Yovich & Co. Market Update - 17 September 2018

Sep 17, 2018 | Commentary

Sheffield Resources

The Northern Australia Infrastructure Facility Board has made an Investment decision to offer financial assistance to support the development of the Thunderbird Mineral Sands Project, via the provision of long-term debt facilities totalling $A95 million.

Marsden Maritime Holdings Ltd

Net profit after tax for the year ending June is $9.3m, a decrease of 6.35%, compared to last years $10.05m. This was affected by a lower revaluation of the Company's investment property assets.

The introduction of seasonal container ship service by Mediterranean Shipping Company (MSC) has increased the volume of business. This service will now operate year round, this is a boost to Northland exporters.

The final dividend of 9c per share paid on 14th September brings total gross dividend yield to 4.3% at current share price of $5.10.

Kathmandu

Net profit after tax for the year ending June is $50.5m, an increase of 32.9%, compared to last years $38m.

Kathmandu‘s purchase of Oboz Footwear Company has increased the Net Debt to Equity ratio from 2.1% to 6.9%, due to taking on 22% more debt.

The final dividend of 11c per share paid on the 30th November brings total gross dividend yield to 5.8% at a current share price of $3.28.

Jupiter                                                                                                                                      

Jupiter has announced a AUD 5c per share dividend payable on 10th October. At current share price of AUD 37c Jupiter provides investors with a 13.5% dividend yield.

We can assist in the conversion of AUD dividend payments to NZD.

Synlait Milk

Net Profit after tax for year ending June is $74.6m, an increase of 88%, compared to last years $39.5m.

An increase in cash spent on investment activities, such as the building of a new factory in Pokeno, has increased the Net Debt to $114.9m compared to $82.6m last year. This resulted in a Net Debt gearing ratio of 20.9% compared to 18.7% the previous year.

Hybrid Fixed Interest

Fixed interest hybrids are less volatile than shares but have higher returns than Vanilla Bonds. Since the Reserve Bank’s announcement of holding the OCR at 1.75% on the 9th August, expectations are that interest rates will not be increasing in the near future. The below list of Fixed Interest hybrid investments have a 1-year resetting feature which ensures that once interest rates start increasing the return on these investments will also rise.  

Hybrid bonds

Source: Thomson Reuter, FNZC Fixed Interest Monthly

(ASBPA) has a redemption date of 15 November 2023 with a yield to redemption of 6.2%pa.

Prepared by Walter Yovich and Nathanael McDonald

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Nathanael McDonald



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Hybrid Fixed Interest Synlait Milk Jupiter Kathmandu Marsden Maritime Holdings Ltd Sheffield Resources SML.NZ JMS.ASX KMD.NZ MMH.NZ SFX.ASX



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