Xero Limited

XRO Details
Changes in organisational structure: Xero Limited (ASX: XRO) has announced changes in organisational structure to support its $1 billion operating revenues’ strategy. Company is implementing a flatter organisational structure with Country Managers reporting directly to the Chief Executive Officer. Few other changes include Keri Gohman joining the company in December as President of the Americas. XRO is growing with the addition of 242,000 new subscribers in FY16 to 717,000 globally versus 222,000 for the year to September 2015. At this current rates XRO should exceed 1 million global subscribers in the next year. Moreover, XRO in FY 16 has reported operating revenues of $207.1 million, which is an increase of 67% on FY15. The global revenue grew 95% in international markets on year-on-year basis and 57% growth in Australia and New Zealand.

 

Subscription Growth (Source: Company Reports)
 
Meanwhile, Xero has crossed quarter Billion Annualized Revenue. Moreover, with the increase in subscription, XRO can add roughly NZ$100 million of annualized revenue. XRO’s annualized committed monthly revenue is $257.9 million, which is an increase of 62% on year-on-year basis. Meanwhile, XRO stock rose 11.55% in six months (as of October 28, 2016).  Accordingly, we give a “Buy” recommendation on the stock at the current price of $ 16.61

 
XRO Daily Chart (Source: Thomson Reuters) 

Village Roadshow Ltd

VRL Details
Fifth consecutive year of the Cinema Exhibition division: Village Roadshow Ltd (ASX: VRL) has reported that the attributable net profit after tax before material items and discontinued operations were $50.9 million in FY 16 which has marginally increased from $50.1 million in FY15. Moreover, VRL has reported growth for fifth consecutive year of the Cinema Exhibition division in FY 16 results. Trading at a decent dividend yield, we give a “Buy” recommendation on the stock at the current price of $ 5.09 

 
VRL Daily Chart (Source: Thomson Reuters) 

Praemium Ltd

PPS Details
Highest inflows for the September 2016 quarter: Praemium Ltd (ASX: PPS) has reported inflows for the September 2016 quarter of $494 million which is the highest on record. PPS has reported for the quarterly inflows of £81 million ($140 million) for the international business and the quarterly inflows of $354 million for the Australian business for the September quarter. The international funds under administration (FUA) is now over £1 billion. Additionally, the Smart Investment Management (Smart^im) assets grew 60% on last year to £288 million and the overall SMA FUA is now over $5 billion. Therefore, FUA has grown 35% in a year. The growth in the FUA during the September quarter is due to the asset inflows, positive equity market movements and generally improved trading conditions. In addition, there was accelerated rate of financial improvement across both the Australian and UK businesses. The group will hold its AGM on November 22, 2016. Meanwhile, PPS stock rose over 33.8% in the last six months (as of October 28, 2016) and still we give a “Buy” recommendation on the stock at the current price of $ 0.47

 
PPS Daily Chart (Source: Thomson Reuters) 

Contango Income Generator Ltd

CIE Details
Agreement with stockbroking firm for dividend shortfall: Contango Income Generator Ltd (ASX: CIE) has entered into an agreement with stockbroking firm Taylor Collison Limited to underwrite the CIE’s Dividend Reinvestment Plan shortfall for the FY16 final dividend. Moreover, CIE got listed on 13 August 2015 after an IPO and raised the funds of $70,263,882. CIE began investment activities on 18 August 2015. Additionally, CIE has posted revenues increase from zero to $4.4m in FY 16 and as a result the profit after tax grew from zero to $2.7 m. The group will hold its AGM on November 10, 2016. Having a solid dividend yield, we give a “Speculative Buy” recommendation on the stock at the current price of $ 0.98

 
CIE Daily Chart (Source: Thomson Reuters) 

FlexiGroup Limited

FXL Details
Financial Performance for FY 16 met the updated guidance: FlexiGroup Limited (ASX: FXL) reported an 8% growth in the Cash NPAT of $97.0 million in FY 16 while delivered a 19% growth in the volume and 47% growth in the receivables. This is in line with updated guidance provided in May 2016 by the company.

 

FY 16 Financial Performance (Source: Company Reports)
 
Moreover, cash NPAT growth is also due to the diversification, organic growth, successful acquisitions and implementation of funding strategies to reduce costs. FXL’s new business volume for FY 16 was $1,350 million, which is up 19% on the prior year and the closing receivables grew 47% to $2,094 million. This is the first time the closing receivables crossed the $2 billion mark in the FXL’s history. Therefore, there is a strong portfolio income growth of 16% to $396.4 million as compared to the corresponding FY 15. Trading at a decent dividend yield and a reasonable P/E, we give a “Buy” recommendation on the stock at the current price of $ 2.25

 
FXL Daily Chart (Source: Thomson Reuters) 

Oil Search Ltd

OSH Details
Production & revenue update for the third quarter 2016: Oil Search Ltd (ASX: OSH) has posted the total production of 7.63 million barrels of oil equivalent (mmboe) in the third quarter 2016, which is 6% higher in the second quarter and is the second highest quarterly production in OSH’s history. Moreover, the PNG LNG Project was back to full production in the third quarter, after the routine maintenance and a brief unplanned shut-down in the second quarter 2016. The third quarter 2016 production net to OSH from the PNG LNG Project was 5.94 mmboe, which comprised of 25.9 bcf of LNG and 0.87 mmbbl of liquids.

 

Production & Revenue Highlights for the third quarter 2016 (Source: Company Reports)
 
The Project produced at an annualized rate of about 8.1 MTPA, which is up from 10% higher than in the second quarter and the highest quarterly rate achieved since it came on stream in 2014, and 17% above the nameplate capacity. Additionally, OSH in the third quarter 2016 reported a 16% higher than in the second quarter of 2016. We give a “Buy” recommendation on the stock at the current price of $ 6.66

 
OSH Daily Chart (Source: Thomson Reuters) 

AVJennings Ltd

AVJ Details
Decent growth in FY 16: AVJennings Ltd (ASX: AVJ) reported the revenue growth of 32.7% to $421.9 million in FY 16, growth in profit before tax of 22.0% to $58.8 million and growth in earnings per share of 18.6% to 10.71 cents. The revenue grew on the back of changes in product mix and project share, and AVJ benefitted from the announcements made in prior periods that it would acquire the interests of joint venture partners in the ‘Argyle’, Sydney and ‘St Clair’, Adelaide projects.
 

FY 16 Contract Signings and Settlements (Source: Company Reports)
 
Meanwhile, AVJ stock rose 11.32% in six months (as of October 28, 2016), while the stock is still trading at attractive levels which is having a strong dividend yield and is trading at a low P/E. The group will hold its AGM on November 18, 2016. Accordingly, we give a “Buy” recommendation on the stock at the current price of $ 0.57

 
AVJ Daily Chart (Source: Thomson Reuters) 

Touchcorp Ltd

TCH Details
Boosting capital position: Touchcorp Ltd (ASX: TCH) has raised $25.6 million through a placement of 12.8 million ordinary shares at $2.00 per share. The fund would offer a working capital to execute its growth objectives and achieve its strategic initiatives over the near term. The group will hold its extraordinary general meeting on November 08, 2016. We give a “Speculative Buy” recommendation on the stock at the current price of $ 2.04

 
TCH Daily Chart (Source: Thomson Reuters) 

Gascoyne Resources Ltd

GCY Details
FS going on the Dalgaranga project: Gascoyne Resources Ltd (ASX: GCY) has made the progress on the Feasibility study (going to complete in the mid of December quarter) in the September 2016 quarter, as well as an aggressive exploration and resource drilling program on the Dalgaranga project.

 

Project Locations (Source: Company Reports)
 
The new resource estimate resulted in a 40% increase in the measured and indicated mineral resource at Dalgaranga from the resource drilling. There were numerous intersections on the project in which at high grade intersections at Gilbeys South, the significant extensions to the main Gilbeys ore zone got discovered. We give a “Speculative Buy” recommendation on the stock at the current price of $ 0.57

 
GCY Daily Chart (Source: Thomson Reuters) 

Infigen Energy Ltd

IFN Details
Management changes: Infigen Energy Ltd (ASX: IFN) recently announced that its Q1 FY 17 unaudited production of 437 GWh is up 11% while revenue of $62.8 million is up 56% on pcp. The group lately also announced about the retirement of its Managing Director and the Chief Executive Officer, Miles George after the AGM on November 17, 2016 and the appointment of Ross Rolfe AO as his successor. Moreover, IFN reported on a continuing operations basis, the net profit after tax of $7.0 million in FY 16 which was $25.4 million higher than the prior corresponding period (pcp) primarily due to higher Large-scale Generation Certificate (LGC) and wholesale electricity prices.

 

FY 16 Financial Performance (Source: Company Reports)
 
The statutory net profit after tax was $4.5 million, which is an increase of $308.1 million primarily due to the pcp reflecting a loss on discontinued operations. IFN stock rose over 33.33% in the last six months (as of October 28, 2016). Accordingly, we give a “Speculative Buy” recommendation on the stock at the current price of $ 1.005

 
IFN Daily Chart (Source: Thomson Reuters)

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