Bellamy’s Australia Limited (ASX: BAL)
Successful SAMR registration: Bellamy’s Australia Limited (ASX: BAL) reported that for the HY ended 31 December 2018, it has posted a revenue result of $129.6m and normalised EBITDA result of $26.0m. This was materially below the prior year and has been impacted by a number of factors as informed to the market previously. This included a prolonged delay in SAMR registration impacting Chinese-label sales, the decision to run-down trade inventory prior to the Australia-label rebrand, and a marked slowdown in overall category performance.
Company’s FY19 full-year guidance has been revised to a group revenue of around $275 million to $300 million and an EBITDA margin of 18% to 22%. This change reflects a stronger investment plan in China over the coming years.
The management maintains high confidence in the rebrand, its pipeline of new product, sustained food growth and SAMR registration. The strongly believes that the medium-term outlook remains compelling, supported by sound fundamentals, differentiated position, and a strong three-year growth strategy.
The stock is currently trading at A$ 10.35 (Closing price as on 08 March 2019), down by 1.616% during the day’s trade, with a market capitalization of A$ 1.19 Bn. The stock generated a YTD return of 38.60% and 12.51% return over the past month. Thus, considering the Successful SAMR registration, extension of GACC license, strong EBITDA guidance for FY19, the stock has garnered good response from the market participants.
Independence Group NL (ASX: IGO)
Strong Y-O-Y performance driven by NOVA operations: Independence Group NL (ASX: IGO) recently stated that as at 31 December 2018, company’s total attributable Mineral Resources contained estimated metal contents of 302kt Nickel, 107kt Copper, 9kt Cobalt, and 2.31Moz of Gold.
For the 1H FY2019 ended 31 December 2018, revenue and other income of A$356M (1H18: A$355M), and underlying EBITDA of A$131M (1H18: A$133M) was broadly unchanged with higher production and sales from Nova and Tropicana offset by the absence of revenue from the Jaguar and Long Operations that exited the portfolio at the end of FY18. Operating cash flows improved 46% to A$163M.
IGO is well placed for a strong FY19, with both Nova and Tropicana poised to deliver improved productivity and value. Besides, IGO continues to make good progress with the significant value enhancement projects including downstream processing of Nova nickel concentrate.
The stock is currently trading at A$ 4.760 (Closing price as on 08 March 2019), down by 4.225% during the day’s trade, with a market capitalization of A$ 2.93 Bn. The stock generated a YTD return of 36.91%, 7.81% return over the past month, and the stock has returned 3.54% in the last five days in line with the upward medium-term trend.
Western Areas Limited (ASX: WSA)
Decent Outlook: Western Areas Limited (ASX: WSA) has disclosed that Highly chargeable anomalies were identified within the 1,000m east-west strike of the Fairbridge Prospect. The Interpretation of new geophysical data indicates that the mineralised ultramafic units drilled at the Stricklands and Cathedrals Prospects continue into the Fairbridge area and extend down-plunge to the north. The company has also stated that drilling at Fairbridge is to commence in the coming days.
On the financial performance front, for the HY ended 31 March 2019, the company reported revenue of A$123.70 million. The company had a Cash at bank A$134.3m, with no debt. The company reported positive cash flow from operations A$ 43m.
The Board is focused on the core business of low cost, long life nickel production, new nickel discoveries and generating returns to shareholders.
The stock is currently trading at A$2.23 (Closing price as on 08 March 2019), down by 5.508% during the day’s trade, with a market capitalization of A$ 645.57 Mn. The stock generated a YTD return of 24.21%, -4.07% return over the past month, and 3.96% return over the past five days. The stock has gained upside momentum in the past week.
Appen Limited (ASX: APX)
Reports improved EBITDA margins: Appen Limited (ASX: APX) recently declared a dividend of AUD 0.040, the record date for which was March 1, 2019, & the payment date shall be March 25, 2019.
The company reported underlying EBITDA of $71.3M up 153%, statutory EBITDA up 206% also the underlying EBITDA margins improved from 16.9% to 19.6% for the FY2018 on a YoY basis.
As regards the outlook for FY 2019, the company is deploying money in engineering to meet the demand for data. The Company’s full-year underlying EBITDA for the year ending Dec 31st, 2019 is forecasted to be in the range $85,000,000 – $90,000,000 after considering the engineering investment.
The stock is currently trading at A$ 24.37 (Closing price as on 08 March 2019), down 1.015% during the day’s trade, with a market capitalization of A$ 2.62bn. The stock generated a YTD return of 92.34%, 41.90% return over the past month, and a return of 4.77% in the past 5 days keeping the short to medium up trend intact.
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