Eclipx Group Ltd

ECX Details
· NPATA growth in 1H 2016 as per FY 16 guidance: Eclipx Group Ltd (ASX: ECX) stock rose over 4.17% on October 21, 2016. The group lately announced for release of securities that have been subject to voluntary escrow, post November 02, 2016. ECX had reported a 9% growth in the NPATA to $26.0 million in the 1H 2016 while an 8% growth in the Net Operating Income to $83.3million. Moreover, ECX expects NPATA growth to be in the range of 8.5%–10.0% in FY 16. ECX has over $1.8 billion of fleet assets under management or financed across Australia and New Zealand. ECX’s wholly owned subsidiary, FleetPlus, has been appointed to the Queensland Government’s Novated Leasing Services Panel. On the other hand, ECX stock has risen 34.77% in the last six months as on October 20, 2016 placing them at a higher P/E.

· Recommendation: We give an “Expensive” recommendation on the stock at the current price of $ 4.24
 
 
1H 2016 Financial Performance (Source: Company Reports)

Bellamy's Australia Ltd

BAL Details
· Investments to optimise earnings: Bellamy's Australia Ltd (ASX: BAL) stock rose 4.6% on October 21, 2016. BAL reported an EBIT growth of 342% to $54.3m in FY16, while the revenue grew 95% to $245m in which China’s revenues have been up 331% and the NPAT grew by 326% to $38.3m. The EBIT margin has more than doubled from 10% in FY15 to 22% in FY16. Moreover, BAL is enhancing the manufacturing volume for FY17 indicating their confidence over their business in existing and new markets. The group conducted its AGM recently and stated plans to invest about $15-20m in FY17 across product, marketing and other activities to optimise earnings. BAL stock has risen 20.31% in the last six months (as on October 20, 2016).

· Recommendation: We give a “Hold” recommendation on the stock at the current price of $ 13.20
 

FY16 Financial Performance (Source: Company Reports)

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