JB Hi-Fi Ltd

JBH Details
· Strong first half results: JB Hi-Fi Ltd (ASX: JBH) stock surged over 3.19% on February 13, 2017 driven by their solid first half of 2017 results.  JBH delivered an underlying NPAT rise of 31.7% year on year (yoy) to $125.4 million while statutory NPAT reached $110.4 million. The group also finished the $870 million acquisition of The Good Guys and despite a challenging start the performance is improving in the second half. The Good Guys sales for December 2016 rose 0.7% to $263.1 million as compared to the decline of 0.7% in the prior corresponding period. December 2016 earnings reached $14.3 million which was better than prior corresponding period (pcp) given the rising sales mix and good cost control. The group’s core market, Australian division performance was also outstanding during the period, wherein the sales rose 11.7% to $2.23 billion, against 8.7% in the prior corresponding period. Hardware and Services sales rose 15.8%, boosted by Communications, Audio, Cameras, Accessories, Computers and Home Appliance categories. Online sales showed a growth of 40.4% during the period as compared to pcp which now comprises 3.8% of total sales as compared to the FY16 mix of 3.0%.

· Recommendation: JBH stock rose over 4.3% in the last five days (as of February 10, 2017) and we believe the momentum will continue. We give a “Hold” recommendation on the stock at the current price of - $ 29.38
 

JBH divisional performance (Source: Company Reports) 

Western Areas Ltd

WSA Details
· New massive sulphide zone intersection drove the stock higher: Western Areas Ltd (ASX: WSA) stock surged over 5.5% on February 13, 2017 as the group intersected a new massive sulphide zone, including two super high grade results, just below the Odysseus North orebody at the Cosmos Nickel Complex (Cosmos). WAD002A intersected massive sulphide comprised 2.6m at 12.6% nickel, including 1.6m at 18.0% nickel, while WAD002W1W1W1 intersected massive sulphide comprised 5.3m at 15.2% nickel, including 3.4m at 22.0% nickel. Down-hole electromagnetic (DHEM) surveys at WAD002 showed two major responses at downhole depths of 1,240m and 1,290m, respectively. The 1,240m response is confirmed by drilling as mineralised massive sulphide. These results indicate there is a potential to extend the current high grade Resources at Odysseus North.

· Recommendation: WSA stock fell over 19.3% in the last four weeks (as of February 10, 2017) placing them at reasonable levels. We give a “Buy” recommendation on the stock at the current price of - $ 2.69


Odysseus North intersections (Source: Company Reports)

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