Altura Mining Ltd

 
AJM Details
Signed Letter Agreement with Kairos Minerals: Altura Mining Ltd (ASX: AJM) entered into an agreement with Kairos Minerals to explore for lithium at Kairos’ Wodgina East Project (Kairos’ Wodgina East tenements comprising E45/4780 and E45/4715) for a five-years’ period. AJM may choose to buy a 75% interest in the Wodgina East tenements for a total of $1.25 million over 5 years, or at any time in that 5-year period by paying $1.25 million less the cost of any exploration or mining expenditure undertaken by AJM on the tenements. The group has announced that settlement of the first tranche of the share placement with Shaanxi J&R Optimum Energy Co. Ltd has been delayed due to regulatory issues in China and is now expected in January 2017. We give a “Buy” recommendation on the stock at the current price of – $ 0.135

 
AJM Daily Chart (Source: Thomson Reuters)

 Amaysim Australia Ltd

 

AYS Details
Launching the broadband early in the CY 2017: Amaysim Australia Ltd (ASX: AYS) is going to launch the broadband early in the 2017 calendar year, to leverage the ‘forced migration’ event presented by the roll-out of the National Broadband Network (NBN) across Australia.

 

Financial Performance for FY 16 (Source: Company Reports)
 
In FY17, AYS expects its core mobile business to grow organically by adding about 58,000 to 60,000 net mobile subscribers in the first half of FY17. This growth is expected to drive low-double digit net revenue growth in FY17. We give a “Buy” recommendation on the stock at the current price of – $ 1.99

 
AYS Daily Chart (Source: Thomson Reuters) 

Australia and New Zealand Banking Group Ltd

 

ANZ Details
Reshaping of business: Australia and New Zealand Banking Group Ltd (ASX: ANZ) delivered a good performance in FY 16 in the core domestic franchises while reshaped their business. ANZ entered into an agreement with DBS to sell the retail and wealth businesses in Singapore, Hong Kong, China, Taiwan and Indonesia. The APRA CET1 capital ratio at 30 September 2016 was 9.6% for the group. Organic capital generation of 106 basis points in the second half was 33 basis points higher than the second half average of the past 4 years at the back of Credit RWA reduction of $12 billion in the Institutional business. ANZ is gradually consolidating to its historical payout range of 60-65% of annual cash profit in order to provide a more sustainable base. The group lately informed about removal of CPS2 from official quotation. ANZ stock has risen 26.12% (as of 30 December 2016) in the last six months and has a solid dividend yield. Trading at a reasonable P/E, we give a “Buy” recommendation on the stock at the current price of – $ 30.42

 
ANZ Daily Chart (Source: Thomson Reuters) 

Australian Agricultural Company Ltd

 

AAC Details
Production cost reduction in 1H FY 17: Australian Agricultural Company Ltd (ASX: AAC) in the first half of FY 17 has reported a net profit after tax of $47.9 million, which is a $1.9 million fall against the previous corresponding period. The sales revenue fell by $46.6 million to $214.1 million in the first half of FY 17 on the back of rising wagyu days on feed which had limited wagyu product available for sale and reduction of non-wagyu and live cattle sales. However, the revenue reductions were partially offset by the improved pricing of the wagyu products as well as higher sales from Livingstone Beef.

 

Financial Performance for 1H FY 17 (Source: Company Reports)
 
Moreover, AAC has reported a 25% reduction in production costs as the company got advantage of the strong seasonal conditions. Moreover, AAC is cutting the operational costs under its strategic decision to own cattle right through the supply chain. AAC improved margin due to the reduction in the production cost. The stock has risen 27.4% this year to date (as on 30 December 2016) and is trading at a reasonable P/E. We give a “Buy” recommendation on the stock at the current price of – $ 1.69

 
AAC Daily Chart (Source: Thomson Reuters) 

Donaco International Ltd

 

DNA Details
DNA Star Vegas acquisition drove the financial performance in 2016: Donaco International Ltd (ASX: DNA) had successfully integrated the newly acquired DNA Star Vegas in Poipet in FY 16, situated on the Thailand and Cambodian border. This acquisition led to a seven-fold increase in the group revenues. Moreover, in FY16 there has been improvement in the performance of the Aristo International Hotel, in Lao Cai in Vietnam, on the back of solid growth in both gaming and non-gaming revenue. Meanwhile, DNA in FY 16 has reported a group revenue of A$143.4 million up from A$20.4 million. This strong performance includes revenue from Star Vegas of A$120.1 million and the Aristo’s revenue of A$23.2 million, which has grown 36% as compared to FY 15. DNA in FY 16 has posted the reported NPAT of A$77.2 million, against a loss of A$2.9 million in FY15. The NPAT includes the valuation uplift of A$55.2 million for Star Vegas, A$20.5 million management fee payable to the venue manager due to the strong performance of Star Vegas and A$11.8 million of non-recurring M&A costs for acquisition of Star Vegas. The group reported that first four months of FY17 witnessed a solid VIP win rate of 2.87% for DNA Star Vegas although this was lower than 3.3% win rate of corresponding period in FY16. Overall, the current financial year till October has seen mixed results with strong start from Aristo but lower than expected results from DNA Star Vegas. The group expects strong June half for FY17 as seen in previous years at the back of benefits from holiday period. Trading at a very cheap P/E, we give a “Buy” recommendation on the stock at the current price of – $ 0.36

 
DNA Daily Chart (Source: Thomson Reuters) 

Empired Ltd

EPD Details
Positive outlook: Empired Ltd (ASX: EPD) expects the EBITDA to be between $6.0m and $6.8m for the first half of FY17 as compared to $0.8m H1 FY16. The EBITDA in the second half is expected to be stronger than the first half. But, the New Zealand operations have been disrupted due to the earthquake and there is an estimated impact of $0.4m EBITDA in the half of FY 17. Moreover, the net debt for the half year period will increase while the full year net debt is still expected to witness reduction. The first quarter sales exceeded the target combined with a strong pipeline into H2. Even the second half EBITDA is expected to be stronger than first half. Meanwhile, EPD stock has risen 52.9% in the last six months as on 30 December 2016, while we give a “Speculative Buy” recommendation on the stock at the current price of – $ 0.52

 
EPD Daily Chart (Source: Thomson Reuters) 

MaxiTRANS Industries Ltd

 

MXI Details
Strong business growth from China: MaxiTRANS Industries Ltd (ASX: MXI) in FY 16 reported a 3.3% growth in the revenue to $340.2 million, while the underlying profit after tax grew 39% to $8.75 million. Reported net profit after tax grew 16% to $5.2 million after significant items relating to Bundaberg factory closure costs and impairment of intangible assets.

 

FY 16 Performance (Source: Company Reports)
 
Despite challenging environment in Australia and New Zealand, the group’s China business delivered strong growth. The group is set to pursue significant opportunities in FY17 for Maxi-CUBE. MXI stock has risen 14.4% in the last six months as on 30 December 2016, and has a decent dividend yield. We give a “Speculative Buy” recommendation on the stock at the current price of – $ 0.51

 
MXI Daily Chart (Source: Thomson Reuters) 

Magnis Resources Ltd

 

MNS Details
Finished Nachu Graphite Project Valuation for construction of the mine: Magnis Resources Ltd (ASX: MNS) finished the valuations for re-settlement and land compensation activities on the Nachu Graphite Project in Tanzania, which is a significant milestone for the company. This will open the way forward for the construction of the mine and MNS is ready to start construction at the end of the wet season.
 
 
Plan showing the individual parcels of land in the Special Mining Licence area (Source: Company Reports)
 
The land is purchased for the re-settlement of homeowners and has been cleared for the construction activities beginning early in the new year. The cost is projected to be US$900,000 for the construction of a new housing village which is set to be finished in the second quarter of 2017. We maintain a “Buy” recommendation on the stock at the current price of – $ 0.75

 
MNS Daily Chart (Source: Thomson Reuters) 

Praemium Ltd

PPS Details
Clarification on announcement by OneVue: Praemium Ltd (ASX: PPS) gave a clarification on the announcement by OneVue as PPS appointed OneVue as its superannuation administration partner. Meanwhile, Praemium Australian SMA platform has over $3.3 billion in assets, that includes $425 million of the assets in PPS retail superannuation offer. These assets will remain invested on PPS platform. PPS stock has risen 28.99% in the last six months as on 30 December 2016 and we believe the bullish momentum to continue. We give a “Buy” recommendation on the stock at the current price of – $ 0.44

 
PPS Daily Chart (Source: Thomson Reuters) 

GR Engineering Services Ltd

 

GNG Details
Awarded a Scoping Study: GR Engineering Services Ltd (ASX: GNG) has been awarded a Scoping Study for the development of operations at the Mount Bundy Gold Project in the Northern Territory as a lead consultant, with Entech Pty Ltd to provide important resource and mining inputs. The study would include the assessment of initial operating parameters and financial metrics for a large-scale operation from the current resource base of 26.9Mt at 1.5g/t (1,235,000oz gold). Moreover, the FY17 revenue is expected to be broadly consistent with FY16 and would depend upon the completion of Mungana gold, lead/zinc concentrator EPC works in 2H FY 17. Meanwhile, GNG stock has risen 37.56% in the last six months as on 30 December 2016. Trading at a reasonable P/E, we give a “Speculative Buy” recommendation on the stock at the current price of – $ 1.35

 
GNG Daily Chart (Source: Thomson Reuters)

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