Yovich & Co. Market Update - 03 September 2019
Sep 3, 2019 | Commentary
Market News
In summary, last week saw the NZX50 with 21 companies on the downside, 27 companies on the upside and 2 remained unchanged. The NZD continues to depreciate against the AUD and USD, -1.12% and -1.36% respectively. This has been a continual trend for the NZD/USD for 6 weeks now.
Investment News
New Zealand Equities
Skellerup
Tax paid profit for the full year 30 June was up 7% at $29.1m, revenue up 2.2% at $245m. The industrial Division’s EBIT was up 10% at $22.9m compared to the Agri Division of $22.8m, in line with the previous year. Skellerup has a robust balance sheet with net debt of $36.6m, up $5.9m due to acquisition in April of Nexus Foams. Nexus designs and manufactures key products for original equipment manufacturer (OEM) customers, particularly in healthcare and electronic applications. A gross dividend of 8.96 cents per share with an ex dividend date 3 October is payable 17 October. Current share price: $2.27, Gross Dividend: 6.84%.
Vista Group International
Vista Group provides software solutions across the global film industry including Cinema Management for large scale and smaller cinemas, Film Distribution, Moviegoer Data Analytics, Business Intelligence Solutions and Box Office reporting software. Tax paid profit for the half year 30 June was down 28.94% at $4.1m, revenue up 12.31% at $67.5m. Operating profit was down 29% at $8m. Vista’s core group (Cinema and Movio) increased revenue by 19% and EBITDA by 16%. Vista China and MX revenues reduced greatly impacting Vista Group profit and EBITDA along with adverse FX movements compared to last period. A gross dividend of 1.67 cents per share with an ex dividend date 12 September is payable 27 September. Current share price: $3.97, Gross Dividend: 1.15%.
NZ King Salmon
Tax paid profit for the full year 30 June was down 29.4% at $11.3m (partly down due to fair value biomass adjustment), revenue was up 7.7% at $172.6m. NZK Salmon achieved record prices of $22.95/kg up 11%. FY20 EBITDA is expected to be in the range of $25-$28.5m, FY20 harvest volumes are to be in line with FY19 (8,000 MT). North America sales have increased by 9%. NZK Salmon export demand continues to exceed expectation for their branded and no branded products, with salmon survival the greatest challenge to supply the demand. A gross dividend of 5.33 cents per share with an ex dividend date 5 September is payable 20 September. Current share price: $2.20, Gross Dividend: 3.67%.
Scales
Tax paid profit for the half year 30 June was up at $121.7m. This includes profits and fair value gains due to the sale of Polarcold and strong performance in Asia and near markets. Volume and prices up especially to China, underlying net profits up $0.7m to $30.1m, revenue up 26% at $277.9m, net tangible assets per share increased from $1.56 to $2.23 (49%). Mr Apple own export numbers ahead of forecast at 3,822k (tray carton equivalent, TCE), notwithstanding the impact of the smaller average apple size due to weather conditions. NPAT FY19 guidance in the range of $32-$37m. Current share price: $4.76, Gross Dividend: 5.5%.
Port of Tauranga
Tax paid profit for the full year 30 June was up 6.7% at $100.5m, revenue up 10.24% at $313.2m. Net tangible assets per share up from $1.64 to $1.71.Total trade up 10.2%, imports up 8.4%, exports up 11.2% and transhipments up 11.2%. Transhipment is when containers are transferred from one ship to another at Port of Tauranga. Net debt has increased 1.3% to 27.5%. The special dividend programme will be extended for 4 years but will reduce from 5 cents to 2.5 cents per share. A gross dividend of 17.08 cents per share with an ex dividend date 12 September is payable 4 October. Current share price: $6.40, Gross Dividend: 3.97%.
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