Three fully franked stocks with dividend yields over 3%

Mantra Group Ltd

MTR Details
Underlying NPAT exceeded the guidance in FY 16: Mantra Group Ltd (ASX: MTR) is all set to complete the much sought after Mantra Sydney Airport Hotel in second half of 2017 while the multi-million dollar Wallaroo Shores Resort is scheduled to be completed at the beginning of 2018. The group is working hard to optimise distribution channels to increase mobile capability. MTR in FY 16 reported the underlying EBITDAI rise of 23% to $89.8m in line with market guidance (excluding transaction costs of $7.3m incurred in respect of acquisitions). The total revenue increased by 21.5% to $606.1m.
 

Financial Performance of FY 16 (Source: Company Reports)
 
The underlying NPAT of $43.8m exceeded the guidance of $40m-$42m, up $7.6m on FY2015. FY2016 statutory NPAT was $37.1m, up $1.0million on FY2015. 11 hotels were added to the network in FY16 and Ala Moana got added in July 2016 and has been transitioned smoothly. Moreover, in FY 17 the expected EBITDAI, NPAT and NPATA are of between $101.0m - $107.0m, $48.5m - $52.5m and $51.0m - $55.5m, respectively. We give a “Buy” recommendation on the stock at the current price of $ 3.48

 
MTR Daily Chart (Source: Thomson Reuters) 

Super Retail Group Limited

SUL Details
Restructuring Businesses: Super Retail Group Ltd (ASX: SUL) came up with the trading update for the 16 weeks to October 22, 2016 indicating a solid start to the year with profit coming in line with budget. Supply chain development program and cost control have said to offer benefits. SUL plans to open 15 new stores in the Auto Division and refurbish up to 45 stores; and 14 new BCF stores for the Leisure Division in the financial year. In the Sports Division, 14 new stores are planned to be open. The group further highlighted that store development and refurbishment program will be the major component of capital expenditure plans for the year which are now expected to be around $110 million. Rebel and Amart Sports businesses have also been said to provide momentum through the half to date while restructuring of the Infinite Retail business has been progressing well. The group closed the 36 Ray’s Outdoors stores as per the plan at the end of the first quarter. Earlier, the group reported an 8.2% growth in the sales to $2.42 billion in FY 16 (for 53 weeks to 2^nd July 2016) while the normalized net profit after tax increased by 2.2% to $108.6 million as compared to the corresponding period FY 15 (52 weeks) after adjusting for restructuring costs and brand name impairment.

 

Sales growth (Source: Company Reports)
 
Meanwhile, SUL stock rose 25.9% in the last six months (as of October 21, 2016). We give a “Hold” recommendation on the stock at the current price of $ 10.28

 
SUL Daily Chart (Source: Thomson Reuters) 

Blackmores Limited

BKL Details
First Quarter of FY 17 will be down due to the retailers destocking: Blackmores Limited (ASX: BKL) is set to hold its AGM on October 27, 2016. BKL sales grew 52% to $717 million in FY 16 as the sales have been boosted by over $200 million in China influenced sales. The group reported profit attributable to owners of $100 million, which is up 115% as compared to FY 15. In addition, BKL had acquired Global Therapeutics in May 2016. However, the Australian wholesale market is volatile and has softened in recent weeks due to the retailers destocking and some exporters changing the channels through which they acquire products.

 

Financial Performance of FY 16 (Source: Company Reports)
 
Therefore and as per the outlook given by the company, the first quarter result is forecasted to be down as compared to the prior corresponding period. Meanwhile, BKL stock fell 24.21% in the last three months (as of October 21, 2016). We give an “Expensive” recommendation on the stock at the current price of $ 112.72

 
BKL Daily Chart (Source: Thomson Reuters)

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