue rise of 13% to $34.8 million for the half year ended on December 2015 while the profit before tax improved by 36% to $1.8 million against the prior corresponding period. These positive developments drove the stock high in the last six months placing the stock at very high levels and unreasonable P/E. We give an “Expensive” recommendation at the current price of $0.81
 
 
ELX Daily Chart (Source: Thomson Reuters)
 

Aveo Group

AOG Details

Strengthening retirement portfolio: Aveo Group (ASX: AOG) recently reported that they were allotted 371 bed licenses during the 2015 Aged Care Approvals Round (ACAR), wherein the 371 licenses would be distributed to four villages in Queensland, NSW and VIC. The group is on track to deliver 922 aged care beds. Aveo has been building a strong retirement portfolio and currently has 89 communities across Australia while six communities construction are undergoing. As of first half of 2016, Aveo Group has a development pipeline of 387 units wherein five of them are in 15 existing villages. The group acquired Freedom for a $215.5 million plus acquisition costs. With this move, Aveo Group expanded its portfolio to 95 retirement communities having over 17,000 homes for elderly Australians. The company increased its interest in retirement villages group to 73%. AOG even delivered strong first half of 2016 performance, with statutory profit after tax rising by 121% to $66.5 million while underlying profit after tax rose by 89% to $45.6 million.
 

Retirement Asset Returns (Source: Company Reports)
 
As a result, the shares of Aveo Group rallied over 14.93% in the last six months (as of April 18, 2016). We believe the momentum in the stock would continue in the coming months and accordingly, place a “Hold” for this dividend yield stock at the current price of $3.39
 
 
AOG Daily Chart (Source: Thomson Reuters)
 

Mantra Group Ltd

MTR Details

New properties contribution drove performance: Mantra Group Ltd (ASX: MTR) reported a revenue increase of 21.7% to $307.4 million for the first half of 2016 against prior corresponding period (pcp). Underlying EBITDA rose by 26.1% on a yoy basis driven by nine new properties acquisitions contribution coupled with the better occupancy levels and average room rates and management efforts to control costs. Mantra is also maintaining a decent balance sheet and has an overall assets of $713 million. The stock is trading at higher valuations with an unreasonable P/E. Moreover, concerns over slowdown of economy impacting Australia’s outbound tourism dragged the stock lower by 14.91% (as of April 18, 2016) during this year to date. Based on the foregoing, we give an “Expensive” recommendation on this dividend yield stock at the current price of  $4.25
 
 
MTR Daily Chart (Source: Thomson Reuters)
 

Astro Japan Property Group Ltd  

AJA Details
Boosting cash flow: Astro Japan Property Group (ASX: AJA) recently sold its office property at Yamashitacho for over ¥2.1 billion or A$25.9 million from its 30 property portfolio. This asset accounted over 2.4% of its book value while the group diverted these funds to repay over ¥1.24 billion of debt principal. As a result, the group has over $59 million of cash which represents over 14% of the group’s net tangible assets (NTA) as of December 2015. From this 29 property portfolio, AJA also sold Sapporo Co-op for AUD 12.9 million. The stock surged over 23.92.6% in the last three months (as of April 18, 2016). We believe that the stock is “Expensive” at the current price of  $6.26
 
 
AJA Daily Chart (Source: Thomson Reuters) 

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