ASX 200 up 13 points to 7503 (0.2%)
- HIGH 7524 Low 7496. Very narrow range.
Winners: NAN OML UWL SYA PPM HUB PDN
Losers: KGN MND ASB ANN MMS NHF SGF
- POSITIVE SECTORS: Iron ore miners. Gold. Base metals. Energy
- NEGATIVE SECTORS: Defensives. Consumer staples. Telcos.
- BIG BANK BASKET: Unchanged at $181.6
- ALL -TECH INDEX: Unchanged APT up 1.6%
- GOLD: Steady at AUD $2493
- BITCOIN: US$49398 Off highs.
- AUD: Firms to 72.27c. 10-YEAR YIELD: Rallies to 1.14%
- ASIAN MARKETS: Tokyo up 1.0% Hong Kong up 1.6%, China up 1.0%.
- US FUTURES: Dow futures up 67. NASDAQ up 33
ASX 200 once again higher with a 13-point gain to 7505 (0.2%). Miners and energy stocks driving the market higher as banks and industrial defensive saw profit taking. The Big Bank Basket unchanged with insurers and other financials holding firm. Big miners rose with BHP up 1.0%, FMG and RIO all in the green. Gold miners too doing well, NCM up 1.2% and NST up 2.0%. Energy shares fuelled up and off, STO up 3.2% and WPL up 3.2%. Healthcare soggy as RMD came under some pressure, down 3.0% and WES, WOW and COL all fell hard. Travel stocks doing well despite numbers tracking higher. FLT up 6.7%, WEB up 6.5% and QAN up 5.5%. Results again dominated with MND down 14.4% on staffing and cost issues, KGN smashed 15.8% on inventory issues, ANN fell foul, down 9.2% as CV19 bites and BLD canned its dividend and rocked 5.6% lower. On the positive side NAN had a good second half and rose 22.0%, UWL did well up 8.4% and HUB proved platform power rules, up 7.4%.
STOCKS ON THE MOVE
- OML +10.73% positive broker comments.
- FLT +6.66% WEB +6.48% QAN +5.48% SYD +0.26% miss out.
- SYA +8.33% OTCQB listing in US.
- NAN +21.90% good second half.
- MND -14.42% FIFO not working well.
- KGN -15.77% inventory levels and no dividend.
- ASB -13.15% results weigh.
- NHF -7.18% brokers turn negative.
- IDT -8.03% profit taking.
- RPM -1.43% hits red line.
- ONT +13.96% private equity takeover.
- MNF +10.54% results cheer.
- EM2 +15.62% investor webinar yesterday.
- GNG +10.65% results.
- EVT +6.42% broker upgrades.
- PPM +7.69% beats prospectus.
- WBC +0.50% fined $10.5m for super roll ins.
- IPO of the Day – Kuniko Limited (KNI) +325.00% VUL spin off of Norwegian metals explorer. Big volume.
- Speculative Stock of the Day: Azure Minerals (AZS) +32.79% investor presentation. Andover Ni-Cu project the focus.
- Ansell (ANN) -9.19% Full-year EPS US$1.92 vs guidance of US$1.92-2.02 and consensus US$1.99 (EPS would have been 193.9c, without Cloud Computing accounting policy change). Revenue US$2.03bn vs US$2.01bn. Final dividend US$0.436/share. FY Guidance (Jun 2022): EPS US$1.75-1.95. It is anticipated that net interest expense will be in the range of US$20.0-21.0M and the effective tax rate will be 22.0-23.0%. There will be increased software investments in FY22 where a portion will now be immediately expensed rather than capitalised and amortised pursuant to the new cloud computing accounting policy resulting in (US5-6c) adverse EPS impact.
- Perenti Global (PRN) -5.85% Full-year underlying NPATA $77.0m vs consensus -$24.4m. Revenue $2.02bn vs consensus $2.04bn. Final dividend 2c. FY Guidance (Jun 2022): Revenue $2.0-2.2bn and EBIT $165-185m.
- HUB24 (HUB) +7.43% Reports Full-year underlying net profit $15.0m vs consensus $18.0m. Revenue $110.9m vs consensus $130.5m. Group underlying EBITDA $36.2m vs consensus $35.8m. Statutory net profit $9.8m, +20% on the year. Platform net flows $8.9bn, +82% on the year. Final dividend 5.5cps, fully franked. Full-year 2023 guidance: Platform Funds under management target (excluding PARS) $63-70bn
- Monadelphous Group (MND) -14.42% Reports Full-year Net profit $47.1m vs consensus $54.4m. Revenue $1.95bn vs consensus $1.83bn. EBITDA $108.7m vs consensus $111.0m. Announces a final dividend 21cps, fully franked. Outlook: Full-year 2022 revenue likely to be lower due to timing of new major projects. Stronger construction activity forecast in FY23.
- SRG Global (SRG) – Reports Full-year adjusted EBITDA $47.1m vs guidance $45-47m. Revenue $569.5m vs year-ago $551.2m and consensus of $595.3m. Statutory net profit $12.1m vs year-ago -$29.7m. Final dividend 1cps, fully franked. FY22 guidance: Expects EBITDA growth ~15% on the year. Record work in hand of $1bn with an opportunity pipeline of $6bn.
- Austal (ASB) -13.15% Reports Full-year EBIT $114.6m vs guidance of $112-118m and consensus $114.2m. Revenue $1.57bn vs guidance $1.55bn and consensus $1.55bn. Net profit $81.1m vs consensus $78.7m. Order book $2.50bn running through until FY25. Final dividend 4.0c/share, unfranked. FY Guidance (Jun 2022): Revenue $1.50bn vs consensus $1.50bn. Anticipates that the COVID-19 situation will remain dynamic in FY22, with subsequent uncertainty surrounding the broader macroeconomic impacts on the business. Therefore, the company has resolved not to provide EBIT guidance for FY22 at this point in time as with FY21.
- Estia Health (EHE) +3.57% Reports full-year net profit $6m vs consensus $7.7m. Revenue $612.1m vs consensus $636.1m. Mature homes EBITDA $62.5m vs year-ago $82.8m. Group occupancy at Mature Homes averaged 91.2% during the period: Dividend reinstated: Final Dividend of 2.3 cps (fully franked), 100% of net profit.
- Alumina (AWC) +1.82% First half profit US$69.2m ex-items vs year-ago US$87.5m. Net receipts from AWAC US$137.0m vs year-ago US$89.9m. Interim dividend US3.4c/share, up 21%. Significant shipping disruptions and higher freight costs constrained alumina prices.
- McMillan Shakespeare (MMS) -8.67% Full-year underlying NPATA $79.2m vs consensus $79.2m. Revenue $544.5m vs consensus $489.8m. EBITDA $130.7m vs consensus $124.3m. Final dividend $0.311/share (fully franked). FY22 Outlook: Expects the abnormal trading conditions that characterised FY21 to continue throughout FY22. Strategic focus in FY22 centres on growth and efficiency across the company’s businesses including the integration of the 1-Jul-21 small acquisition of Plan Tracker into Plan Partners. Expects the warehouse to be operational in FY22 to provide longer term strategic and financial benefits.
- Spark Infrastructure Group (SKI) +0.35% First-half look-through EBITDA $402.1m vs year-ago $432.8m. Underlying standalone net operating cash flow $78.1m vs year-ago $110.3m. New 5-year regulatory decisions for both SA Power Networks and Victoria Power Networks are in force from 2021. These new regulatory decisions have put downward pressure on revenues for those businesses, largely due to sustained low-interest rates affecting regulatory returns and the low inflationary environment. The businesses now have revenue certainty for the next 4-5 years under which to operate.
- Nanosonics (NAN) +21.90% Full-year profit $8.6m vs year-ago $10.1m and consensus $4.6m. Revenue $103.1m vs consensus $99.0m. EBIT $10.8m vs year-ago $11.6m and consensus $3.9m. FY22 Outlook: Double digit revenue growth, gross profit margin >75% and operating expenses $90m.
- Oil Search (OSH) +2.97% First-half core profit US$139m vs year-ago US$24.7m and consensus US$90.0m. Revenue US$667.7m vs year-ago US$625.6m and consensus US$632.0m. Interim dividend of US3.3 cps, representing a payout of 49% of NPAT. On track to meet previously stated production and cost guidance and to deliver a strong 2021 full year result. Dividends for the full year are expected to be within Oil Search’s target payout ratio of 35 to 50% of core net profit after tax.
- VGI Partners (VGI) +3.89% First-half normalised profit $42.9m vs year-ago $9.9m. Revenue $72.8m vs year-ago $13.6m. Performance fees $50.4m vs year-ago $0.1m. Interim dividend 31c.
- Boral (BLD) -5.55% Full-year underlying profit $251m vs consensus $290.0m. Revenue $5.35bn vs consensus $5.32bn. EBIT $445m vs consensus $434.7m. No final dividend will be paid. FY22 Outlook: The company expects the current uncertain and mixed market conditions in Australia to continue in FY22. Uncertainty across all geographies and market segments remains. BLD is focusing on the things it can control including targeting FY22 transformation benefits of ~$60-75m net of inflation.
- MNF Group (MNF) +10.54% Reports Full-year underlying Net profit $19.2m vs year-ago $16.6m. Revenue $218.7m vs year-ago $230.9m and consensus of $233.6m. EBITDA $43.1m vs company guidance $40.0-43.0m. Dividend A$0.043/share, fully franked. Outlook: No immediate impact to business due to lockdowns, July 2022 trading was positive and showed growth.
- Scentre Group (SCG) +6.67% Reports first half funds from operation $463.4m vs year-ago $361.9m. Net property revenue $1.06bn vs year-ago $878.0m. Operating profit $460.1m vs year-ago $360.8m. Net profit $411.2m vs year-ago -$3.66bn. Distribution for the six-month period 7.00 cps. Outlook: The Group continues to target a distribution of 14 cents per security for the year to 31 December 2021. This is based on the assumption that the current government restrictions substantially ease by the end of October 2021.
- AMA Group (AMA) -7.29% Reports Full-year normalized EBITDAI $71.5m vs year-ago $53.2m. Revenue $919.9m vs consensus $925.3m. Net profit -$99.1m vs year-ago $7.1m. To ensure the group is adequately capitalised and able to realise investment opportunities, management continues to explore a range of funding options. The board has not declared a final FY21 dividend. Outlook: COVID-19 impacts expected to continue throughout 1H22. In mid-August, weekly National volume averages for Drive and Non-Drive show approximately 35% and 25% unutilised booking capacity on a normalised basis respectively. Currently undertaking a capital structure review in order to manage the short-term disruptions associated with COVID-19, as well as to best position for growth.
- Monash IVF Group (MVF) +3.66% Full-year adjusted profit $22.9m vs consensus $23.3m. Revenue $183.6m vs consensus $175.4m. Final dividend 2.1c. FY Guidance (Jun 2022): Strong industry growth in FY21 is expected to be maintained in FY22. Confident revenue and earnings can grow in FY22.
- Western Areas (WSA) -3.80% Full-year profit -$7.7m vs consensus -$10.0m. Revenue $257.2m vs consensus $259.6m. EBITDA $73.5m vs consensus $63.2m. Outlook: First ore from Odysseus on target this September quarter and offtake tender Repeats FY22 production guidance: Nickel tonnes in Concentrate Production 16-17Kt. Unit Cash Cost of Production (Nickel in Concentrate) $4.25-4.65/Ib.
- Kogan.com (KGN) -15.77% Full-year adjusted EBITDA $61.1m, in line with the preliminary announcement. Revenue $780.7m, in line with the preliminary announcement. July 2021 unaudited management accounts show: Gross sales growth of 5.1% above July 2020. Gross margin improvement on June 2021, while below July 2020. The first 18 days of August have shown a strong acceleration above July performance, with gross sales 24.5% above July, and gross profit 25.0% above July for the equivalent number of days.
- Uniti Group (UWL) +8.40% Full-year underlying profit $53.4m vs consensus $50.2m. Adjusted EBITDA $93.7m vs consensus $87.2m. Revenue $160.5m vs consensus $169.9m. Outlook: FY21 Exit run rate (Jun-21 annualized) revenue $218m, underlying EBITDA $133.4m and Free Cash Flow after growth capex of $90.7m. Management sees continued earnings growth, with continuing high cash generation.
- Johns Lyng Group (JLG) -5.81% Full-year normalised EBITDA $52.6m vs guidance of $52.1m and consensus $52.3m. Revenue $568.4m vs consensus $561.1m. Final dividend 2.8c/share, fully franked. FY Guidance (Jun 2022): Adjusted EBITDA $60.1m, revenue $635.4m. Strong business as usual job registration pipeline.
ECONOMIC NEWS/ BOND MARKETS
- Consumer confidence rose 0.5% last week, driven by increases in SA and WA and a rebound in Brisbane as restrictions were eased in parts of Queensland.
- Vaccine Tracker: 4.98bn in 183 countries. 36.1m a day.
- In Australia, 258,818 doses on average a day. 3 months to cover 75% of the population.
- US taking some comfort from the viral surges never last longer than two months.
- US VP Kamala Harris makes keynote policy on US/Asia engagement.
- U.S. offering to host APEC summit in 2023. Harris accused China of coercion and intimidation over its vast territorial claims in the South China Sea. Harris leaves Singapore today for Vietnam.
- Cathie Wood buying and Tencent’s buy back has given reasons to be cheerful as the Hang Seng Tech Index rose as much as 5%.
- The PBoC chief has vowed to stabilise the supply of credit and boost its support fro smaller businesses.
US AND EUROPEAN NEWS
- European futures pointing to a slightly firmer open.
- Bosch opens a new Semi-Conductor facility in Dresden. Expects chip demand to surge dramatically.
- Walmart will deliver other merchants’ goods.
- Any extension to the Afghan evacuation deadline looks unlikely.
My mate had two toes cut off in an accident at work. When he showed us his foot I have to be honest and say I felt really unwell. I think I’m ‘lack toes in tolerant’?