Yovich & Co. Market Update - 17 April 2019

Apr 17, 2019 | Commentary

Market News



In summary, the NZX50 had 25 companies on the downside, 6 remained unchanged, and 19 companies were on the upside. Last week the NZX index had 4 days of losses, with Friday gaining 0.6% to help claw back some of the week’s losses. As the Auckland property market has signs of cooling, Summerset, Ryman Healthcare and Metlifecare share prices all dipped early last week. They all showed a sign of recovery on Friday with share prices increasing slightly.




Restaurant Brands closed at $9.15 on Friday an increase from the close of $8.21 on 1 April; this day completed the 75% partial takeover by Finaccess Capital. Shareholders received a payout of $9.45 per share for 75% of the Restaurant Band shares. Current share price is at $8.65, target price of $7.65.

New Zealand Equities
Methven Ltd

GWA Group Limited takeover of Methven was completed on 10 April. For each Methven share held on the record date 3 April 2019 a payment of $1.60 per share, plus a gross dividend of 4.69 cents, was paid on 10 April. If you need to find a new home for these funds see your Adviser at Yovich & Co for some sound investing advice.

AFT Pharmaceutical

AFT Pharmaceuticals develops, licenses, and sells a range of medical products globally, and has completed another three deals. Painkiller Maxigesic IV® is now licensed in Mexico together with Maxigesic® tablets in Switzerland and Cyprus. The International expansion will increase sales; this should see contribution to earnings growth from 1HFY20. Currently performance metrics are not desirable. Expected net profit after tax is forecast to be in the black at $4.2m for the FY2020. Current share price is $1.70, target price $ 2.77.

Oceania Healthcare

Produced its development update last week, stating that its portfolio focus is on Aged Care while optimising efficiency by increasing the proportion of Retirement Villages Units and Care Suites. FY19 will see 272 new units and beds at The Bayview, Meadowbank, and The Sands on time and on budget, along with the management of a further 6 projects with 389 units and beds under construction. At current share price of $1.02, gross dividend is 4.6% and a target price of $1.11.

a2Milk Company

Tax paid profit for the 1H19 ending was up at $152.7m (55%). Cash on hand has decreased – 15% due to the additional investment in Synlait and currently is $287.9m. The focus for the 2H19 and FY20 is to increase investment in marketing and brand awareness activities predominantly in China and US. Current share price is $15.77 with a target price of $14.00.


Provides highly secure & accurate service for managing and paying road user charges, and providing a number of other regulatory functions and commercial services for truck and fleet operators. Its service has been approved in NZ and Oregon (US). As of recently a small sales team is now active in Australia, with the outcome from this venture expected to affect results in FY20. Unit sales for the Q4 FY19 is up 6% on last quarter with annualised growth up 24%. Current share price is $2.68 with a target price of $3.25.


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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Weekly Update Investment Shares Bonds Investment Strategy Investment Advice Share Advice Share Investment Investing in Shares Methven Limited MVN.nz AFT Pharmaceutical AFT.nz Oceania Healthcare OCA.nz a2Milk Company ATM.nz Eroad ERD.nz Restaurant Brands RBD.nz


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