Dual Listed Stocks With Growth Potential – AIA, KMD, VGL, RBD

Dual Listed Stocks With Growth Potential - AIA, KMD, VGL, RBD

There are companies on ASX, which are listed on the other foreign exchange as well. Few important stocks which enjoy the dual listing are Auckland International Airport Limited (ASX: AIA), Kathmandu Holdings Limited (ASX: KMD), Vista Group International Limited (ASX: VGL), and Restaurant Brands New Zealand Limited (ASX: RBD).

Auckland International Airport Limited (ASX: AIA)

Auckland International Airport Limited (ASX: AIA) is engaged in providing airport facilities and supporting infrastructure in Auckland, New Zealand. AIA is one of the largest corporates in New Zealand.

March 2019 Monthly Traffic Update: AIA total passenger numbers in March 2019 were in-line with the prior corresponding period. International passengers excluding Transits posted a de-growth of 0.7%, whereas domestic passengers saw a growth of 1.1% as compared to March 2018. The de-growth in International passenger was largely due to the shift in the timing of Chinese New Year to early February in 2019. In addition, the Easter and school holiday period also shifted from late March in 2018 to mid-April 2019. Consequently, the arrival of Australian and Chinese visitors for March came down by 11.6% and 9.0%, respectively as compared to the prior corresponding period. Additional capacity, mainly on the Auckland-Queenstown route with +8,000 seats drove the growth in Domestic passengers.

1HFY19 Results Highlights:

  • Total revenue witnessed a Y-o-Y growth of 11.5%, largely supported by Retail income, which grew 24.6% and Investment property rental income posting a growth of 14.6%. Growth in passenger volumes and runway movements were partially offset by declined prices of international aeronautical charges. Additionally, the airfield income also boosted the growth seen in revenue. Strong growth in retail income reflected the impact of the expanded Duty-Free area and the launch of luxury high street product in 1H FY19. Destination stores, the Collection Point and Strata Lounge witnessed an excellent growth in income. Growth in parking came in at 4.8% amid PAX growth with demand across the product range.
  • EBITDA margin at 74.8% in 1H FY19 declined as compared to the prior corresponding period, which reflected the higher staff and asset maintenance costs along with the ongoing costs related to the outsourcing business technology.
  • Total borrowings as on 31st December 2018 stood at $2,148 million, grew by 4.3% on pcp.
  • Underlying profit for the period 1H FY19 at $136.9 million reflected a growth of 2.9% from the underlying profit of $133.1 million in 1H FY18.

Outlook: The management expects total capital expenditure in FY19 in the range of $280 million to $330 million. The management expects underlying net profit after tax for FY19 to be in the range of $265 million to $275 million. The guidance has been given by the Management pursuant to any significant adverse events, one-off expenses, non-cash fair value changes to property and any deterioration on the back of global market environments or other unforeseeable circumstances.

At the current market price of $8.530, stock is available at price to earnings of 17.560x. Currently, the stock is trading towards its 52-week high of $8.620. Looking at the price performance, the stock has appreciated ~33% in last 1-year.

Kathmandu Holdings Limited (ASX: KMD)

Kathmandu Holdings Limited (ASX: KMD) is engaged in designing, marketing and retailing of clothing and equipment for outdoor, travel and adventure. The company operates through its wholly owned subsidiaries in New Zealand, Australia, United States and the UK. The company recently announced an ordinary fully paid dividend of $0.0400 per security which is to be paid on June 21, 2019.

1HFY19 Results Highlights:

  • Total revenue for the company posted a growth of 2.7% in its largest market, Australia. Sales from New Zealand stood at 1.9%, below as compared to the last year, however, partially offset by a 50bps increase in gross margin. Online sales comprised 9.5% of direct to consumer sales in the previous twelve months. The company had recently announced its results for the first half of FY19.
  • Operating expenses grew by 4.3% at constant exchange rates, and by $2.4 million at actual exchange rates. The additional operating expenses over 1HFY18 came in from Oboz and Kathmandu North America which stood at $7.3 million.
  • NPAT (normalised net profit after tax) came in at NZ$13.2 million, posting an increase of NZ$0.9 million as compared to 1HFY18. Excluding an abnormal income of NZ$1.1 million related to the GST treatment of reward vouchers, normalised EBIT (earnings before interest and tax) increased from NZ$18.0 million to NZ$19.8 million for the period under consideration.

The Management stated that Kathmandu is going through a transformational phase. With its focus on driving the growth in Australia and NZ, the Management is diversifying business channels, brand and markets.

After experiencing an excellent same store sales expansion at the beginning of FY19, KMD saw a comparatively softer trading environment in Australia and NZ at the time of the Christmas and Boxing Day period. Revenues for the period came in below the expectations, however, retail gross margin witnessed an improvement.

  • Retail gross margin at 64.2% in the first half of FY19 saw an increase of 0.8% points from 63.4% in 1H FY18. The improvement in the gross margin was mainly due to less promotional discounting which led to higher average selling prices.

At the current market price of $1.975, the stock is trading at price to earnings multiple of 9.150x. the stock is trading towards its 52-week low of $1.970. Market capitalisation for the stock stood at $461.42 million.

Vista Group International Limited (ASX: VGL)

Vista Group International Limited (ASX: VGL) is engaged in the sale, support and associated development of software for the film industry in New Zealand. The company on 30th May 2019, informed that shareholders have passed the following resolutions- (I): Kirk Senior to be re-elected as a director of VGL (II) Cris Nicolli to be re-elected as a director of VGL (III) Board is authorised to fix the fees and expenses of PwC as auditor for the ensuing year (IV) VGL’s present constitution is revoked.

The company recently released an updated related to Chairman’s address. The company delivered another excellent result, for the 5th consecutive year of over 20% top-line growth, resulting in a 17% rise in EBITDA and a 150% growth in operating cashflow. Since its IPO (~5 years ago), the company has witnessed a CAGR (compounded annual revenue growth rate) of 29%. This exceptional growth was largely on the back of – Vista Cinema and Movio which continued to deliver strong results. Other businesses also performed well or are now on track for growth, going forward. JV (joint venture) business in China has continued to remain strong.

At the current market price of $5.800, the stock trading at price to earnings multiple of 77.300x. The stock is trading towards its 52-week high of $5.800. The stock has gained 72.42% in last 1-year.

Restaurant Brands New Zealand Limited (ASX: RBD)

Restaurant Brands New Zealand Limited (ASX: RBD) is engaged with operation of quick service and takeaway restaurant concepts in New Zealand, Australia, Hawaii, Saipan and Guam.

The company delivered strong quarterly results for the first quarter of the financial year (12 weeks to 20 May 2019) with same store sales growth across all three divisions. Total sales for the quarter stood at $182.8 million, an increase of $2.8 million or 1.6% as compared to the prior corresponding year. All the segments of NZ, Australia and Hawaii witnessed a decent same store sales growth of 4.9%, 6.0% and 8.4%, respectively. Total store numbers stood at 287, down by 22 on pcp as 22 Starbucks Coffee stores were sold off in October 2018.

KFC New Zealand posted sales of $80.0 million for the quarter, a growth of 6.7% on pcp and was up 5.2% on a same store basis. Store numbers saw the addition of 3, reaching to 97 in the quarter.

Pizza Hut NZ’s sales for Restaurant Brands owned Pizza Hut stores came in at $7.7 mn for the quarter, a decline of 16.1% on pcp. Same store sales also witnessed a decrease of 4.6%. Restaurant Brands owned store numbers saw the opening of one store and shut of 2 stores from last year to 31, due to build and sell stores to independent franchisees. Total number of Pizza Hut stores of 69 are being operated by independent franchisees. Total network of the stores stood at 100. Network sales stood at $22.6 million in 1QFY19, a decline of 3.1% on pcp.

The company sold off 22 Starbucks Coffee stores in the month of October 2018.

Total revenues for Carl’s Jr. for 1QFY19 came in at $8.3 million, up 9.5% on pcp after introducing the delivery through the UberEats platform. Same store sales recorded a growth of 11.8% whereas store numbers were steady at 18 in 1QFY19.

1QFY19 sales for KFC Australia at $A40.7 million was increased by 1.9% on a total basis. Lower growth was primarily on the back of temporary closures for store refurbishments. Store numbers did not post any change, remaining at 61 in the quarter.

Taco Bell recorded sales of $US17.4 million, driven by successful promotions. Sales grew by 8.0% on a total basis and 12.6% on a same store basis (local currency) in the first quarter of FY19. Number of stores were 36 with no change in the quarter.

Pizza Hut Hawaii witnessed a growth of 0.1% on a total basis and up 3.1% on a same store basis (local currency) to $US12.3 million in the first quarter of fiscal year 2019. There was no addition to the store numbers in the quarter.

At the current market price of $8.030, the stock trading at price to earnings multiple of 29.130x. The stock is trading towards its 52-week high of $8.050. The stock has gained 14.22% in last 1-year.


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