A Good Run-up for these Stocks in the Past Week

  • May 12, 2020 NZST
  • Team Kalkine
A Good Run-up for these Stocks in the Past Week

S&P/NZX50 Index increased by 2.10% in the previous week ended May 8, 2020. During the same period, Trustpower Limited (NZX: TPW) rose by 7.78% while Sky Network Television Limited (NZX: SKT) witnessed a rise of 8.30%. In the week to May 8, 2020, Kathmandu Holdings Limited (NZX: KMD) rose by 22.47%, Tourism Holdings Limited (NZX: THL) increased by 21.94% and Pushpay Holdings Limited (NZX: PPH) rose by 49.29%.

Let us have a look at these 5 stocks.

Pushpay Holdings Limited (NZX: PPH)

Pushpay Achieves FY20 Guidance

For the year ended 31 March 2020, the company reported total revenue of US$129.8 million, up by 32% and operating revenue stood at US$127.5 million, up by 33%. The company provided the following guidance, all of which were either achieved or exceeded.

Key Numbers (Source: Company Reports)

The company stated that its NPAT fell by US$2.8 Mn over the year ended 31st March 2020, from US$18.8 Mn to US$16.0 Mn, reflecting a fall of 15%.

The previous financial year consisted one-time benefit arising from previously unrecognised tax losses and deferred R&D expenditure of US$20.9 Mn, that contributed to net gain amounting to US$18.8 Mn.

The company increased its gross margin by five percentage points, from 60% to 65% for the year ended 31 March 2020. The EBITDAF increased by US$23.5 million to US$25.1 million, an increase of 1,506%. While the company increased its operating revenue over the year to 31st March 2020 by 33%, its total operating expenses witnessed a rise of 5%. As the percentage of operating revenue, the company’s total operating expenses witnessed an improvement by 13 percentage points i.e. from 65% to 52%.

Future Outlook

In the coming future, the company expects to witness further strong growth as it continues to execute on the strategy to gain the share of the market. The company is expecting to achieve EBITDAF of between US$48.0 million and US$52.0 million for the full year ending 31 March 2021. The company continues to focus towards future-proofing its business.

Also, it is refining strategies that would be allowing it to realise the potential in the long term, while maintaining prudent financial discipline at the same time.

Tourism Holdings Limited (NZX: THL)

Tourism Holdings Limited happens to be a global tourism operator. THL is the largest provider of RVs for rent and sale in ANZ, and the second largest in North America.

The company’s rental businesses in Australia, New Zealand, and the United States, are considered as an essential service to provide motorhomes for COVID-19 related usage. Numerous employees of the company have either been placed on discretionary leave, been furloughed, left the business or similar.

As per the release dated April 3, 2020, the company’s current facilities provide for up to $306 Mn of debt available and its current net debt is around $200 Mn.

Kathmandu Holdings Limited (NZX: KMD)

In the month of April, KMD’s online sales were 2.5x to 3x higher as compared to the previous year. The company reported strongest growth rates in its largest market i.e. Australia.

  • In Australia, over recent days, most Kathmandu and Rip Curl stores in New South Wales and Queensland have reopened on a trial basis, with robust safety protocols in place;
  • Kathmandu and Rip Curl stores in North America, New Zealand, Brazil, Europe, and Japan remain shut and are expected to reopen as soon as the Government allows.

Outlook

Due to closure of the company’s store network from late March, there has been a significant negative impact on FY20 earnings. The stores have started to reopen in Australia, but full impact of coronavirus, including wholesale channel and partners, could not be forecast without the knowledge of timetable for the return to more normal trading conditions in several international jurisdictions in which KMD operates.

SKY Network Television Limited (NZX: SKT)

Recently, the company appointed Keith Smith to the Board. He is been hired to fill a casual vacancy. The company comes under “Essential Services” provider with its news and entertainment content delivered to New Zealanders over its reliable satellite platform. The company has however withdrawn its guidance for revenue and EBITDA for FY20 due to uncertainty surrounding the Covid-19 outbreak. The company has taken various measures to encounter the impact of pandemic. It has reduced its operating expenses, deferred non-essential capital projects and implemented a travel and hiring freeze.

Trustpower Limited (NZX: TPW)

Trustpower Limited is New Zealand’s 5th largest electricity generator as well as 4th largest energy retailer by market share.

Simon Clarke Decided to Leave TPW

As per the recent release, Simon Clarke, GM Technology and Delivery, has decided to leave the company and he would be finishing up with Trustpower on June 5, 2020. Notably, he has been on TPW’s senior executive team for the time span of around 9 years.

The company has recently stated that its robust balance sheet ensures that TPW is well placed if adverse conditions impact the cash flow or profitability. The company has been monitoring and assessing all the metrics throughout the business, which also includes cash collection and credit.

 


Disclaimer
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. The above article is NOT a solicitation or recommendation to buy, sell or hold the stock of the company (or companies) under discussion. Kalkine does not in any way endorse or recommend individuals, products or services that may be discussed on this site.

 

   
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