Yovich & Co. Market Update - 12 November 2018

Nov 12, 2018 | Commentary

2018 11 16 week market update 
 
 
 
   
 
 

New Zealand Equities

In summary, the NZX50 had 12 companies on the downside, 2 remained unchanged and 36 companies on the upside. The biggest movers of the week were Pushpay -7.88%, NZX -2.80%, Ryman -2.30% and Auckland Airport -1.46% on the downside, with Z Energy 12.16%, ANZ Banking Group 6.21%, Trade Me 5.79% and The NZ Refining Company 4.7% on the upside.

On 7 November the Reserve Bank of NZ announced that the Official cash rate will remain unchanged at  1.75% and will expect to keep this level through 2019 into 2020.

Infratil

Infratil is an owner and operator of business in the renewable energy, airport, and public transport sectors. The tax paid profit for the half year ending 30 September is up 8% at $106.1m from $97.7m the previous half year.

A current net surplus of $58.5m is a 47% increase on last years $39.7m. Intratil’s full-year earnings guidance for FY2019 is now in the range of $508-$620m.

Total debt/capital ratio is 31.5% up 0.5% from 31 March.

A dividend of 6.25c per share carrying a 1.5c imputation credit per share is payable 14 December. This brings total gross yield for the year to 6.49% at the current share price of $3.49.

The Infratil and Mercury takeover offer for Tilt Renewables is now extended until 30 November. At present 84.44% of the required 90% of shareholders have accepted the offer.

Sheffield

Announcement of two key signing agreements which will substantially advance and de-risk the development of Thunderbird Mineral Sands Project:

1)        A$366m fixed price, lump sum engineering, procurement and construction (EPC) contract with GR Engineering Services Limited (GRES) (ASX: GNG) for the design and construction of the Thunderbird mineral processing plant, supporting infrastructure and associated facilities (EPC Contract);

 

2)       US$175m (A$240m1) fully underwritten, syndicated facility agreement with Taurus Mining Finance Fund and Taurus Mining Finance Annex Fund (Taurus) for a seven-year term loan (Facility Agreement).

The agreements provide significant certainty of funding, execution and delivery of Thunderbird.  

ResMed

ResMed is a global company involved in the development, manufacturing and marketing of medical products for the treatment of respiratory disorders, focusing on sleep-disordered breathing.

The acquisition of the US software company MatrixCare for US$750m will enhance Resmed’s cloud-based connected care offering, this will allow health care providers to leverage data analytics to improve the quality of care.

First NZ Capital’s target price is A$15.10, the current share price is A$14.32. This quarter’s dividend of 3.56c is 

CSL Limited

CSL is a global biotechnology company that develops and delivers innovative medicines that save lives, protects public health and helps people with life-threatening medical conditions live full lives.

CSL currently has a significant opportunity in the transplant market. CSL C1-INH Berinert is to be used in assisting in the treating of antibody-mediated rejection following kidney transplantation.

First NZ Capital’s target price is  A$230, current share price is A$191.02. 

 

Disclaimer: This publication has been prepared for your general information. While all care has been taken in the preparation of this publication, no warranty is given as to the accuracy of the information and no responsibility is taken for any errors or omissions. This publication does not constitute financial or insurance product advice. It may not be relevant to individual circumstances. Nothing in this publication is, or should be taken as, an offer, invitation, or recommendation to buy, sell, or retain any investment in or make any deposit with any person. You should seek professional advice before taking any action in relation to the matters dealt within this publication. No part of this publication may be reproduced without prior written permission from our company. Disclosure statements relating to the financial advisers associated with this newsletter are available on request and free of charge.

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Nathanael McDonald



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