5 Gainers Of The Day: APT, ELD, MDC, SXL, DGH

By AEST 3:20 PM, S&P/ASX 200 index was up by 35.7 points at 6,759.8. The below-mentioned stocks were among the top gainers on ASX today (i.e., 11 November 2019). Let’s take a closer look at these stocks and their recent updates.

Highlights:

• APT’s stock up by over 4%
• ELD’s stock up by 3.878%
• MDC’ stock up by over 14%
• SXL’s stock up by over 4%
• DHG’s stock up by over 4%

Afterpay Touch Group Limited (ASX: APT)

APT’s stock up by over 4%

Technology-driven payments company Afterpay Touch Group Limited (ASX:APT) witnessed an improvement of 4.301% in its share price during today’s trading session (AEST 3:24 PM). This ‘Buy Now Pay Later” (BNPL) player has gained positive sentiments from various leading brokers who have recently recommended investors to buy APT and have also increased the target price of the stock.

Last month, the company released a media response announcement wherein it announced that it is aware about the recent media reports in relation to possible regulatory developments following the Reserve Bank of Australia’s (RBA) 2020 review of payments regulation.

The company also highlighted that its platform delivers value to merchants and customers that extends far beyond the payment processing aspects of a transaction:

• Afterpay’s business model provides a highly customer centric service that is based on trust, loyalty and responsible spending habits
• Contrary to traditional credit models, Afterpay is a free service for customers who pay on time.

The company understands that legislative and/or policy change would be required for the BNPL sector to be brought under specific payment system regulation and is looking forward to continue engagement with the RBA and other relevant stakeholders.

In financial year 2019, the company reported strong financial results with growth witnessed across all geographies and channels.

FY19 Highlights include:

• Global underlying sales in FY19 increased by 140% to $5.2 billion;
• At end of FY19, the company had Active merchants of 32,300, up 101% on last year;
• During the year, the company made a strategic partnership with VISA to support future expansion and platform innovation in the US;
• Total Afterpay pro forma income of $251.6 million, up 115%, and Afterpay Net Transaction Margin (NTM) of $126.1 million, up 126%;
• Australia and New Zealand strong growth continues – instore growing strongly with over $1 billion of underlying sales since inception and represents a significant growth opportunity.

By AEST 3:20 PM, APT stock was trading at a price of $28.160. Notably, in the last one-year, APT stock price has increased by 86.64% as on 8 November 2019.

Elders Limited (ASX: ELD)

ELD’s stock up by 3.878%

Leading agribusiness business, Elders Limited (ASX: ELD) has revealed its FY19 (year ended 30 September 2019) results today. Following the release of the results, the company’s stock witnessed an uplift of 3.878% during the day’s trade (AEST 3:20 PM).

In FY19, ELD recorded an underlying after-tax profit of $63.6 million, in line with the previous year. Underlying Earnings Before Interest and Tax (EBIT) of $73.7 million were $0.8 million lower than FY18, demonstrating the company’s creditable performance given the challenges faced by rural businesses in many parts of Australia.

As per the company’s Managing Director MC Allison, the FY19 result highlights the resilience of Elders’ business model and reaffirms that its target of seeking 5 – 10% EBIT growth through the FY17 to FY20 agricultural cycle to 2020 is both realistic and achievable.

The company has declared a final dividend of 9 cents (100% franked) per share, taking the full-year dividend to 18 cents per share, in line with last year.

FY19 Financial Performance Summary (Source: Company Reports)

FY 19 Operational Highlights

• New and extended relationship agreement with Rural Bank to provide its clients access to quality banking services;
• Acquisition of Australian Independent Rural Retailers (AIRR) to provide EBIT growth and strategic presence in key geographical areas
• Strengthened the “Elders Give It” program through continued Royal Flying Doctor Service partnership and further community involvement;
• Formal engagement with Rural Research Centres, government and tertiary institutions to enhance its agricultural research development and extension initiatives through the Thomas Elder Institute;
• Achieving great productivity for clients through Thomas Elder Consulting and its expanded digital offerings;
• Major business restructure to drive performance and focus heading into the final year of the second Eight Point Plan;
• Launched new Livestock and Wool in Transit (LIT/WIT) delivery warranty products associated with Elders’ Agency Services.

For FY2020, the company is expecting reduced summer cropping as dry conditions persist across north eastern and southern Australia, whilst winter cropping will increase but remain below long-term average.

By AEST 3:20 PM, ELD stock was trading at a price of $6.305.

Medlab Clinical Limited (ASX: MDC)

MDC’ stock up by over 14%

Australian based medical life science company Medlab Clinical Limited (ASX: MDC) has released its October month update wherein it has reported that it dispensed 846 cannabis bottles (NanaBis™ and NanaBidial™) during the month.

The company witnessed an unprecedented increase in demand for NanaBis™. The increase in demand required a rescaling of-the production process. Sales are via the governments Special Access Scheme and demand increase in part reflects 2 emerging factors differentiating Medlab products:

• NanaBis status with clinical trials at Royal North Shore Hospital
• More recently allowing doctors and patients to participate via the TGA approved Observational Study designed in collaboration with US FDA

Recent case studies NanaBis™ have reported:

• Significant reduction in medications taken (in particularly opioids)
• Significant improvements in quality of life:
• Improved sleep o Increase in appetite
• Decrease in anxiety
• Pain reduction

BY AEST 3:24 PM, MDC stock was trading at a price of $0.390, up by 14.706% intraday.

Southern Cross Media Group Limited (ASX: SXL)

SXL’s stock up by over 4%

Australia’s leading entertainment company Southern Cross Media Group Limited (ASX: SXL) broadcasts 91 free to air TV signals across regional Australia. Today (AEST 3:20 PM), SXL is up by 4.111% despite of not releasing any material announcement.

Despite challenging advertising markets, SXL reported group revenue of $660.1 million in FY19, up 0.5% on the prior year. Supported by disciplined cost control, underlying EBITDA was up by 0.9% to $159.9 million in FY19 while the underlying net profit after tax was up by 3.1% to $76.2 million.

The company is currently in the process of increasing its investment in smart audio consumed through internet-enabled devices, both protecting and expanding its audiences.

In the past six months, SXL stock has provided a negative return of 27.13%. By AEST 3:20 PM, the stock was trading at a price of $0.937 with a market cap of $692.11 million.

Domain Holdings Australia Limited (ASX: DHG)

DHG’s stock up by over 4%

Domain Holdings Australia Limited (ASX: DHG) has inked a binding agreement to acquire 100% of Bidtracker Holdings Pty Ltd which operates the business Real Time Agent for a consideration of $24.8 million, $19.4 million of which is payable in cash on completion.

Further, an additional amount of between $0 and $15.6 million in cash is payable based on the achievement of defined targets over FY20 and FY21, resulting in a maximum consideration of $35 million on achievement of 200% of the business plan.

The Real Time Agent product suite includes:

• Real Time Authority - a digital execution of the binding agreement between real estate agents and vendors;
• Real Time Contracts - a digital sale contract process that calculates settlement dates and deposits, and instantly sends copies of the completed contract to the agent, office, vendor, and purchaser;
• Bidtracker - a tool for agents to digitally record individual bids and auction results, in real time, providing agencies and franchises with real time visibility of their business and performance.

By AEST 3:14 PM, DHG stock was trading at a price of $3.260, up by 4.487% intraday.

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