5 LIC and Asset Management stocks -WAX, ENN, MNY, QBE, MQG

  • Feb 18, 2020 AEDT
  • Team Kalkine
5 LIC and Asset Management stocks -WAX, ENN, MNY, QBE, MQG

In the recent past, most of the financial businesses with well managed product portfolio have reported decent business growth, while the stock market reacted in a similar fashion. Due to the positive earnings growth, these companies have  been able to deliver healthy dividends to its investors. Investors do look out for the dividend history of a company as it provides a guidance to the effectiveness of management of these businesses. The investment companies reported decent loan growth and higher customer growth in the last reporting period, aided by improved retail expenditure across Australia. We will be discussing five businesses with healthy growth potential.

WAM Research Limited (ASX: WAX)

WAM Research Limited brings to investors a diversified portfolio. This portfolio consists of growth companies which are undervalued.

Key Trading Update for January 2020: WAX declared its monthly updates wherein, the company reported gross assets of $235.1 million.

The company posted it half-yearly net profit after tax of $11.01 million, depicting a growth of 159.3%. revenues in the period went up 170.2% to $18.26 million. The company reported net tangible asset backing of $1.17 per share as on 31st December 2019. The company declared an interim dividend of 4.90 cents per share and is payable on 21st April 2020.

The company reported an operating profit before tax of $0.4 million and an operating profit after tax of $1.6 million for FY2019. The after-tax figure was augmented due to $1.2 million income tax benefit due to franking credits received on franked dividend income from investee companies.

 

Portfolio Bifurcation (Source: Company Reports)

 

Stock Update:  On 17th February 2020, the stock of WAX last traded at $1.520, rising up by 3.051 percent, with a market capitalization of ~$283.39 million. The stock made a 52-week low and high of $1.210 and $1.525, respectively. At current market price, the stock has generated a dividend yield of 6.58% on an annualized basis. During the last three months and six months, the stock has given a positive return of 2.79% and 10.49%, respectively.

Elanor Investors Group (ASX: ENN)

Elanor Investors Group is associated in owning and managing of real estate investment funds and syndicates for the third-party investors.

H1FY20 Operational Highlights for the Period ended 31 December 2019: ENN announced its half yearly results, wherein the company reported Funds Under Management (FUM) of $1,679 million, witnessing an increment of 46.1%, as compared to H1FY19. The business launched two new managed funds during the first half of FY20 and reported a combined gross asset value of $176.8 million as on 31 December 2019. Funds management fees, during the period stood at $8.3 million, up 10.9% on prior corresponding period (pcp) terms, aided by 6.8% increase in FUM from Elanor Retail Property Fund to $343.8 million.

Stock Update:  On 17th February 2020, the stock of ENN closed at $2.180, with a market a capitalization of ~$256.12 million. The stock made a 52-week low and high of $1.615 and $2.4. The stock is available at a price to earnings multiples of 13.59x on a trailing twelve months (TTM) basis. On a six-months and one-year basis, the stock has generated decent returns of 10.94% and 29.76%, respectively. At current market price, the stock has delivered a dividend yield of 8.78% on an annualized basis.

Money3 Corporation Limited (ASX: MNY)

Money3 Corporation Limited provides consumer finance used for the purchase and preservation of a vehicle. On 14th February 2020, the company disclosed the appointment of BDO Audit Pty Ltd as the auditor of the company.

H1FY20 Business Highlights for the Period ended 31 December 2019: MNY declared its half-yearly results, wherein the company posted revenue of $62.7 million, growing 55.0% on pcp. Loan Book stood at$426.7 million as on 31 December 2019, depicting a growth of 48.8%. The business reported new loan originations of $138.3 million, growing 58.8% on pcp terms, while cash collections made by the business stood at $134.5 million, growing by 44.9% from H1FY19. EBITDA on normalized basis came in at $30.5 million, growing by 56.4% on pcp terms. The company reported its normalized NPAT from continuing operations at $15.7 million, growing 61.9% on pcp terms.

 

Key Business Highlights (Source: Company Reports)

 

The Management declared a fully franked dividend of $0.0500 per ordinary share, with a payment date of 20th April 2020.

Outlook: The company anticipates FY20 statutory NPAT at higher than $32 million while the company expects its loan book to grow to more than $475 million in H2FY20.

Stock Update:  On 17th February 2020, the stock of MNY closed at $2.900, with a market a capitalization of ~$499.19 million. The stock made a 52-week low and high of $1.775 and $2.93, respectively. The stock is available at a price to earnings multiples of 16.660x on a trailing twelve months (TTM) basis. The stock has generated positive returns of 33.50% and 27.83% in the last three months and six-months, respectively. The dividend yield ratio of the stock stood at 16.66% on an annualized basis.

QBE Insurance Group Limited (ASX: QBE)

QBE Insurance Group Limited operates in underwriting general and reinsurance risks, investment management and administration of the economic entity's share of the NSW and Victorian workers' compensation scheme.

Key FY19 Business highlights for the Period ended 31 December 2019: QBE declared its operating highlights, wherein the business reported its gross written premium of US$13,442 million, as compared to US$13,657 million in FY18. Net Premium earned came in at US$11,609 million which stood lower than $11,830 million in FY18. Expense ratio stood at 14.6%, improving from 15.2% in previous financial period. Attritional claim ratio stood at 47.5%, improved from 50.2% in FY18. On a statutory basis, the company reported Insurance profit of US$647 million, as compared to US$826 million in FY18. Net profit after tax was reported at US$550 million as compared to $390 million in FY18.

The Board of Directors has declared a dividend of A$0.2700 per ordinary share with a payment date of 9th April.

Guidance: As per the FY20 outlook, the company expects combined operating ratio within the range of 93.5% to 95.5%. For FY20, the business expects net investment return within the range of 2.5% to 3.0%.

Stock Update:  On 17th February 2020, the stock of QBE closed at $14.760, with a market a capitalization of ~$18.47 billion. The stock made a 52-week low and high of $11.010 and $14.790. The stock is available at a price to earnings multiples of 25.74x on its trailing twelve months (TTM) basis. The stock has generated positive returns of 12.84% and 17.14% in the last three months and six-months, respectively. The stock has generated an annualized dividend yield of 3.75%.

Macquarie Group Limited (ASX: MQG)

Macquarie Group Limited is a financial service providing company, which specializes in banking, investing and funds management services. On 17th February, the company informed the successful completion of the bookbuild for its offer of Macquarie Bank Capital Notes 2.

H1FY20 Operational Highlights for the Period ended 30 September 2019: MQG announced its half-yearly results, wherein the company reported net operating income at $6,320 million, as compared to $6,924 million in previous corresponding period. The company reported its net profit at $1,457 million, depicting a growth of 11% on pcp terms. The company delivered strong regulatory ratios, which are way above the minimum Basel III requirements.

Stock Update:  On 17th February 2020, the stock of MQG was closed at $148.720, with a market a capitalization of ~$52.7 billion. The stock made a 52-week low and high of $114.350 and $149.48. The stock is available at a price to earnings multiples of 16.06x on a trailing twelve months (TTM) basis. The stock has generated positive returns of 21.81% and 18.44% in the last six months and one year, respectively. The dividend yield ratio stood at 4.11% on an annualized basis.


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This website is a service of Kalkine Media Pty. Ltd. A.C.N. 629 651 672. The website has been prepared for informational purposes only and is not intended to be used as a complete source of information on any particular company. Kalkine Media does not in any way endorse or recommend individuals, products or services that may be discussed on this site. Our publications are NOT a solicitation or recommendation to buy, sell or hold. We are neither licensed nor qualified to provide investment advice. 

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