ASX 200 up 30 to 7535.
- HIGH 7556 LOW 7507 Month-end brings buyers.
Winners: AVZ, CUV, LTR, DGL, IMU, DUB, CMM, APX
Losers: MSB, EOS, SYA, NVX, ADT, SM1, MGH, WOR
- POSITIVE SECTORS: Healthcare. Tech. Industrials. Banks
- NEGATIVE SECTORS: Iron ore miners. Energy
- BIG BANK BASKET: Falls slightly to $181.52
- ALL -TECH INDEX: Up 1.7%. APT up 1.7%
- GOLD: Drifts to AUD2480
- BITCOIN: Eases toUS$47207
- AUD: Rises to 73.37c
- 10-YEAR YIELD: Drifts to 1.15%
- ASIAN MARKETS: Tokyo up 0.54%, Hong Kong down 0.04%, China up 0.26%
- US FUTURES: Dow futures up 118, NASDAQ up 56
ASX 200 put in a postive day up 30 (+0.41%) to 7535 as month end window dressing helped. Last day of reporting season with a collective sigh of relief all around. Industrials today were the stars as EDV rose 4.4%, WOW up 0.8%, WTC up 5.7% and REA doing well up 1.8%. Healthcare was a big source of points with CSL up 0.5% and RMD bouncing back 3.3%. Banks were a little overlooked as were iron ore plays, although base metals were in fashion and uranium doing very well, SLX up 18.5% and BMN up 9.4%. Corporate results eased with HVN easing back 3.2% on it numbers, DUB doing well up 9.0% and DGL impressive results up 9.3%. On the downside MSB fell 15.9% on its results, more a money pit than results, AXE eased 7% after a ASX query too. Weekly consumer confidence was little changed last week, up 0.2% despite higher COVID-19 case numbers in NSW and Victoria. Vaccination momentum was labelled as one reason for the modest improvement.
STOCKS ON THE MOVE
- DUB +9.04% strong numbers.
- DGL +9.30% stand out result. Broker upgrades.
- APX +6.97% Blackstone substantial holder.
- WTC +5.73% broker upgrades.
- LTR +9.55% 260 Spin out helping.
- BMT +20.41% acquisition seen as positive.
- POS +8,33% drill results.
- SLX +18.48% uranium back in fashion.
- EM2 +11.49% drilling update.
- PGL -11.22% broker downgrades.
- DTC -4.04% falls resume.
- TNT -9.43% interest wanes.
- CPH +8.33% merger update and Nasdaq listing.
- BMN +9.38% DYL +12.86% uranium back.
- ABB +6.67% everybody loves this one.
- AVZ +11.36% lithium and tin project finding favour.
- APT +1.72% follows Square higher.
- RMD +3.32% back above $40.
- Speculative Stock of the Day: Pan Asian Metals (PAM) +120.00% geothermal Li and Hard Rock Li-Sn initiative in Thailand. Another VUL.
- Sandfire Resources (SFR) – unchanged – Reports Full-year net profit $171.6m vs consensus $191.9m. Revenue $813.0m vs consensus $810.3m. Group EBITDA $449.8m vs consensus $485.5m. FY dividend 26cps. Maintains FY22 guidance: 64-68kt of contained copper, 30-34koz of contained gold, C1 $1.00-$1.10/lb.
- Harvey Norman Holdings (HVN) -3.24% Full-year profit after tax & non-controlling interests $841.4m vs year-ago $480.5m. Total aggregated company-operated and franchisee revenue $9.49bn, +15.3% vs a year ago (comp 13.9% y/y). EBITDA (ex-AASB) $1.15bn vs year-ago $742.5m. Fully-franked final dividend 15.0c Chairman comments: “With the exception of Malaysia which was significantly affected by the lockdowns during this period, these reflect a continued elevated customer demand with solid headline sales growth rates ahead of the comparable period in July and August 2019.”
- Yojee reports (YOJ) -8.33% FY net profit -$11.3m vs year-ago -$6.2m and consensus of -$6.9m. Revenue $1.3m vs consensus $1.1m.
- Regis Resources (RRL) -3.52% Reports full-year net profit $146.2m vs consensus $142.2m. Revenue $819.2m vs consensus $810.1m. EBITDA $403m vs consensus $373.6m. Final Dividend 3cps, fully franked. FY22 Production: Production (oz) 460–515K at All-in Sustaining Costs (ASIC) ($/oz) 1,290-1,365. C1 Cash Costs ex. royalty($/oz) 1,070-1,135. Growth Capital $155-165m. Exploration and McPhillamys $72m.
- MMA Offshore (MRM) -unchanged – Full-year adjusted EBITDA $36.9m vs guidance of $30-35m. Revenue $237.5m vs year-ago $273.0m. Profit $2.4m vs year-ago -$94.2m. The medium-term outlook is positive with increased project activity forecast in its sectors and regions. Short-term impacts of COVID-19 Delta strain are significantly increasing costs and restricting MRM’s ability to execute projects. Q1 is expected to be soft with the remainder of FY22 dependent on the ongoing impacts of COVID-19.
- Regis Healthcare (REG) +5.08% Full-year profit $19.9m vs consensus $16.4m.Revenue from services $701.4m vs consensus $731.2m. EBITDA $137.8m vs consensus $102.0m. Final dividend 4.63c. No guidance.
- Mesoblast (MSB) -15.91% Full-year EPS (USD) -16.33c consensus -14c.Revenue US$7.4m vs year-ago US$32.2m and consensus US$27.2m. R&D expense US$53m vs consensus US$60.5m.
- Bubs Australia (BUB) -2.38% Full-year profit -$74.7m vs year-ago -$7.8m and consensus -$22.0m. Revenue $39.3m vs consensus $41.3m. Adjusted EBITDA -$28.5m vs consensus -$23.2m. Remains confident that the Bubs brand along with route-to-market strategies and sufficient cash reserves will deliver sustained growth in FY22 and beyond. Bubs will pursue its global expansion strategy to consolidate its regional market penetration, and launch into North America.
- Splitit Payments (SPT) -1.11% First-half net income -US$18.8m vs consensus -US$12.2m.Revenue US$5m vs year-ago US$2.6m and consensus US$5.5m. Net cash + merchant receivables – debt payable US$57m. Total liquidity US$178m. Significantly improved margins in H2 and beyond.
- iCar Asia (ICQ) -unchanged- First half profit -$4.9m vs year-ago -$6.1m.Revenue $8.2m vs year-ago $6.3m. Adjusted EBITDA -$3.6m vs year-ago -$4.1m. Has started to see some relaxation of business restrictions in its operating countries in Q321 and this bodes well for a strong recovery of all businesses in the 2H21.
- Westpac Banking (WBC) +0.08% Completes the sale of its lenders mortgage insurance business to Arch Capital Group. As previously reported, the sale was at book value, expected to be ~$350m and added 7bps to Westpac’s common equity Tier 1 capital ratio.
- PointsBet Holdings (PBH) +1.67% Full-year normalized net income -$164.3m vs consensus -$168.2m. Revenue $194.7m vs consensus $195.0m. EBITDA -$156.1m vs consensus -$157.3m.
- Shaver Shop Group (SSG) +4.90% Full-year profit $17.5m vs guidance of $16.8-17.5m. Revenue $213.7m vs guidance of $211-213m. Gross margin 44.3% vs year-ago 41.9%. Final dividend 5.0c/share, fully franked. Net cash of $7.4m at the end of June vs guidance of $6-8m. Trading update (YTD sales from July to August 27): Total Sales -7.3% vs a year ago. Due to the ongoing uncertainties caused by COVID-19 and the importance of the Christmas and Boxing Day week shopping periods to its annual results, Shaver Shop does not currently consider it appropriate to provide FY22 sales and earnings guidance at this time.
- Webjet (WEB) +3.45% Expects it will be operating cash flow positive for 1H22 (excluding investing and debt repayments). The WebBeds business was profitable in July and August and is well on track to be profitable in September. Webjet OTA was profitable for April to July but has been subsequently impacted by the current lockdowns in Australia and New Zealand. Online Republic was profitable in April and May, but like the Webjet OTA, has been impacted by lockdowns. Transformation initiatives are underway, and WEB is on track to cut costs by at least 20% once it gets back to scale.
ECONOMIC NEWS/ BOND MARKETS
- An RBA research paper suggests that wage growth will accelerate once the jobless rate falls below 4%.
- Weekly consumer confidence was little changed last week, up 0.2% despite higher COVID-19 case numbers in NSW and Victoria. Vaccination momentum is labelled as one reason for the modest improvement.
- Building approvals fell 8.6% in July, in seasonally adjusted terms missing mareket estimates of a 5% fall. This follows a 5.5% decrease in June.
- Current account for the June quarter: Surplus $20.5bn below market estimates of $21.4bn. Net exports to detract 1%pt from GDP, in line with expectations.
- Moderna vaccine creates twice as many antibodies as Pfizer.
- Aluminium heading towards decade highs on supply concerns. China trying to rein in emissions as smelters are very energy intensive. 60% of the world’s supply comes from China.
- China has slashed kids game time to three hours a week. Isla Fisher will have to play more at night. Authorities will use facial recognition and ensure real names, to ensure compliance.
- Chinese regulator now looking to crack down on private equity funds.
US AND EUROPEAN NEWS
- European futures showing modest gains. UK back online.
- In the US, QR codes have replaced service staff meaning a permanent loss of jobs.
- EU to move to restrict travel for non-essential US visitors.
- US leaves Afghanistan after 20 years.
- Porsche to open first plant outside Europe, in Malaysia to service needs of local market.
And finally, this is gold…
A husband and wife who worked for the circus went to an adoption agency. The social workers there raised doubts about their suitability.
The couple then produced photos of their 50-foot motor home, which was clean and well maintained and equipped with a beautiful nursery.
The social workers then raised concerns about the education a child would receive while in the couple’s care.
“We’ve arranged for a full-time tutor who will teach the child all the usual subjects along with French, Mandarin, and computer skills.
Then the social workers expressed concern about a child being raised in a circus environment.
“Our nanny will be a certified expert in pediatric care, welfare, and diet.”
The social workers were finally satisfied.They asked, “What age child are you hoping to adopt?”
“It doesn’t really matter … as long as the kid fits in the cannon.