Yovich & Co. Market Update - 16 August 2018

Aug 16, 2018 | Commentary

Property for Industry Ltd

Profit for June half year was $29.6m, helped by valuation gains of $7.9m from positive leasing activity and cost savings from last year's move to internalise management. Reduction in management fees lowered expenses by $2.9m.

Second quarter dividend of 1.8c is payable 31 August.

Keytone Dairy

KTD listed on the Australia Stock Exchange on 18th July after an initial public offering at 20c AUD per share which was heavily oversubscribed.
KTD has traded between 25c and 38c with current price 31.5c.

Keytone's milk powders and other products are sold to leading supermarkets, retail chains, Dairy producers and other customers under its own brands as well as in private label brands, primarily in New Zealand and China along with Taiwan, Japan, Malaysia, South Korea and the Pacific Islands. Keytone's three proprietary brands being KeyDairy, KeyHealth and FaceClear.


Net profit after tax for June year was $169.9m compared to $44.9m last year.
Key drivers are strong growth in international business, continued growth in Auckland (3.2%), improved performance in Adelaide (0.6%) and effective cost management at the properties.
Dividends of 13.89c payable 14 September and expected full year minimum of 20c.


Summerset reported a net profit of $82.0 m for the six months through June; down from $90.3 m. Sales volumes falling short of year-ago levels and property valuation gains were smaller than in the same period of 2017.
Will target 450-500 units delivery in FY19 with this being delivered across essentially six sites, and it is possible the delivery will include 100 units in each of Ellerslie, Christchurch and Hamilton.
Dividend of 6c payable 10 September, 12-month target price increases from $7.44 to $7.63.


Tax paid profit for June year was up 2% at $62.2m. Final dividend of 15.25c fully imputed is payable 2 October. Gross dividend yield is 7.43% on current price of $7.54.
Freightways is regarded as a domestic economic growth story. Freightways is targeting year-on-year earnings growth in FY19. Express Package volume has tracked at above trend growth rates in recent periods, with the B2B category benefiting from a supportive economic environment.
Two revenue streams for FRE are Express Package and Information Management. Both had increases of 6.5% and 6.7% respectively from FY17.

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Walter Yovich

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Property for Industry Ltd PFI.nz Keytone Dairy KTD.asx SkyCity SKC.nz Summerset SUM.nz Freightways FRE.nz


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