3 NZX stocks that have moved up this week

  • November 13, 2020 05:13 PM NZDT
  • Team Kalkine
3 NZX stocks that have moved up this week

Summary

  • Meridian Energy and Warehouse Group shares have risen by 7.9% and 2.8% in the past 5 days.
  • Meridian Energy witnessed a rise of 94% in hydro storage and 12.7% in retail sales volume in September to 8 October 2020.
  • The Warehouse Group reported strong sales growth majorly for Noel Lemming and Torpedo7 for Q1 FY20, while Wellington Drive Technologies’ revenue fell by 42.3% for 9 months to 30 September and stood at $26.5 million.

NZ stock market seems to be creating a huge buzz around the significant progress of COVID-19 vaccine, while the mystery over the new case in Auckland remained unsolved. Meanwhile, Biden’s win in the US also boosted the global stock markets, with the effects already visible on NZ shares when the market opened on 9 November.

 

Significantly, S&P/NZX 50 rose by over 333 points in the first four days of November's second week.

Let’s have a look at how these 3 NZX stocks have performed this week.

Meridian Energy Limited

 

Meridian Energy Limited (NZX:MEL), hydro and wind power plant operator, reported results for the September month.

As per the Group’s operating report for September, national hydro storage increased from 56% to 94% of the historical average in the month to 8 October 2020.

September 2020 was a record month of wind generation for Meridian in NZ with national electricity demand being 0.1% higher than the same month in 2019. Further, retail sales volumes in the month were about 12.7% higher than the same month in 2019.

From 9 November-13 November, shares of MEL have grown from $5.89 to $6.17, representing growth of 4.75%.

At the time of writing, on 13 November, Meridian Energy was trading at $6.33, up by 2.18%.

The Warehouse Group Limited

 

The Warehouse Group Limited (NZX:WHS) reported Group sales of $738.5 million, up by 6.3% on Q1 FY20, with particularly strong sales growth for Noel Leeming and Torpedo7, up by 11.5% and 41.8%.

The Group’s online demand persisted to grow in Q1 of FY21 with sales growing by 58% to $83.7 million. The earnings outlook for FY21 will be contingent on Q2 trading period.

ALSO READ: NZX Listed The Warehouse Group (NZX:WHS) bitten by the online bug, physical stores repurposed

From 9 November-12 November, shares of the Warehouse Group have grown from $2.42 to $2.46, representing growth of 1.65%.

At the time of writing, on 13 November, The Warehouse Group was trading at $2.5, up by 4.60%.

Wellington Drive Technologies

 

Wellington Drive Technologies Limited (NZX:WDT) did not witness any improvement in demand during Q3, with persistent regional slowdowns and customer shutdown. Revenue dropped by 42.3% compared to the same quarter last year to $26.5 million for 9 months ended 30 September.

Let’s have a look at the performance of key metrics of WDT for 9 months ended September.

  • Wellington’s net operating expenses amounted to $6.8 million, a $2 million decrease compared to the same period in 2019.
  • The Company achieved a positive EBIDTA of $1.07 million but was lower than pcp
  • Demand from America is improving with new orders from Latin America and Europe.

WDT expects to launch its Connect TM Monitor retrofit device for cooler and ambient applications and begin production tests of its new connected controller in Q4. The Company’s latest forecasts indicate Q4 revenue of around $10 million.

From 9 November-12 November, shares of the Wellington Drive have gained 1.47%, between $0.068 to $0.069.

On 13 November, at the time of writing, Wellington Drive shares were trading at $0.058, down by 13.43%.

(NOTE: Currency is reported in NZ Dollar unless stated otherwise)

 


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