Stocks touching Fresh Highs – ARB, MP1, TCL

  • Feb 17, 2020 AEDT
  • Team Kalkine
Stocks touching Fresh Highs – ARB, MP1, TCL

The earnings season is here for the Australian companies and the effect can be seen on the stock performance as well. Some major stocks have influenced the sectoral performance through their individual performance touching 52-weeks high price, whereas some stocks have not performed that well.

Moreover, it is not only the earnings that has resulted in the high stock prices but also the macro factors in the environment. Also, a lot depends on the investor sentiments currently prevailing in the market.

Let us take a look at the three stocks that have recently touched their fresh highs.

ARB Corporation Limited (ASX:ARB)

The consumer discretionary player listed on ASX witnessed a surge in its price recording all time high price of $ 20.640 during the day’s trade on 17 February 2020.

Although, the ARB stock settled at a price of $20.460, down by 0.244% compared to its last closing price, just shying away from its 52-weeks high price.

The Company’s results for the half-year period are anticipated to be released tomorrow on 18 February 2020. However, ARB Corporation Limited recently on 4 February 2020, advised that the preliminary results for the half-year till 31 December 2019 shows total revenue of $234 million, an increase of 7.1% over the pcp and the net profit in the half-year to 31 December 2019 is below the pcp.

Moreover, on the basis of unaudited management accounts, ARB looks forward to reporting a reduction in net profit after tax of around 7.4% reflecting the substantial solidification of the Thai baht which has resulted in an increase in the Company’s costs on a range of products manufactured in ARB’s Thai factories.

During the previous year ended 30 June 2019, the Company’s net profit after tax increased by 12.1% reaching $57.1 million as compared to the reported net profit after tax of $51.0 million in the year ended 30 June 2018.

The Company primarily engages in designing, development, distribution and commercialisation of vehicle accessories and light metal engineering works and makes substantial investment of capital into research and design each year to make sure that the products consistently meet the expectations of the customers.

Another stock that touched its 52-weeks high price was Megaport Limited (ASX:MP1), which is a global leading provider of Elastic Interconnection services and enables customers to rapidly connect their network to other services across the Megaport Network.

The stock registered its fresh 52-weeks high price of $12.400 on 17 February 2020 and settled at a price of $12.210, up 3.038% compared to its previous close, with a market capitalisation of $ 1.71 billion.

The information technology stock, MP1 has delivered 51.15% return to its shareholders during the last six months till 14 February 2020.

For the 1H FY20 period, the Company reported the following results for the period ended 31 December 2019:

  • Revenue for the 1H FY20 was $25.9 million, an increase of 70% from the pcp;
  • Total Monthly Recurring Revenue (MRR) for the month of December 2019 was $4.6 million, an increase of $1.9 million or 68% from the month of December 2018;
  • Profit after direct network costs of $13.2 million for the half-year period ended 31 December 2019, an increase of $8.3 million or 173% from the same period ended 31 December 2018 ($4.8 million);
  • Net loss for the half-year period ended 31 December 2019 was $19.0 million; and
  • Cash and cash equivalents of $119.9 million was noted at 31 December 2019.

 

Revenue Performance 1HFY20 (Source: Company's Report)

 

The Company also launched its services in Japan, which is a leading market for public cloud services in November 2019 and also successfully completed $62 million capital raising during the course of its business in the half year duration.

The Company continues to expand its operations internationally and in new locations and added 24 new cloud onramps during the period representing access to 12 new cloud regions, forming a more robust ecosystem of service provider options driving greater utilisation of the Megaport network and providing more customer access and value.

Moreover, the Company also saw significant expansion in terms of customer acquisition with 1,679 customers achieved across 552 Enabled Data Centres in 102 cities in December 2019.  Other operating highlights from the period are as follows:

  • Total Services increased from June 2019 to December 2019 by 2,353, or 20%;
  • Average Revenue per Port increased to $936 in December 2019 or 6% growth from June 2019.

 

Also, the Company formed partnerships with CyrusOne and EdgeConnex in Europe and QTS in North America and developed new features for Megaport Cloud Router (MCR) and expanded the MCR service footprint.

Another stock setting new all-time high is one of the world’s largest toll-road operators Transurban Group (ASX:TCL), which touched a fresh 52-weeks high price of $ 16.410 on 14 February 2020.

The TCL stock could not gain during the day’s trade on 17 February 2020 and closed in the red zone at a price of $16.180, down by 1.161% from its last close.

The stock has a market capitalisation of $ 44.74 billion and has delivered 34.29% returns to its shareholders during the last one year.

Transurban is an Australian-owned company which engages in building and operating toll roads domestically (Melbourne, Sydney and Brisbane), as well as internationally (Greater Washington, United States and Montreal, Canada).

The Company’s recently released 1H FY20 results for the period ended 31 December 2019 and presented the following highlights:

  • Proportional toll revenue increased by 8.6% to $1,396 million;
  • Proportional EBITDA before significant items increased by 9.5% to $1,094 million;
  • Average daily traffic (ADT) grew by 2.3%;
  • 1H20 distribution of 31.0 cps, were fully covered by free cash flow $927 million; and
  • Statutory profit stood at $162 million.

 

During the past 18 months, Transurban successfully completed five major projects and a further two are expected to reach completion in mid-2020.

 

Progressively Delivering Projects (Source: Company's Reports)

 

In Sydney, the Company also acquired the 34.62% minority interests in the M5 West, taking Transurban’s ownership to 100%, with the integration program on track during the period.

In Melbourne, the Company has made significant progress on the West Gate Tunnel Project with over 13 million hours worked to date and over 4,000 people working on the project and are actively working with the D&C contractor and the State to resolve outstanding matters including those related to spoil management on the West Gate Tunnel Project.

The Company has realigned its leadership operating model, enhanced its capability and improved its systems and processes to ensure a scalable and efficient business that is positioned for success and is now seeing a significant number of opportunities emerge in its core markets and shall move to take advantage of them, while maintaining its normal disciplined approach.

Moreover, the Company announced a distribution totalling 31.0 cps paid on 14 February 2020 for the six months ended 31 December 2019 and reaffirmed its distribution guidance of 62.0 cps for FY20.


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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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