Two dividend stocks on the rise - SAI Global and Mantra Group

 
SAI Global Limited  


SAI Details

·       Scheme Implementation Deed: SAI Global Limited (ASX: SAI) stock rose 28.7% on 26 September 2016 after SAI and Casmar Holdings Pte. Limited, a wholly-owned subsidiary of the Baring Asia Private Equity Fund VI entered into a binding Scheme Implementation Deed. Under this agreement, Baring Asia will acquire 100% of the shares that it does not already own in SAI by way of a Scheme of Arrangement at the consideration of $4.75 cash per SAI share. This represents an enterprise value of $1,237 million. The scheme is subject to certain terms and conditions. Moreover, the SAI Directors unanimously recommended that SAI shareholders vote in favor of the scheme in the absence of a superior proposal. Additionally, the scheme booklet is expected to be sent to SAI shareholders in early November 2016 and it is currently anticipated that SAI shareholders will be given the opportunity to vote on the scheme in early December 2016. Meanwhile, Norges Bank became a substantial holder with 5.24% voting power. On the other hand, we believe that SAI stock is at slightly higher valuation with the recent rise.

·       Recommendation:We give an “Expensive” recommendation on the stock at the current price of $4.62
 

Five Year Financial Performance (Source: Company Reports)
 
Mantra Group Ltd


MTR Details

·       Underlying NPAT exceeded the guidance in FY 16: Mantra Group Ltd (ASX: MTR) stock rose 1.24% on 26 September 2016. The stock is getting a boost from tourism outlook. Meanwhile, MTR reported that underlying EBITDAI grew 23% to $89.8m in FY 16 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 in FY 16. The underlying NPAT of $43.8m exceeded the guidance of $40m-$42m in FY 16, up $7.6m on FY2015. FY2016 statutory NPAT was $37.1m, up $1.0million on FY2015. Eleven hotels were added to the network in FY16 and Ala Moana got added in July 2016. Moreover, in FY 17 the expected the EBITDAI, NPAT and NPATA are in the range of $101.0m - $107.0m, $48.5m - $52.5m and $51.0m - $55.5m, respectively. Meanwhile, MTR stock has fell 25.12% in six months as on 23 September, 2016.

·       Recommendation:We give a “Buy” recommendation on the stock at the current price of $3.27
 
 
FY16 Financial Performance (Source: Company Reports)

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