Beach Energy Ltd


BPT Details

• Strong production and cost savings: Beach Energy Ltd (ASX: BPT) delivered a solid sales volumes rise by 5% to 2.6 MMboe for the march quarter driven by the Drillsearch merger and rising gas volumes, which partially offset pressure from timing of crude oil shipments. Accordingly, the overall sales revenue fell by 5% to $120 million during the quarter, despite falling realized oil and gas liquids prices. But the group’s capital expenditure plunged by 51% to $38 million as its initiatives of controlling costs were paid off while Cash reserves reached $242 million. The group’s operating efficiency efforts led to more cost savings of up to $7 million per annum (pre-tax) while Beach Energy intends to deliver annual cost savings of up to $40 million (pre-tax) by fiscal year of 2017. BPT estimates its fiscal year of 2016 capital expenditure by $180 million to $210 million. The group finished artificial lift campaign at ex PEL 91, which led to the incremental production of 440 bopd during the quarter. BPT also finished over nine wells with a success rate of 78% during the March quarter. Beach Energy enhanced its fiscal year of 2016 over 9.5 – 9.8 MMboe as compared to its earlier guidance of 8.0 – 8.6 MMboe for the same period. As a result the stock surged over 8.03% on April 29, 2016.
• Recommendation: We maintain our “Buy” recommendation on the stock at the current price of $0.74

Third quarter of 2016 Performance (Source: Company Reports)
 
Blackmores Limited


BKL Details

• Outstanding financial performance: Blackmores Limited (ASX: BKL) reported a Group sales increase of 63% yoy to $532 million for the nine months to March 31, 2016 and consequently generated a net profit after tax (NPAT) increase by 145% yoy to $76 million during the period. BKL has been delivering sales & profits for the tenth consecutive quarter on a year on year growth. Improving consumer demand for quality health and nutrition products coupled with the group’s target in China led to its strong top line growth. Accordingly, BKL stock rallied over 5.7% on April 29, 2016 resulting to the total returns of over 155.31% in the last one year.
• Recommendation: We believe that BKL has been facing competition in China from various brands including the ones from Australia. Moreover, the heavy rally in the stock placed BKL at high P/E and a low dividend yield. We give an “Expensive” recommendation on the stock at the current price of $161

 

Third quarter of 2016 performance (Source: Company Reports)
 
Virtus Health Ltd


VRT Details

• Rising ARS activity in domestic as well as international operations: Virtus Health Ltd (ASX: VRT) stock surged over 4.6% on April 29, 2016. VRT was able to deliver a strong first half of 2016 performance wherein its Australian Operations EBITDA surged 6.2% to $39.0 million driven by 8,509 fresh cycles which rose 11.0% against the prior corresponding period. The Premium clinics organic growth increased by 3.2%. As per the International Operations, EBITDA surged by 98% to $2.4 million despite Singapore loss of -$0.6 million, driven by the EBITDA increase of 15.6% on a yoy basis from Ireland. VRT delivered 1,148 cycles in Ireland and 124 cycles in Singapore.
• Recommendation: We put a “Hold” recommendation on the stock at the current price of $6.76

 

Growing international cycles (Source: Company Reports)

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