Yovich & Co. Market Update - 7 May 2019
May 7, 2019 | Commentary
In summary, the NZX50 had 13 companies on the downside, and 37 companies were on the upside. On 23 April the NZX50G broke through the 10,000 level closing at a record high of 10,004.48. During the lows of the GFC, the market bottomed out at around 2,418 on 3 March 2009. NZX chief executive Mark Peterson said it was a great milestone for the market and compared well with its global peers. "It represents the significant growth we have seen in the New Zealand market over the past 10 years, with the S&P/NZX 50 up more than 280 percent over that period," he said.
New Zealand Equities
Share price has continued to decline, since the announcement of an expected reduction in net profit after tax from $32m to between $25m to $28m. Sale deterioration of vehicles in the USA market is the primary reason. The New Zealand and Australian markets remain on track with a solid outlook. At current share price of $3.97 gross divided is 7.6%. 12 month target price is $4.57.
Share price continues to rally upwards since the lows in March. The company announced that on 24 May it will release its interim results for the six months ending 31 March 2019. At current share price of $5.75 it is well off its highs of $7.37 in May 2018. Current gross dividend is 3.8%.
Tax paid profit of the FY19 is down at $178m (13%), contributing factors were lower refining margins and record high pump prices which affected retail fuel volumes and margins. Dividend payments are up 33% at 59.72 (gross) cents per share. Shareholders on record date 17 May will receive a gross dividend of 42.36 cents 29 May 2019. At current share price of $6.21 gross dividend is 9.62%. 12 month target price is $6.30.
First quarter sales to 28 April 2019 were up at $150.6m (2.62%), compared to the previous corresponding period. Two new Rebel Sports stores were opened in 2018 in Kerikeri and Christchurch. Both the homeware and sporting segments have increased sales by 2.85% and 2.28% respectively. Briscoe Group has continued to achieve positive sales growth in the competitive retail environment. At current share price of $3.29, gross dividend is 8.44%.
Tax paid profit for the HFY19 is down at $3.1b (24%). This is due to weaker business conditions and the bank dealing decisively with outstanding issues. The New Zealand division has seen strong growth with $555m of cash earnings, a 15% increase on last year. At current share price of $29.00 the gross dividend is 6.88%.
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