Yovich & Co. Market Update - 14 August 2019
Aug 15, 2019 | Commentary
In summary, last week saw the NZX50 with 29 companies on the downside, 18 companies were on the upside and 3 unchanged. The NZD/USD decreased for a third week by 1.11%, and was on the back of The Reserve Bank of NZ announcing the lower OCR rate. The reporting season has started with Contact Energy, NZX and PGG Wrightson starting the week off.
New Zealand Equities
Tax paid profit for the 30 June year was up 161.1% at $345m, $213 million higher than the prior corresponding period, after realising a gain on the sale of Rockgas and AGS of $170m. NPAT on continuing operations is up 52% at $170m. Revenue from operating profits is up 14.3% at $2.5b. A gross dividend payment of 28.83 cents per share is payable 17 September 2019. Contact Energy is forecasting a gross dividend of 46.28 cents per share for the FY2020. Current share price: $8.37, Gross dividend yield: 5.82%.
Tax paid profit for the half year ended 30 June 2019 was up 45.8% at $6.448m, total revenue up 11.7% at $32.8m. NZX has had a busy 6 months adding 8 new exchange traded funds’ to the Smarshares list, as well as bringing to market Cannasouth and the Napier Port IPO expected on 20 August. Current share price: $1.21, Gross dividend yield: 7.00%.
Tax paid profit for the FY19 30 June year was $131.8m. The FY19 has seen the sale of the Seed & Grain business which sees the distribution of a 31 cent cash payment to shareholders, payable within 5 business days from 14 August. Shareholders will now have noticed the 1 to 10 consolidation of PGW shares. A gross dividend of 10.41 cents is payable 2 October. Current share price: $2.12, Gross dividend yield: 7.06%.
Announced a FY20 gross dividend guidance of 6.275 cents per share with Q1 gross payment of 1.87 cents per share payable 25 September, along with an annual revaluation gain of $70.5m. This is 4.3% above book value. Argosy have been reducing debt since FY15. The current debt-to-total asset ratio of 35.6% is well positioned between the board’s policy range of 30 to 40%. Current share price: $1.44, Gross dividend yield: 5.35%.
Tax paid profit for the 30 June was down 6.64% at $93.4m, total revenue up 7.75% at $97.6m and Debt to asset ratio of 35.3% down from 37.5%. Vital Healthcare’s property portfolio is $1.93b over 42 properties. Expected FY20 dividend of at least 8.75 cents per share, with the Q1 gross payment of 2.86 cents per share payable on 26 September. Current share price: $2.63, Gross dividend yield: 3.83%.
Announced that they are expecting to comfortably exceed the top end of its guidance range regarding net profit after tax for the year of NZ$25 - $27m. This is due to a one-off tax benefit in the USA of approximately NZ$1.8m. Current share price: $3.92, Gross dividend yield: 8.83%.
Announced an earnings guidance for the FY19 ending 31 July 2019 at a loss of $590-$675m due to a write-off in many of its businesses.
The board has also announced that there will be no dividend for the FY19 even when latest earnings guidance is inline with a 10-15 cent per share. “Not paying a dividend for the FY19 financial year is part of our stated intention to reduce the Co-op’s debt, which is in everybody’s long-term interests” (John Monaghan). Current share price: $3.55.
Tax paid profit for the 1H19 up 5.7% at $47.7m, total assets up 24% at $3b, gearing ratio up $110.1m at 31.3%. Summerset acquired six new sites this year and delivered 139 new units. A gross dividend of 6.4 cents payable 9 September 2019 brings total dividends to 13.6 cents per share. Current share price: $5.89, Gross dividend yield: 2.3%.
Sky City Entertainment
Tax paid profit for the 30 June year is up 1.9% at $173m. The sale of the Auckland car park has gone unconditional at a price of $200m, with capital to be allocated to assets and businesses which are better aligned with Sky City’s long-term strategic objectives. A gross dividend of 13.89 cents per share is payable 13 September. Current share price: $3.95, Gross dividend yield: 7.02%.
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Weekly Update Investment Shares Bonds Investment Strategy Investment Advice Share Advice Share Investment Investing in Shares Fonterra Co-operative FSF.nz Summerset Group SUM.nz SKYCITY Entertainment Group SKC.nz Tourism Holdings THL.nz Vita Healthcare Property VHP.nz PGG Wrightson PGW.nz NZX Ltd NZX.nz Contact Energy CEN.nz