Mayne Pharma Group Ltd
MYX Details
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Outstanding results: Mayne Pharma Group Ltd (ASX: MYX) recovered over 3.5% on September 01, 2016 after falling over 9.3% in the last one month (as at August 31, 2016) while Westpac Banking Corp lowered the voting power to 5.02% from 6.07%. The group delivered outstanding FY16 results, wherein the revenues rose 89% to $267.3 million in FY16 while the underlying EBITDA rose 143% year on year (yoy) to $88.5 million against FY15. Reported EBITDA surged 146% yoy to $76.9 million in FY16 while the net profit after tax surged 379% to $37.4m. The group met the Doryx® EBITDA guidance of an average of US$2.7m/month against FY16. MYX even launched dofetilide capsules and delivered first generic to Pfizer’s Tikosyn. The group got an FDA approval of next generation Doryx MPC tablets. On the other hand, MYX stock already rallied over 23.4% in the last three months.
· Recommendation: We rate the stock “Expensive” at the current price of $1.915
Fiscal year of 2016 highlights (Source: Company Reports)
Gateway Lifestyle Group
GTY Details
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Decent FY16 results, but issued a weak FY17 outlook: Gateway Lifestyle Group (ASX: GTY) stock surged over 3.4% on September 01, 2016, after falling nearly 13.6% in the last five days (as at August 31, 2016) on the back of lower than estimated outlook forecasts. The group’s underlying net profit after tax attributable to security holders rose 8.2% which is better than the prospectus forecast. The group delivered solid settlement figures wherein 262 new homes are settled which is better than the PDS forecast of 261 settlements. The group has already committed a further 75 sales for financial year 2017. Average gross profit of $100,400 per home was settled while 5,623 residential sites were with an average site rent per week of $141, as of 30 June 2016. On the other hand, investors were disappointed with group’s FY17 outlook which estimates an underlying net profit after tax of about 5% excluding further acquisitions.
· Recommendation: We believe the weakness in the stock would continue even in the coming months and accordingly give an “Expensive” recommendation at the current price of $2.42
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