What’s streaming from ASX stocks: A look at MP1, CAR, JIN and BLX

  • Jun 18, 2020 AEST
  • Team Kalkine
What’s streaming from ASX stocks: A look at MP1, CAR, JIN and BLX

Summary

  • MP1 has total amount of AU$ 72.5 million via capital raising to be used in growing sales, development of products and expansion opportunities in future.
  • Another ASX listed stock CAR noticed an improvement in overall lead and traffic volumes post relaxation of social distancing measure.
  • Recently, JIN opted for voluntary suspension of its securities from quotation, awaiting an announcement related to its re-seller operations in WA (Western Australia) region.

In the wake of COVID-19 turmoil, development curves of many businesses were derailed.

At the same time, Australian market witnessed several companies who have beaten the blues and emerged as a silver lining in the dark clouds, with their strategic solutions at right time, outpacing other companies.

Australian benchmark index is trying to bounce back, and all eyes are glued towards forthcoming performance of the market.

Read on!

On 17 June 2020, benchmark S&P/ASX 200 (ASX:XJO) index had hit lowest of 4402.50 on 23 March 2020.

However, XJO noted an increase of 0.83% from its last close, and was at 5991.80 points on 17 June 2020, after hitting a high of 5991.80 points intraday, buoyed by the success of the country in combating COVID-19 spread and implementation of robust recovery measures incorporated in the monetary and fiscal policy.

Though, on 18 June 2020, the benchmark index was trading at 5947.9 points, down by 0.73% (at AEST 2:37 PM).

Did you read; S&P Dow Jones Indices Announces June 2020 Quarterly Rebalance of the S&P/ASX Indices

Let us now look at the performance of few ASX stocks along with their recent updates:

Software Defined Networking company, Megaport Limited (ASX:MP1) noted sell-down of ~7.7 million shares at a price of AU$13.36 per share, equivalent to ~ 5.0% of issued capital of Megaport by Digital MP, LLC, a subsidiary of Digital Realty (NYSE:DLR). Subsequently, Digital Realty now holds ~ 2.0 million shares in MP1.

Did you read; Digital Reality Sells Down Shares in Megaport

Of late, MP1 had been added to the list of companies ASX 200 index, with effect from 22 June 2020 (as and when trading starts).

Megaport has a robust balance sheet, with cash and cash equivalent of AU$108.699 million by the end of Q3FY2020.

Source: Company’s Presentation

Source: Company’s Presentation

In April this year, MP1 raised AU$50 million through institutional placement and AU$22.5 million through Share Purchase Plan in May 2020. The total amount via capital raising stands at AU$ 72.5 million and proceeds would be utilised to increase sales, development of products and expansion opportunities in upcoming times.

MP1 was trading at AU$13.15, decreasing by 2.23% (at AEST 1:03 PM).

Did you read; Top Tech Titans - NXT, MP1, PME, EML, NEA, PPH, APX

Established in 1997, carsales.com Limited (ASX:CAR) runs the biggest online motorbike, automotive along with marine classified business in Australian region. The Company builds world class technology and provides solutions related to ads in Melbourne propelling the business worldwide.

CAR was trading at AU$17.64, down by 2% (at AEST 1:04 PM).

On 17 June 2020, the Company provided business update and estimated financial outcomes for FY’20.

Did you read; Carsales provides business and profit update for FY20

CAR expects adjusted EBITDA in the range of AU$228 million - AU$232 million during FY’20; increase of 5% to 6% on pcp. The adjusted revenue is expected between AU$419 million and AU$423 million, including AU$26 million, which is billed but not charged, in line with COVID-19 support package in FY’20.

Furthermore, with ease in social distancing restrictions, the overall leads and traffic volumes have witnessed an improvement. The total inventory on CAR (carsales.com.au) declined across the past 6-week period (as on 17 June) propelled by substantial decrease in time to sell because of rising demand from car buyers. Also, car dealers faced difficulties in procuring new and used car stock in present condition.

Korea is performing well with its Encar business and is growing robustly with the increase in revenue and EBITDA compared to pcp. However, Brazil’s business is facing challenges due to COVID-19, impacting Webmotor’s both crucial financial and non-financial operating metrics.

Did you read; A Better Charted Recovery for Transport Stocks – TCL, BAP, APE, CAR, ALX

Internet lotteries and gaming Company, Jumbo Interactive Limited (ASX:JIN) was placed under trading halt on 15 June 2020.

Further, the Company on 17 June released an announcement on suspension from official quotation. ASX noted a request from JIN for the voluntary suspension of its securities pending release of an announcement in relation to its re-seller operations including in Western Australia that is expected to be announced before commencement of the trading on 29 June 2020.

Shares of JIN last traded on ASX at AU$11.41 on 12 June 2020.

Did you read; These Four Stocks are in Trading Halt, Know Why!

As per its update on 1 April, amidst pandemic, JIN’s management implemented various measures to establish adequate capacity for online sales of lottery tickets and to ensure the smooth operating during big jackpots.

Moreover, the management expected minor delays on the introduction of Lottery SaaS business because of the social distancing norms. The Company has four contracts with ~AU$140 million in prospective ticket sales volume, which when rolled out, are estimated to increase TTV and revenue around AU$4.6 million.

However, NPBT would increase worth ~ AU$3.5 million. JIN anticipates attaining ~ 80 per cent of the incremental NPBT in FY’21, and 100 per cent in FY22.

Based on an estimate of ten large jackpots at an aggregate of AU$275 million (average $27.5 million) for Q4FY20, the Company’s management anticipates 41 large jackpots at an aggregate of AU$1,605 million for FY’20.

The Company has vision to reach ticket sales worth AU$ 1 billion on the Jumbo platform by FY’22.

Source: Company’s Announcement

Source: Company’s Announcement

Did you read; ASX Stocks in Wagering and Online Social Gaming amid long tale of the unexpected

Formed in 1967, Beacon Lighting Group Limited (ASX:BLX), an Australian retailer of ceiling fans, light globes, energy-efficient products and light fittings was trading at AU$ 1.17, down by 4.098% (at AEST 1:57 PM).

Though, BLX witnessed a whopping increase of 22.613% and settled at AU$1.220 on 17 June 2020. This soared share price was buoyed by update on COVID-19 actions of the Group, FY’20 YTD (1 July 2019- 14 June 2020) sales, FY’20 statutory profit guidance and the Beacon Energy Solutions closure.

On FY2020 YTD sales front, BLX noted a growth of 15.5% in the total sales, while online sales grew massively by 77.7% during H2’20 till 14 June 2020. This sale was bolstered by the surge in time spent by the customers on working, educating, and completing projects while staying at home.

Despite the current economic crisis and given the boosted sales results in H2’20 till 14 June 2020, the group’s Underlying NPAT in FY’20 is expected to be higher than the Underlying NPAT of AU$16.5 million in FY’19.

The Company expects to fork out ~ AU$5 million to cover the cost of Beacon Energy Solutions business shutdown.

 


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