Travel, Leisure and Entertainment Stocks

Crown Resorts Ltd

CWN Dividend Details
 
Leveraging China tourism opportunity: Crown Resorts Ltd (ASX: CWN) stock surged over 13.97% in the last six months (as of March 22, 2016) as the group reported a strong financial half year 2016 results with actual EBITDA rise of 12.7% to $455.9 million. This increase was mainly driven by the Crown Aspinalls which surged 525.7% to $14.9 million (actual).
 


Financial results overview (Source: Company reports)
 
We do note that CWN has been removed from S&P/ASX 50 Index and S&P/ASX All Australian 50 Index as per the March quarter updates by S&P Dow Jones Indices. However, Crown still seem to be well positioned to leverage the booming potential from China, which reported 120 million outbound tourists in 2015, an increase of 12% against 2014 based on China Tourism Research Institute reports. CWN also has a decent dividend yield and a declared interim dividend of 33 cents per share. We maintain our "BUY" recommendation on the stock at the current share price of  $11.91
 
 
CWN Daily Chart (Source: Thomson Reuters)
 

Star Entertainment Group Ltd

SGR Dividend Details
 
Strong domestic tables and slot revenues: Star Entertainment Group Ltd (ASX: SGR), formerly known as Echo Entertainment Group Ltd, recorded a drop of 37.9% in the statutory net profit after tax in its latest half yearly 2016 financial results, from the prior year period led by a low win rate in the International VIP rebate business.
 


Financial metrics (Source: Company reports)
 
On the other hand, the group’s Domestic tables’ revenue grew 12.3%, while slots revenue was up 7.4%. More than estimated financial performance by the group also drove its stock by about 19% in the last six months (as of March 22, 2016). But, we believe the rally placed the stock at higher levels which is trading at unreasonable P/E ratio and close to its 52-week high price. Hence, we rate the stock as "Expensive" at the current share price of $5.59
 
 
SGR Daily Chart (Source: Thomson Reuters)
 

Aristocrat Leisure Ltd

ALL Dividend Details
 
Oustanding recurring revenues performance: Aristocrat Leisure Limited (ASX: ALL) announced that the company's 2015 group revenue soared almost 65% from the year ago period, while normalized net profit after tax and before amortization of acquired intangibles grew 79% in reported terms. Revenue percentage derived from the recurring sources grew to 45% for 2015 full year compared to almost under 24% as of September 30, 2014. This indicates the company's ability of decreasing earnings cyclicality while developing stable results.
 


Revenue share improving (Source: Company reports)
 
On the other hand, ALL stock surged over 20.7% (as of March 22, 2016) in the last six months placing them at high P/E ratio. As a result, given the flat global market conditions, we rate the stock as "Expensive" at the current share price of $9.82
 
 
ALL Daily Chart (Source: Thomson Reuters)
 

Village Roadshow Ltd

VRL Dividend Details
 
Strengthening theme parks business: Village Roadshow Ltd (ASX: VRL) stock plunged over 22.7% in the last four weeks (as of March 22, 2016) at the back of the net loss of $3.5 million reported for the half year ended 31 December 2015 despite an overall positive guidance. The group expects a better theme parks and cinema exhibition division performance but pressure in film distribution business against 2015 performance. The stock seems to consolidate a little in the last five days.
 


Earning highlights (Source: Company reports)
 
On the other hand, VRL delivered EBITDA of $77.9 million and profit before tax of $28.8 million in its first half financial year 2016 results compared to $69.2 million and $22.6 million, respectively, in year ago period. Looking ahead, the group also plans to increase cash flows and strengthen Gold Coast theme parks. We believe that the recent correction in the stock placed them at attractive valuations and the stock has the potential to rise further in the coming months. VRL also has a significant dividend yield. Therefore, we rate the stock a "BUY" at the current share price of  $5.20.
 
 
VRL Daily Chart (Source: Thomson Reuters)
 

Event Hospitality and Entertainment Ltd (Amalgamated Holdings Ltd)

EVT Dividend Details
 
Stable financials: Event Hospitality and Entertainment Ltd (ASX: EVT), formerly Amalgamated Holdings Limited, in its latest half yearly 2016 financial results reported a net profit after tax of $76.7 million, an increase of 49.9% from year ago period. Total revenue and other income increased to $661.1 million from $570.5 million in year ago period.
 


Financial Highlights (Source: Company reports)
 
Occupancy at the group's owned hotels increased by 2.9 percentage points to 78.9% and average room rate rose 4.1% to $167 thereby leading to an 8.1% rise in revenue per room. On the other hand, the stock has declined by over 9% (as of March 22, 2016) during this year to date given the volatile market environment. The stock is still trading at a high P/E ratio. We place "Expensive" recommendation on the stock at the current share price of $15.18
 
 
EVT Daily Chart (Source: Thomson Reuters)

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