The ASX up 18 to 6130 as the index kept in a narrow range today as results and corporate news continues to dominate. Dow futures up 129 points. Banks were soggy as money went elsewhere. The Big Bank Basket fell again to $121.81. AMP lost its Chair as Murray resigns and Pahari steps aside with the stock up 1.0%. In the mining sector, FMG rose 3.2% after announcing a 100c dividend and showed the power of strong cash flow and debt repayments. BHP rose 0.55% though RIO still suffering from the fall out of destroying heritage sites. Gold miners slipped and energy stocks are a little soggy despite storms heading towards US production facilities in the Gulf of Mexico. Healthcare in casualty today with CSL falling -0.14% and RHC down 1.1%. Industrials though doing well again, WOW up 0.5% COL up 1.1% and WES up 1.5%. Tech stocks and especially BNPL stocks back in fashions as SZL rise 9.1%, Z1P up 13.0% on a Quadpay update and APX doing well up 4.5%. The All Tech Index rose 2.68%. In more corporate news, BLD up 0.5% despite announcing a non-cash, pre-tax impairment charge of $1.3bn. Results out Friday. APT up 4.2%, to expand its European footprint by acquiring BNPL company Pagantis for €50m from NBQ Corporate. NXT up 4.5% ahead of results later in the week. RWC surging 17.8%, adjusted NPAT $130.3m vs consensus $121.7m. Dividend 2.5c vs 5c year ago. GEM down 4.6%, H1 NPAT -$239.2m vs year-ago $19m. SUL up 1.6%, normalised NPAT up 1% to $154.1m. Strong sales to start FY21. BUB up 4.9% and JV partner Beingmate enter a memorandum of understanding (MOU) to manufacture China label goat infant formula locally in China. OML up 17.5%, trading has continued to build through August but still remains at 60% of last year’s levels. Nothing significant on the economic front with the 10-year yield around 0.85% still. Meanwhile in Asia, Japan slightly higher with a 0.2% rise and China up 0.8%.
- ASX 200 up 18 to 6130.
- High 6135 Low 6095. Narrow range. Average volume.
- Results dominate. Jackson Hole beckons.
- AMP chairman resigns.
- Big Bank Basket falls to $121.81.
- All Tech Index up 2.68%
- 49 trading days until the US election.
- Dow Futures up 129
- Gold steady down to AUD$2697.
- 10-year bond yield steady at 0.88%
- AUD falls to 71.63c
- Bitcoin rises to $11668
- In Asia, Japan slightly higher with a 0.2% rise and China up 0.8%.
- NVX +13.51% Battery day from Tesla beckons.
- RWC +17.77% results cheer.
- Z1P +13.05% Quadpay Update.
- MMM +10.74% lockdown winner.
- BIN +5.91% recovery looms on better numbers.
- NEA +13.01% broker upgrades.
- NHF -5.82% full year report.
- QAN -4.36% broker downgrade, Head of International leaves.
- OPT -5.88% potential US Listing and IPO.
- PET -11.43% profit taking.
- PDN -8.57% uranium cools.
- YOJ +40.00% extends agreement scope with Global Logistics provider.
- BRN +20.37% cleansing notice.
- SPT +8.36% letter to shareholders.
- DTC +8.79% solid buying.
- BUD +18.60% letter to shareholders.
- Speculative Stock of the Day: Magnetite Mines (MGT) +54.55% good volume and plenty of chatter on this one. Iron ore project in SA.
- Biggest Rises: RWC, OML, NVX, Z1P, NEA, PBH, MMM and TPG..
- Biggest Falls: UWL, OPT, NHF, RED, GEM, QAN and CRN.
- Zip Co. (Z1P) +13.05% QuadPay trading update for July, monthly transaction volume in excess of $70m, up 30% vs month ago. Added 133,000 customers in July and surpassed the 2m customer milestone in August. Partnered with MasterCard Vyze to enable BNPL within the Vyze alternative lending stack. Continues to deliver industry-leading net transaction margins (NTM) greater than 2%. Secured a debt facility of up to US$200m provided by Goldman Sachs and Oaktree.
- Fortescue Metals (FMG) +3.17% Full-year underlying NPAT US$4.75bn vs consensus US$4.75bn. Revenue US$12.82bn vs consensus $12.7bn. Underlying EBITDA US$8.38bn vs consensus US$8.23bn. Fully franked final dividend of 100c/share. Inclusive of the interim dividend of 76c/share, total dividends declared in FY20 of 176c/share, up 65% vs year ago. In FY21, expects iron ore shipments of 175-180Mt. C1 costs of US$13-US$13.50/wmt, based on an assumed exchange rate of US70c. Capital expenditure of $3-$3.4bn.
- Afterpay (APT) +4.79% To expand into Europe by acquiring Pagantis for €50m from NBQ Corporate. Pagantis provides BNPL services across Spain, Italy and France with approvals in place to operate in Portugal. It has 1,400 active merchants and around 150,000 active customers. APT is expediting its expansion into new markets to capitalise on strong consumer and merchant demand and to increase its global footprint. The acquisition accelerates and de-risks the roll-out of APT’s Clearpay branded platform across the EU market with launch targeted for Q3 FY21. Completion of the acquisition is expected to occur in or before December 2020, subject to Bank of Spain regulatory approval to the proposed change of control.
- Shaver Shop (SSG) +4.40% Full-year NPAT up 44.6% to $10.6m vs consensus $10m. Revenue up 16.4% to $194.9m vs consensus $191.4m. Like-for-like sales (LFL) (including online sales) up 15.3% vs year ago. Adjusted EBITDA $18.4m vs consensus $17.7m. Final dividend up 8% to 2.7c/share, fully franked. Strong trading results and demand have continued over the first seven weeks of FY21, with total sales up 27.5% vs year ago.
- Superloop (SLC) –4.92% Full-year NPAT -$37.8m vs year-ago -$72.1m. Ordinary revenue $107.6m, in line with preliminary announcement. Adjusted EBITDA $13.5m vs guidance at mid-point of $12-15m.
- Super Retail Group (SUL) +1.62% Full-year normalised NPAT up 1% to $154.1m vs consensus $142.1m. Revenue from continuing operations up 4.2% to $2.83bn vs consensus $2.81bn. Online sales $290.5m, up 44.4% vs year ago. Segment EBIT $236.1m vs consensus $245.9m. Final dividend 19.5c/share. Reports like-for-like (LFL) sales growth of 32% in first seven weeks of FY21. Notably BCF LFL sales up 72%.
- Senex Energy (SXY) – reports FY underlying EBITDA $52.5m vs guidance at top end of $45-55m and expectations of $55m. Revenue $120.3m vs expectations of $119.7m on eight estimates with a range of $114.8-124m. Underlying NPAT $3.8m vs expectations of $9.3m. FY21 guidance: production 3.2 – 3.6 mmboe. Underlying EBITDA $65-75m.
- St. Barbara (SBM) – reports FY underlying NPAT $108.5m vs expectations of $145.8m. Revenue $830.1m vs expectations of $825.1m on seven estimates. Underlying EBITDA $338.8m $364.2m expected. Final dividend 4 cps, fully franked. Record 8-Sep; payable 29-Sep. Repeats production guidance of 370-410Koz gold at AISC $1,360-1,510/oz.
- McGrath (MEA) +31.58% reports FY underlying EBITDA $3.7m vs ($6.4m) a year ago. NPAT ($0.7m) vs year-ago ($9.7m). Revenue $91.7m vs $82.7m a year ago. Given the uncertain economic environment and conserving cash for business reinvestment, the board has decided to not pay an FY20 dividend. No debt, $17.3m in cash and $30.2m in net assets as at 30-Jun. Outlook: While dwelling prices are expected to decline over coming months, the government stimulus packages, support by the banking community and record low interest rates, are likely to cushion the extent of decreases. Some softness in rents is likely to continue through the uncertain economic conditions expected throughout FY21.
- Ramelius Resources (RMS) +0.50% reports FY NPAT $113.4m vs $98m expected. Revenue $460.6m vs $484.9m expected on four estimates. EBITDA $256m vs $230.4m expected. Final dividend 1 cps, fully franked. Record 2-Sep; Payable 2-Oct.
- Chorus (CNU) +2.33% Full-year NPAT NZ$52m vs consensus NZ$55.8m. Revenue NZ$959m vs consensus NZ$963.4m. EBITDA NZ$648m vs guidance NZ$640-655m and consensus NZ$650.1m. FY20 gross capex NZ$663m vs guidance NZ$610-$650m. FY20 final dividend 14c, fully imputed. In FY21 expects, EBITDA in the range of NZ$640-660m. Gross capex in the range of NZ$630-$670m. Sees dividend of 25c and from FY22, will transition to a dividend policy based on a pay-out range of free cash flow.
- Reliance Worldwide (RWC) +17.77% Full-year adjusted NPAT $130.3m vs consensus $121.7m. Revenue $1.16bn vs consensus $1.13bn. Adjusted EBITDA $251.3m vs consensus $241.8m. Final dividend 2.5c vs 5c year ago. Restructuring and continuous improvement initiatives are expected to deliver $25m reduction in costs on a run-rate basis by the end of FY21. Sees Capex between $35m and $55m in FY21.
- Boral (BLD) +0.55% Results due Friday, expects EBITDA ex-items $820-825m vs consensus $851.8m. NPAT ex-items $175-180m vs consensus $203.2m. Expects to announce non-cash impairment charges of $1.35bn.
- G8 Education (GEM) -4.64% H1 NPAT -$239.2m vs year-ago $19m. Includes impairment charge of $237m, the company previously guided a tax impairment charge of $230-$250m. Revenue $308.6m vs consensus $339.4m. EBIT $29m ex-items vs consensus $22.2m. Dividend policy remains temporarily suspended to preserve cash. A combination of the group’s net debt position, lender support and covenant relaxations until December 2021, provides substantial financial flexibility to withstand a prolonged downturn. Notes current occupancy levels of 69% are solid, given the ongoing uncertainty and market volatility.
- Clean TeQ (CLQ) –6.45% Full-year NPAT -$17.7m ex-items vs consensus -$10.1m. Revenue $1.8m vs consensus $1.5m. Statutory NPAT -$197.5m vs year-ago -$17.9m. Impairment expense of $179.2m recorded against the assets of the company’s metals cash generating unit including the Sunrise Nickel-Cobalt-Scandium Project. Net tangible assets per security fell from 30.56c to 5.16c. No dividend.
- Infomedia (IFN) –5.75% Full-year NPAT $18.6m vs guidance of $18-19m and consensus $18m. Revenue $94.6m vs guidance of $93-95m and consensus $94.4m. EBITDA $46m vs consensus $45.9m. Cash EBITDA $21.3m vs year-ago $19.1m. Final dividend 2.15c/share, partially franked. Softer revenue growth than experienced in recent periods is anticipated in 1H21. COVID-19 related restrictions are expected to delay sales converting to revenue. The focus over the coming months will be pursuing acquisitions, investment in core products, implementing delayed rollouts, training and installations and continuing contract negotiations delayed in the last quarter of the financial year.
- BSA (BSA) – Full-year underlying NPAT $9.9m vs year-ago $12.8m. Revenue $490.4m vs year-ago $469.8m. Underlying EBITDA $25.9m vs year-ago $24.6m. Final dividend 0.5c. Whilst demand for core essential services remain robust, discretionary client spend in some sectors (e.g. Retail, Education) remains low and some uncertainty continues. Targeting profitability growth in FY2021 but is unable to provide guidance.
- Australian Unity Office Fund (AOF) –0.87% Full-year funds from operations (FFO) 17.0c vs year-ago 17.5c. Statutory NPAT $13.3m vs year-ago $44.8m. Net tangible asset (NTA) per unit 272c vs year-ago 279c. Final distribution 3.0c, taking full year distribution to 15.c. In FY21, expects distribution of 15.0c.
- Tabcorp (TAH) -0.14% Completes institutional component of its entitlement offer, raising $371m at 325c/share. 97% take-up rate.
- Monash IVF Group (MVF) –7.94% Full-year adjusted NPAT $14.4m vs guidance of $14.0m and consensus $13.5m. Revenue down 4.3% to $145.4m vs consensus $134.7m. Adjusted EBITDA $34.8m vs consensus $31.2m. No final FY20 dividend has been declared. The Group’s strong balance sheet positions it well to navigate through the COVID-19 pandemic. Total Australian patient treatments fell 5.6% in FY 2020 to 13,149. The group said it is seeing a strong recovery in Australian IVF volumes over June and July with industry fundamentals still strong.
- Bubs (BUB) –4.86% Bubs and JV partner Beingmate enter a memorandum of understanding (MOU) to manufacture Bubs China label goat infant formula locally in China.
- iSentia Group (ISD) –10.20% Full-year underlying NPATA $7.7m vs consensus $6m. Revenue $110.3m vs consensus $109.5m. Adjusted EBITDA $20.9M vs company guidance $20-21m and consensus $21.2m. Despite the economic uncertainty, ISD expects both the media intelligence sector and its subscription model to remain resilient.
- oOh!media (OML) +17.51% H1 underlying NPATA -$16.9m vs $18.2m year ago. Revenue down 33% to $205m vs year-ago $304.9m. Adjusted EBITDA $10.8m vs year-ago $56.0m. OML said trading has continued to build through August but still remains at 60% of last year’s levels. It said it would not provide earnings guidance for the rest of the year given the uncertain trading conditions.
- Centuria Industrial REIT (CIP) -2.17% Completes retail entitlement offer, raising $104m. Participation rate 32%.
- Emeco Holdings (EHL) – To launch $149m equity raising at 85c/share. Announces the repayment of 44% of its March 2022 secured notes, reducing EHL’s secured notes outstanding from $442m to $250m and saving $19m of cash interest p.a. The initiatives will significantly reduce gross debt and net leverage ratio to 0.9x, strengthening its balance sheet.
- GDI Property Group (GDI) –0.47% Full-year funds from operations (FFO) $44.5m vs year-ago $48.3m. Revenue $70.3m vs year-ago $77.8m. Net tangible assets (NTA) per security of 130c was up 4c from a year ago, but down 2c from its NTA of 132c in December. Final distribution 3.875c. Anticipates the total relief provided to tenants in FY21 will be less than FY20.
- SomnoMed (SOM) +5.48% Full-year underlying EBITDA $4.7m vs consensus $4m. Including government assistance during Q4 of $2.2m. NPAT $0.1m vs consensus $0.6m. Revenue $57.3m, in line with preliminary announcement. Trading in H1 FY21 is expected to be difficult and largely inconsistent across the 28 countries operated in, with forecasting accuracy likely to remain affected by ongoing COVID-19 related restrictions and their implications. H2, however, should show stronger signs of growth and continued margin expansion.
NZ’s PM Jacinta Ardern is keeping Auckland in lockdown for four days longer until CV19 is under control.
- Tencent has a big run after White House officials have reassured US businesses that the ban on WeChat app won’t be as tough as some had feared.
- The Philippines is negotiating with 16 manufacturers of potential Covid-19 vaccines to procure supplies needed to battle Southeast Asia’s largest outbreak.
- South Korea added 266 coronavirus cases in 24 hours, down from 397 a day earlier.
- Mexico reported 3,948 new confirmed Covid-19 cases, bringing the total to 560,164, deaths rose 226 to 60,480.
- France reported 4,897 new cases, the largest increase since the previous peak in mid-April.
- European markets set to open modestly firmer.
- Kellyanne Conway is set to leave Trumps administration to spend more time with her family.
- President Trump said a treatment involving blood plasma donated by recovered Covid-19 patients will be expanded under an emergency authorisation by U.S. regulators on Sunday, saving “countless lives.” POTUS says ‘Deep State’ conspiring to slow down vaccine.
- Short selling hits 15 year low on US.
- US Cinemas reopen. Our Russ back at the box office.
- Trump has said US does not have to do business with China, it could decouple.
And finally………………Thanks to Stephen Holland king of the dad joke.
The pandemic continues to wreak havoc on employment. Just read that Quasimodo has been sacked from Notre Dame Cathedral. Luckily he’s not bothered, he got a lump sum and back pay.
Just finished a fascinating book on secret societies. Did you know there’s a group trying to control all the world cheese?
Yes, it’s The Hallouminati.
Italian Altar Boy Confession
Bless me Father, for I have sinned. I have been with a loose girl.”
The priest asks, “Is that you, little Joey Pagano?”
“‘Yes, Father, it is.”
“And who was the girl you were with?”
“I can’t tell you, Father. I don’t want to ruin her reputation.”
“Well, Joey, I’m sure to find out her name sooner or later so you may as well tell me now. Was it Tina Minetti?”
“I cannot say.”.
“Was it Teresa Mazzarelli?”
“I’ll never tell.””Was it Nina Capelli?”
“I’m sorry, but I cannot name her.”
“Was it Cathy Piriano?”
“My lips are sealed.”
“Was it Rosa DiAngelo, then?”
“Please, Father, I cannot tell you.”
The priest sighs in frustration. “You’re very tight lipped, and I admire that. But you’ve sinned and have to atone. You cannot be an altar boy now for 4 months. Now you go and behave yourself.”
Joey walks back to his pew, and his friend Franco slides over and whispers,
“What’d you get?”
“Four months vacation and five good leads!”
If people from Poland are called Poles!
Why aren’t people from Holland called Holes?