Nextdc Ltd

NXT Details
· Outstanding half year results: Nextdc Ltd (ASX: NXT) stock surged over 12.3% on February 24, 2017 boosted by the solid first half of 2017 results. Revenue surged 39% to $58.7 million in the first half of 2017 as compared to $42.1 million in the prior corresponding period. EBITDA for the group rose 110% to $23.9 million on a year on year (yoy) basis, and accordingly, the profit before tax surged to $8.0 million from $0.6 million in the prior corresponding period. Operating cash flow enhanced to $25.4 million during the period from $5.9 million in the prior corresponding period. The group has a cash and term deposits of $276.5 million as at 31 December 2016. Contracted utilization for the group enhanced 32% to 30.0MW as at 31 December 2016 while Interconnection (cross connects) surged 42% to 5,472 as at 31 December 2016. The group’s number of customers rose 23% to 699 as compared to 566 in the prior corresponding period. Meanwhile, the group is expanding their planned capacity at S1 (Sydney) to 15MW from 14MW, while B2 (Brisbane) and M2 (Melbourne) are on track to finish by the end of 2H17, with ~1.5MW and ~2MW of initial capacity, respectively (Phase 1). 

Building a ddiversified revenue base (Source: Company Reports)

· Recommendation: The shares of NXT recovered over 4.97% in the last four weeks (as of February 23, 2017). We give a “Hold” recommendation on the stock at the current price of – $ 3.56

Asaleo Care Ltd

AHY Details
· Better than expected performance of Personal Care segment is supporting the stock rally: Asaleo Care Ltd (ASX: AHY) stock surged over 9.7% on February 24, 2017 following a rally of over 10.36% in the last five days (as at February 23, 2017). The group’s FY16 results are in line with their July revised guidance post the improvement in the second half of 2016 performance. The group’s Personal Care segment performed well in the second half than the first half, driven by Feminine Care and Incontinence Care categories. Professional Hygiene and Incontinence Healthcare segments performed strongly during the period. The group’s New Zealand and Fiji investments contributions also supported the group’s performance.  The group’s innovations in Feminine Care & Baby Care include Libra Roll.Press.Go™ which will be the first to market with a patented innovation on the Pads range. AHY also launched a nappy with new Core Technology, and for FY17, the group forecasts a low single digit profit growth as driven by their initiatives contribution.
 
· Recommendation: AHY stock is trading at a reasonable P/E and has a solid dividend yield.We recommend a “Hold” on the stock at the current price of – $ 1.69


Financial Performance (Source: Company Reports)

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