Yovich & Co. Market Update - 3 July 2019
Jul 3, 2019 | Commentary
In summary, the NZX50 had 15 companies on the downside, 31 companies were on the upside and 4 unchanged. The markets closed higher on Friday up 1.68% from the previous Friday’s close. The end of June represents the close of the 2nd quarter; the market has increased 6.66% over this period. Investors have been demanding high yielding companies in the infrastructure, utilities, and property sectors while interest rates are at all time lows.
New Zealand Equities
Had a net loss of $17.9m for the FY19 ending 31 March, a 9% improvement compared to a loss of $19.6m for the FY18. Operating revenue is up at 3.8m (12%), total revenue up at 5.1m (3%). PEB is a company that specialises in new superior technology and methods compared to the current procedure of bladder cancer diagnostics. The company is developing and commercialising its range of Cxbladder bladder cancer tests globally through its own central laboratories in NZ and the USA. With markets in NZ, Australia, Singapore and the United States, USA has an estimated addressable market for Cxbladder of $1.2b (EY-Parthenon business review). Current share price: $0.196, 12 month target price: $0.40.
Has released its FY19 ending 31 March update with expected tax paid profit of $10.1m. Abano confirms that its results for FY19 are expected to be in line or above the guidance provided in March 2019. Share price has shot up by 17.14% on the back of this announcement. Final FY19 dividend is expected to be 8 cents per share bringing full year dividend to 24 cents. Current share price: $4.10, Gross Yield: 5.8%, PE Ratio: 8.43.
Sheffield Resources Limited
Signed a binding primary ilmenite offtake agreement for 650,000 tonnes per year with Bengbu Zhongheng New Materials. This Agreement enhances Thunderbird’s economics by generating additional revenue from primary ilmenite sales and expected increased zircon production. Being able to defer capital required to process the ilmenite significantly reduces the project equity funding requirement. Current share price: $0.40.
Has confirmed it will list 45% of the company through an IPO in mid August 2019. The priority offer is to Local Resident or Non-Resident Ratepayers, eligible employees and Iwi, and opens 23 July and closes 5 August.
Has announced a sale of its interest in Foodspring’s parent Goodmainton AG, and will realise a gain on sale of $64m. Current share price: $3.76, 12 month target price: $4.39.
Has announced a retail bond offer of up to $100m, with a maturity date 29 July 2026. The coupon rate will be advised 5 July, minimum of 3.35%. Existing TPW160 holders can apply to exchange their TPW160 bonds for a new bond on a one- for-one-basis.
Listed companies with upcoming ex dividend dates
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