Bellamy’s Australia Ltd

BAL Details
 
·         Positive sentiments: Bellamy’s Australia Ltd (ASX: BAL) stock surged up 5.1% on May 01, 2017 at the back of improving sentiments. Meanwhile, Delta Partners LP has increased its interest from 8.79% to 9.89% in the company. Recently, the group appointed John Ho as the non-executive director of the company.

·         Recommendation: The stock has risen about 12.7% in last one month (as at April 28, 2017) at the back of improved sentiments. We maintain a “Hold” on the stock at the current price of $ 5.40

Lovisa Holdings Ltd

LOV Details
·         Positive update: Lovisa Holdings Ltd (ASX: LOV) stock soared 9.7% on May 01, 2017 at the back of positive update from the group on its profit guidance and footprint expansion. LOV announced that owing to strong trading conditions, same store sales surged 6.7% for the March 2017 quarter while year-to-date same store sales growth was of the order of 10.9%. The group now expects full-year FY17 EBIT in the range of $38.5 million to $39.5. The group has also acquired 17 fashion accessory stores in South Africa and is progressing well on UK rollout.

·         Recommendation: In last one year, the stock has surged 69.1% and is on track to move closer to its 52-week high price. We give a “Hold” recommendation at the current price of $ 3.84

CSR Ltd

CSR Details
·         Sale of Monier Roofing manufacturing site: CSR Ltd (ASX: CSR) stock enhanced over 3.7% on May 01, 2017 at the back of continued upward momentum. The group announced the sale of its Monier Roofing manufacturing site located at Rosehill, NSW, which is an eight hectare site and is expected to generate the total Property EBIT of $49.2 million. Monier Roofing would continue its manufacturing operations at Rosehill under an operating lease. Moreover, the discussions are underway with the regulatory authorities to secure a new site on CSR owned land in Western Sydney. The new factory would complement Monier’s established concrete roof tile manufacturing facilities at Darra, QLD and Springvale, VIC and terracotta roof tile manufacturing at Vermont, VIC. Additionally, the company has confirmed that Monier will transition teams from Rosehill to the new manufacturing site over the next three to four years to minimize the impact on CSR’s people, customers and operations.

·         Recommendation: CSR stock rose over 33.88% in the last six months (as of April 28, 2017), and is trading at higher levels. We give an “Expensive” recommendation at the current price of $ 5.07

Australian Pharmaceutical Industries Ltd

API Details
·         Forecasts cash positive at the end of 2017: Australian Pharmaceutical Industries Ltd (ASX: API) stock surged around 3.6% on May 01, 2017 while the group had recently delivered strong first half of FY 17 results that drove the sentiment. There has been a 15% growth in the underlying NPAT of $29.1m on the prior corresponding period. The reported NPAT included a $2.4m loss on the sale of API’s shareholding in CH2 in the pcp. The Priceline/Priceline Pharmacy network grew to 450 stores in 1H 2017 by adding 25 stores, with 7.2% total retail network sales growth and comparable retail store sales growth up 0.4%. The company has reported net debt decrease of $84.4m from the same time last year and is expected to again decrease in the second half. API expects to be cash positive by the calendar year end.  Moreover, API expects its Priceline Pharmacy network to expand by at least 20 stores in FY 17 to 462. API also expects to generate further operational improvements due to the major capital investments made in recent years.

·         Recommendation: API stock rose over 19.89% in the last six months (as of April 28, 2017).We give a “Hold” recommendation at the current price of $ 2.31 

1H 17 Financial Performance (Source: Company Reports)

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