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Stocks Under Discussion: CTD, CCP, PTM, CKF, and SGR

  • July 16, 2020 10:04 PM AEST
  • Hina Chowdhary
    Director, Equities Research Hina Chowdhary
    1376 Posts

    Hina Chowdhary is the Director, Equity Research at Kalkine and has an extensive experience of about 15 years in the area of Research, which includes 5+ years in Equities Research particularly.She has earned a Master of Science degree from the renowne...

Stocks Under Discussion: CTD, CCP, PTM, CKF, and SGR

Summary

  • The Australian market has seen some ups and downs in the last few days but has been relatively stable.
  • The negative sentiment concerning rising coronavirus cases was partially negated by the positive news regarding US-based Moderna’s favourable data for a vaccine candidate.
  • Corporate Travel Management inked an agreement with its existing banking group to waive all financial covenants for the calendar year 2020.
  • Credit Corp Group Limited entered FY21 in a strong position with no net debt.
  • Collins Foods ended the fiscal year 2020 with a healthy balance sheet in a turbulent trading environment.
  • SGR informed that an individual, who visited The Star Sydney on 4 July, had tested positive for COVID-19. The Company is working with NSW Health to conduct contact tracing.
Gold MTF non-AMP

At the close of the trading session on 16 July 2020, the benchmark index S&P/ASX200 settled at 6010.9 points with a slight decline of 0.7%. The index has seen fluctuations, albeit small ones, in the last few days with a change in direction every day since 10 July.

The Australian market was on the road to recovery before a sudden spike in COVID-19 cases, mostly in Victoria, pulled down the optimism levels. However, favourable news from US-based Moderna Inc. around the COVID-19 vaccine development partially mitigated the negative impact of rising cases and rising unemployment rate.

Here, we will look at five ASX-listed companies that have been in the news lately and view their respective performance in the latest financial period.

Corporate Travel Management Limited (ASX:CTD)

Corporate Travel Management Limited is engaged in managing the purchase and delivery of travel services for its clients. In a recent market update, the Company stated that it operates a resilient business model which is highly flexible, capital-light, and can ramp up/down quickly as required. CTD is investing in its technology platforms and feedback loops to deliver new solutions.

DO READ: How casinos and travel players performed amid COVID-19?

The Company is in a robust liquidity position and inked an agreement with its existing banking group to waive all financial covenants for the calendar year 2020. CTD has access to a facility of around A$200 million. As on 7 May 2020, the net cash balance of the Company stood at A$30 million.

On 16 July 2020, the stock of CTD closed at A$8.880 per share with an increase of 0.68%. The stock of CTD has generated returns of -22.63% and -19.53% during the last one and three months, respectively.

Credit Corp Group Limited (ASX:CCP)

Credit Corp Group Limited is involved in debt purchase and collection as well as consumer lending. Recently, the Company released an update regarding FY20 unaudited results, wherein it stated that net profit after tax for FY20 is likely to be in the ambit of A$10 million -A$15 million post accounting for the impairment of purchased debt ledger (PDL) assets and additional provisioning arising from the COVID-19 impact. However, NPAT before the said adjustments is anticipated of between A$75 million- A$80 million. The Company continues to produce robust operating outcomes and consistent cash flows. CCP entered FY2021 in a stable position with no net debt and undrawn lines of A$375 million.

CCP anticipates spending an impairment to reflect a 13.5% reduction in the carrying value of its existing PDL assets. The Company is likely to take up a provision amounting to A$11 million for the uneconomic component of commitments not yet re-priced.

On 16 July 2020, the stock of CCP closed at A$16.550 per share with a decline of 0.181%. The stock of CCP has generated returns of 5.34% and -6.49% during the last one and three months, respectively.

Platinum Asset Management Limited (ASX:PTM)

Platinum Asset Management Limited operates a funds management business. In June 2020, the Company experienced net outflows of around A$213 million. This included net outflows from the Platinum Trust Funds amounting to around A$211 million. However, the net outflows do not include the impact of the cash distribution to unitholders of A$532 million or the distribution re-investment of A$374 million. For the year ended 30 June 2020, the Company is entitled to estimated performance fees of around A$9 million. For the half-year ended 31 December 2020, funds under management of the Company stood at A$25.1 million with a rise of 1.4% over June 2019 despite net outflows of A$1.3 billion. As a result of mark to market gains on seed investments, total revenue for 1H FY20 went up by 15.5%.

The Company’s business is in a robust position and well-positioned for future growth. PTM has a strong presence in the Australian retail market and has highly differentiated products, profitable and scalable business with strong dividend capacity, and an unlevered balance sheet.

DO READ: Global Growth for Funds Management Companies.

On 16 July 2020, the stock of PTM closed at A$3.940 per share with a decline of 1.253%. The stock of PTM has generated returns of 14.33% and 17.70% during the last one and three months, respectively.

Collins Foods Limited (ASX:CKF)

Collins Foods Limited is involved in the management, operations, and administration of restaurants across Asia and Europe. During FY20, the Company reported revenue amounting to A$981.7 million, reflecting a rise of 8.9% and underlying EBITDA for the period stood at A$120.6 million with an increase of 6.3%. CKF declared fully franked final dividend amounting to 10.5 cents per ordinary share, which brought the total FY20 dividend to 20.0 cps.

The Company closed the FY20 with a healthy balance sheet in a turbulent environment, which was supported by strong operating cash flows, effective cash management, as well as tight controls on capital and operational expenditures during the peak of the crisis.

DO READ: What investors need to know about these food stocks?

On 16 July 2020, the stock of CKF closed at A$9.600 per share with an increase of 4.009%. The stock of CKF has generated returns of 22.74% and 33.96% during the last one month and three months, respectively.

The Star Entertainment Group Limited (ASX:SGR)

The Star Entertainment Group Limited is involved in the management of integrated resorts with gaming, entertainment and hospitality services. Recently, the Company advised the market that a patron who visited The Star Sydney on 4 July 2020 has returned a positive test for COVID-19. However, the Company is working closely with NSW Health to respond to this information, including the conduct of contact tracing.

In another update, the Company stated that it welcomes the decision of the Queensland Government to end the second Gold Coast casino licence process. SGR and the Queensland Government have mutually agreed to complete the exclusive negotiation process regarding a Global Tourism Hub on the Gold Coast as agreement could not be reached.

On 16 July 2020, the stock of SGR closed at A$2.705 per share with a decline of 0.551%. The stock of SGR has generated returns of -11.40% and 16.24% during the last one month and three months, respectively.

 

 


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