JB Hi-Fi Limited
JBH Details
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Enhancing store penetration: JB Hi-Fi Limited (ASX: JBH) stock surged over 9.9% on August 15, 2016 as the group came up with a strong FY16 results. The group delivered net profit after tax (NPAT) rise of 11.5% year on year (yoy) to $152.2 million while sales rose to $3.95 billion as compared to $3.65 billion last year. Overall sales grew by 8.3% with comparable sales rising 5.4%. Gross profit rose 8.4% and cost of doing business reached 15.2%. JBH had 194 stores in Australia and New Zealand as of 30 June 2016 wherein the group opened nine new stores and closed two stores. The Company expects to open a total of seven new stores in FY17 leading to store rollout beyond 214 locations across Australia and New Zealand. JBH also enhanced its online sales which rose by 35.8% in FY16, although they contribute only 3.0% of the total sales. Meanwhile, management announced a buy-back program of up to 429,371 ordinary shares wherein the cash cost would be over $11.8 million.
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Recommendation: We give a “Hold” recommendation on this dividend yield stock at the current price of $30.09
Performance snapshot (Source: Company Reports)
Ansell Limited
ANN Details
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Better than estimated fiscal year of 2016 performance: Ansell Limited (ASX: ANN) stock surged over 17.7% on August 15, 2016 as the group delivered a better than estimated second half of 2016 performance driving the full year. The group’s growth brands in Industrial, Single Use and Sexual Wellness delivered a solid performance and expanded their penetration via new product launches and made ongoing progress in developing stronger distributor partnerships. Single Use GBU delivered a solid EBIT growth up 14.9% on relatively stable sales. Sexual Wellness GBU’s revenue rose over 8.2%. This increase was mainly due to the group’s SKYN® brand which rose over 12% on success with lubricants and continued share gain by non-latex condom range. Natural rubber latex brands also performed well, and rose by 10%, while emerging markets performance was also good wherein China’s business grew 28% on e-commerce success, while India’s branded business enhanced by 13%. ANN solid increase of Operating Cash Flow by 25% on a yoy basis to $145m, also made investor’s happy leading to the rise in the stock. The group enhanced its full year dividend by 1.2% to US43.5¢ and declared a final dividend of US23.5¢. But, ANN’s reported sales fell 4% yoy to US$1,572m while EBIT also lost 4% on a yoy basis to $236.7m, which is also on an expected note.
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Recommendation: We give a “Hold” recommendation on the stock at the current price of $23.16
Ansell Limited performance (Source: Company Reports)
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