Webjet Limited


WEB Details
·       Strong results and strategic sourcing partnership with Thomas Cook:Webjet Limited (ASX: WEB) stock surged over 20.5% on August 18, 2016 with release of its record result entailing a net profit of $22.2 million (27%) and revenues of $154.5 million (30%) for the full year period ending June 30 2016 over prior corresponding period. The group has also entered into strategic sourcing partnership with Thomas Cook. The group would pay Thomas Cook over £21 million for entering into the supply agreement, and for transferring hotel contracts to Webjet. Accordingly, the group’s European online accommodation business, Sunhotels, would service the wholesale market and acknowledge the volumes of Thomas Cook’s complementary hotel business which would transfer over 3,000 hotel contracts. On the other hand, WEB stock already rallied over 56.9% in the last six months (as of August 17, 2016) while trading at a high P/E.
·       Recommendation:We give an “Expensive” recommendation on the stock at the current price of $9.70

Treasury Wine Estates Ltd


TWE Details

·       Strong performance across all the segments boosted the bottom line: Treasury Wine Estates Ltd (ASX: TWE) stock surged over 11.5% on August 18, 2016 as the group reported a solid performance across all the regions in fiscal year of 2016. Australia & New Zealand (ANZ) EBITS surged 4% to $92.3m, on the back of strong volume rise in its Priority Brands, coupled with better price realization on supply constrained wines. Asia’s % EBITS surged 40% to $102.0m driven by ongoing optimization of TWE’s routes-to-market across the region, portfolio diversification and better consumer demand for imported wine brands. Europe EBITS reached $47.7 million. Americas rose 64% in EBITS to $136.3m, due to portfolio premiumization, coupled with six months contribution from the Diageo Wine acquisition ($21.7m) and foreign currency movement’s contribution. As a result, the group’s Net profit after tax doubled to $ 179.4 million during the period over the prior year. On the other hand, the stock looks over valued at the current levels and is trading at a high P/E.
·       Recommendation:We give an “Expensive” recommendation on the stock at the current price of 10.65


Fiscal year of 2016 performance (Source: Company Reports)
 
Iress Ltd


IRE Details

·       Unfavorable currency fluctuations: Iress Ltd (ASX: IRE) stock surged over 9.7% on August 18, 2016 as the company came out with solid first half of 2016 results. The group’s statutory net profit for the six months to 30 June 2016 rose 15% to $32.7 million over 1H15. IRE’s Segment Profit, which is key indicator to measure the group’s core underlying performance, reached $63.1 million and on a constant currency basis, it rose about 10% against the corresponding period of last year. Better demand in Australia, the United Kingdom and South Africa contributed to this performance. The integrations of recently acquired businesses in the United Kingdom, Proquote and Pulse, are on track wherein both businesses contributed positively. On the other hand, the South Africa and the United Kingdom results were impacted by foreign exchange movements during the first half and we believe this pressure could continue in the coming months. Moreover, UK Enterprise Lending performance was also not favorable.
·       Recommendation:Based on the foregoing, we give an “Expensive” recommendation on the stock at the current price of $11.71


Iress Ltd performance (Source: Company Reports)

---