Yovich & Co. Market Update - 10 July 2019

Jul 10, 2019 | Commentary

Market News

In summary, the NZX50 had 16 companies on the downside, 30 companies were on the upside and 4 unchanged. The markets closed higher on Friday up 1.09% from the previous Friday’s close. The Global Dairy Trade Auction has seen its fourth consecutive fall, with a 0.4% fall on the 2 July at an average price of USD$3,302 per MT.

Investment News

New Zealand Equities

Refining NZ

Marsden Point refinery is exploring the viability of a 26 MW solar farm to be potentially developed adjacent to the refinery to supply it with renewable electricity. The 31 hectare solar farm – New Zealand’s largest – would be situated on land belonging to the Company and is estimated to cost around $36-$39 million. Early work shows that the solar farm would reduce the cost of the refinery’s electricity consumption and have a positive impact on shareholder value. It is also a further step by the company in the transition towards a lower carbon future. Current share price: $2.10, 12 month target price: $2.38, Gross Dividend: 4.96%, PE Ratio: 22.18.     

Summerset

Is one of the leading operators and developers of retirement villages in New Zealand, with 26 villages completed or in development across the country. Summerset has announced that it will build its first retirement villages in Whangarei and Cambridge, with total investment across both villages to be an estimate of $290m. Both villages will have over 200 independent living homes, including two and three-bedroom villas, and around 70 serviced apartments. Tax paid profit for the YF18 was $98.6m. Current share price: $5.53, Gross Yield: 2.39%, PE Ratio: 5.80.

  

Precinct Property

Has reported a preliminary revaluation gain on its property portfolio of approximately $162 million (2018: $208.7 million) or 6.2%. This recorded gain will increase the value of Precinct’s portfolio to around $2.8 billion as of 30 June 2019, providing an uplift of 12 cents in Precinct’s NTA per share from $1.38 to around $1.50 per share. The portfolio is also benefiting from the strong investment demand for premium inner-city business space, particularly in Auckland. Current share price: $1.75, Gross Yield: 3.93%, PE Ratio: 8.07, Price/NTA: 1.19.

PGG Wrightson

Announced the details of its capital distribution plan, regarding the sale of the Seed and Grain business. Shareholders as at 31 July 2019 will receive their payment of 31 cents per share, immediately followed by a share consolidation of 1 for 10 to be actioned on 2 August 2019. Current share price: $0.54, Gross Yield: 5.15%.    

 

 

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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 Summerset Group Holdings Precinct Properties PCT.nz PGG Wrightson PGW.nz New Zealand Refining Company



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