Things to Learn from these Market Movers - LYC, NCK, ING, SEA, SGP

  • Oct 22, 2019 AEDT
  • Team Kalkine
Things to Learn from these Market Movers - LYC, NCK, ING, SEA, SGP

On 22 October 2019, the benchmark index S&P/ ASX 200 last traded at 6677.3 points, moving up by 0.4% from its previous close. Also, some of the stocks from the ocean of ASX have shown a decent growth in the trading session.

In this article we would be discussing about some market movers from different sectors.

Lynas Corporation Limited (ASX: LYC)

Australia based Lynas Corporation Limited (ASX: LYC) carries out activities related to rare earth minerals’ processing and extraction. LYC also works in the development of rare earth deposits space.

Strong Sales Revenue in Q1 FY20

Recently, the company through a release updated the market on its performance for the period ended 30th September 2019 (Q1 FY20) and outlined the following highlights:

  • Lynas stated that it operates in a way, which is safe for its employees, communities as well as the environment. Moreover, LYC (Malaysia) reported no lost time injuries in Q1 FY20, which helped the company in achieving a milestone of one-year lost time injury free in July this year.
  • LYC managed production for the September 2019 quarter, in accordance with the CY19 production limit, which was applied by the Malaysian government.
  • For the period, the company reported NdPr production consisting of 1,242 tonnes and total REO production comprising of 3,926 tonnes.
  • When it comes to financial performance, for the quarter ended 30th September 2019, the cash balance of the company stood at $119.1 million in comparison to $89.7 million of Q4 FY19. The invoiced sales revenue amounted to $99.1 million over $87.5 million of Q4 FY19.
  • In another update, LYC announced that it would be holding its 2019 AGM on 26th November 2019.

Lynas Corporation Limited

On the stock performance front, Lynas Corporation Limited last traded at a price of $2.58 per share with a fall of 0.769% from its last close on 22nd October 2019. It experienced a rise of 27.45% return in the time frame of six months.

Nick Scali Limited (ASX: NCK)

Functioning since more than 5 decades, Nick Scali Limited (ASX: NCK) is involved with the business of home furniture and associated accessories’ sourcing and retailing.

Difficult Trading Conditions:
  • The company in the release dated 15th October 2019 mentioned that difficult trading conditions have had continued into the first 3 months of the ongoing financial year.
  • There was a decline of 10–15% in the monthly store traffic in the first three months of the current financial year and had a significant impact on LFL store sales, which has now declined by 8% in YTD period versus the previous year.
  • NCK stated that the above-mentioned decline was linked to low demand in general retail, which were associated with the latest slowdown in the housing sales.
  • Therefore, on the back of challenging trading conditions, for the half-year ending 31 December 2019, NCK currently expects that the NPAT would be in the ambit of $17 million-$19 million, against $25 million for the corresponding period in FY19.
  • Notwithstanding the softer trading conditions, NCK continues to generate positive cashflows, as well as maintains a strong balance sheet.

In another update, the NCK announced that it would be holding its Annual General Meeting for this year on 29th October 2019 and following would be the key business agendas:

  • Resolution 1 – Remuneration Report
  • Resolution 2 – Re-election of Director John Ingram

On the stock performance front, Nick Scali Limited last traded at a price of $6.600 per share with a rise of 1.538% on 22nd October 2019. NCK stock has provided with 0.15% return in the time frame of six months.

Inghams Group Limited (ASX: ING)

Formed in 1918, Inghams Group Limited (ASX: ING) is engaged into the sale and production of chicken and turkey products throughout its vertically integrated free range, further processed value enhanced and food products categories.

Decent Return provided to Shareholders in FY19
  • The FY19 for the period closed 29 June, witnessed ING making a solid progress on its strategy and reported an underlying NPAT, which amounted to $103.2 million, reflecting a decrease by 4.4% as compared to FY18.
  • It witnessed a rise of 4.3% in poultry volume, which was fueled by steady demand in Australia, underpinned by early signs of a return to growth in the New Zealand market.
  • In FY19, the company declared interim dividend of 9.0 cps equating to $34.0 million and final dividend amounted to 10.5 cps totalling to $38.9 million.

Guidance for FY20

  • The company has planned EBITDA run rate to be lower in the 1H than the 2H FY20. It stated that current feed costs happen to be historic highs, affecting the guidance into second half of FY20 dependent upon the next domestic grain harvest.
  • ING added that the New Zealand performance is returning to YoY growth and remains below historical profit levels.

On the stock performance front, Inghams Group Limited last traded at a price of $3.090 per share with a rise of 1.98% compared to its last close on 22nd October 2019. It has given -34.23% return in the time frame of six months.

Sundance Energy Australia Limited (ASX: SEA)

Sundance Energy Australia Limited (ASX: SEA) is primarily in the exploration, production and development of oil and natural gas in the USA.

Sale of Dimmit County Assets
  • As per the exchange filing dated 2nd October 2019, the company announced that it successfully closed on the sale of its assets in Dimmit County, TX with respect to its announcement made on 18th July 2019.
  • For the transaction, the company has received an amount of US$17.8 million at closing and believes to receive the pending sale proceeds from the transaction at the end of the 120-day after the closing period.

Total Revenue up by ~84 % to US$52.9 million in the second quarter

Recently, the company through a release updated the market with its results for the second quarter, closed 30 June this year, wherein it communicated about the operational and financial performance for the period:

  • The average net sales volumes stood at 13,898 boe/d, which reflects a rise of around 79% on YoY basis and turned 6 wells into sales and posted an exited quarter with 4 PDNP wells and 6 DUCs.
  • The revenue witnessed a rise of around 84% YOY against Q2 FY18 and the figure stood at $52.9 MM.

On the stock performance front, Sundance Energy Australia Limited last traded at a price of $0.140 per share with a fall of 3.448 % from its last close. It gave a return of -68.82% in the time frame of six months.

Stockland (ASX: SGP)

Stockland (ASX: SGP) owns, manages and develops a range of assets, which include shopping centres, office and industrial assets etc.

A look at Chairman’s Speech at 2019 AGM
  • Tom Pockett, Chairman of SGP stated that a continued focus on its strategic priorities, as well as its clear sense of purpose has helped the business to drive a good result.
  • Funds from operations for the group amounted to $897 million, reflecting a rise of 4% against prior year, demonstrating an increase in FFO per security of 5.1%.

Welcomed by Increased numbers in Q1 FY20

  • In the first quarter of FY20 closed 30 September 2019, SGP witnessed an increase in residential sales, a rise in comparable retail MAT growth, as well as continued up-weighting in logistics and progress in the development pipeline of its commercial property.
  • It posted net deposits of 1,149 that are marginally above projections, representing improving market conditions.

Stockland

On the stock performance front, Stockland last traded at a price of $4.780 per share with a fall of 2.846% from its prior close 22nd October 2019. It provided 26.48 percent return in the time frame of past six months.


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