AuMake International Limited (AU8):
AuMake chief executive Joshua Zhou was putting the finishing touches on his new store opposite Sydney’s Town Hall at 8:30 on Sunday night when a group of Chinese tourists knocked on the door. “I told them that we were not opening the store until Monday morning but they insisted on coming in,” Mr. Zhou told The Australian yesterday. “They said they were going back to China in the morning and were looking for gifts to take back home. There were four of them who came in and they bought more than $2000 worth of goods.” Listed on the ASX in October, AuMake International is aimed at servicing Chinese tourists and more than 40,000 Australian-based Chinese daigou sending local goods to friends and family back home. Based in western Sydney, Mr. Zhou worked in the travel business, helping Chinese tourists coming to Sydney, before deciding to open a store run by his wife Lyn Zheng to provide the kinds of Australian products that Chinese tourists wanted to buy. He and Ms. Zheng set up five shops aimed at Chinese buyers before joining with Perth-based businessman Keong Chan to list on the ASX to raise more capital to expand the business. Mr. Zhou says the $2000 he took in on Sunday night was good business but it was not a surprise. He said Chinese customers were often prepared to pay a higher amount in Australia to buy goods that they trusted to be genuine because of problems with fake goods sold online in the past.
Mayne Pharma Group Limited (MYX):
Mayne Pharma’s revenue for the first four months of the financial year dropped 12 per cent due to price deflation in the US generic marketplace. Chief executive Scott Richards says group revenue to the end of October fell to $151 million against a backdrop of aggressive contracting behavior by wholesaler and retailer buying alliances. Mr. Richards says Mayne Pharma (MYX), which in August reported an $86 million full-year profit on revenue of $572.6 million, would experience a soft first half but that a range of sales initiatives was already improving performance
Origin Energy Limited (ORG):
Origin Energy shares have jumped to a two-year high after it upped the output from its Eraring coal fired power station to between 15.5 and 16 terra watt hours as it rushes to capitalize on higher wholesale electricity prices. The increased guidance, up 10 per cent on previous output, has also helped fill a gap left by the closure of the Hazelwood and Northern brown coal-fired power stations in Victoria and South Australia respectively. Origin (ORG) told and investor day briefing that it had supported the increased output — the largest power station in the country at 2,200MW, with new coal contracts. Origin, said it had also purchased another 41 petajoules of gas for the domestic market from its partowned Australia-Pacific LNG export facility to ease supply shortfalls and high prices that have sparked fears of a manufacturing shutdown. At 1pm (AEDT), Origin Energy shares were trading 26 cents, or 3 per cent, higher at $8.85, a two-year high.
South32 Limited (S32):
South32 will quit the coal business, with the diversified miner announcing plans to spin off its South African coal operations. South32 — which itself was a spin-off of mining giant BHP Billiton — said yesterday its South African thermal coal operations would become a new stand-alone entity from April next year. The new business will eventually consider a listing on the Johannesburg Stock Exchange at a later date. Such a move would end South32’s involvement in the mining of coal used to generate electricity, although it will continue to mine coking coal in NSW for use in the production of steel. The company’s chief financial officer, Brendan Harris, told The Australian that the separation of the coal assets was consistent with the company’s principles of addressing climate change. South32 will still maintain a significant exposure to South Africa if it does eventually spin off the coal assets, given its ongoing aluminum and manganese operations there, and Mr. Harris said the recent policy uncertainty in the country had not influenced the decision to separate out the coal assets. Shares in South32 closed 9c lower to $3.33 yesterday.
Santos Limited (STO):
Santos suitor Harbour Energy had planned to hold talks late last week with the South Australian government in what observers say is further evidence that the US-based group is serious about launching a revised takeover bid for the Adelaide-based company. It is understood representatives of Harbour Energy, which is backed by private equity firm EIG Partners, had reached out to discuss their intentions for the $10.5 billion listed company and it is possible the meeting took place at the weekend. Harbour Energy, which counts JPMorgan as its banker and Highbury Partnership as its adviser, made a $9.48 billion bid for Santos in August, which was rejected by the board. The offer equated to $4.55 a share, but longterm institutional investors are understood to expect an offer of $6 a share, given most believe in the company’s turnaround story. Hedge funds that hold Santos, on the other hand, are thought to have a lower bar of acceptance, with suggestions they would be more comfortable with a bid price of about $5.60 a share. In recent days, offshore funds had been buying into the stock at a price of about $5.10, which would not be to the disappointment of Harbour Energy, given they are more likely to accept a fresh offer
Telstra Corporation Limited (TLS):
NBN Co’s decision to suspend the rollout of the hybrid fibre-coaxial part of the National Broadband Network could give Telstra a 5 per cent hit to its full-year 2018 earnings and force the telco into a rethink of its dividend policy. Telstra’s shares wobbled as NBN Co boss Bill Morrow announced an immediate halt to NBN services provided over the HFC footprint until service delivery issues were ironed out for existing customers. According to NBN Co, 370,000 homes are already on the NBN via HFC and another 1 million or so premises are ready to receive their service. Almost 3 million homes are slated to be on the HFC footprint but not until NBN Co is confident it can deliver a reliable and quality service over the pay-TV cable. The hiatus is a double-edged sword for Telstra. On one hand, it gets to hold on to valuable customers currently getting their broadband services from Telstra for a little longer, but it does slow the flow of the compensation it gets as customers migrate to the NBN.
(Source: AIMS)
AuMake chief executive Joshua Zhou was putting the finishing touches on his new store opposite Sydney’s Town Hall at 8:30 on Sunday night when a group of Chinese tourists knocked on the door. “I told them that we were not opening the store until Monday morning but they insisted on coming in,” Mr. Zhou told The Australian yesterday. “They said they were going back to China in the morning and were looking for gifts to take back home. There were four of them who came in and they bought more than $2000 worth of goods.” Listed on the ASX in October, AuMake International is aimed at servicing Chinese tourists and more than 40,000 Australian-based Chinese daigou sending local goods to friends and family back home. Based in western Sydney, Mr. Zhou worked in the travel business, helping Chinese tourists coming to Sydney, before deciding to open a store run by his wife Lyn Zheng to provide the kinds of Australian products that Chinese tourists wanted to buy. He and Ms. Zheng set up five shops aimed at Chinese buyers before joining with Perth-based businessman Keong Chan to list on the ASX to raise more capital to expand the business. Mr. Zhou says the $2000 he took in on Sunday night was good business but it was not a surprise. He said Chinese customers were often prepared to pay a higher amount in Australia to buy goods that they trusted to be genuine because of problems with fake goods sold online in the past.
Mayne Pharma Group Limited (MYX):
Mayne Pharma’s revenue for the first four months of the financial year dropped 12 per cent due to price deflation in the US generic marketplace. Chief executive Scott Richards says group revenue to the end of October fell to $151 million against a backdrop of aggressive contracting behavior by wholesaler and retailer buying alliances. Mr. Richards says Mayne Pharma (MYX), which in August reported an $86 million full-year profit on revenue of $572.6 million, would experience a soft first half but that a range of sales initiatives was already improving performance
Origin Energy Limited (ORG):
Origin Energy shares have jumped to a two-year high after it upped the output from its Eraring coal fired power station to between 15.5 and 16 terra watt hours as it rushes to capitalize on higher wholesale electricity prices. The increased guidance, up 10 per cent on previous output, has also helped fill a gap left by the closure of the Hazelwood and Northern brown coal-fired power stations in Victoria and South Australia respectively. Origin (ORG) told and investor day briefing that it had supported the increased output — the largest power station in the country at 2,200MW, with new coal contracts. Origin, said it had also purchased another 41 petajoules of gas for the domestic market from its partowned Australia-Pacific LNG export facility to ease supply shortfalls and high prices that have sparked fears of a manufacturing shutdown. At 1pm (AEDT), Origin Energy shares were trading 26 cents, or 3 per cent, higher at $8.85, a two-year high.
South32 Limited (S32):
South32 will quit the coal business, with the diversified miner announcing plans to spin off its South African coal operations. South32 — which itself was a spin-off of mining giant BHP Billiton — said yesterday its South African thermal coal operations would become a new stand-alone entity from April next year. The new business will eventually consider a listing on the Johannesburg Stock Exchange at a later date. Such a move would end South32’s involvement in the mining of coal used to generate electricity, although it will continue to mine coking coal in NSW for use in the production of steel. The company’s chief financial officer, Brendan Harris, told The Australian that the separation of the coal assets was consistent with the company’s principles of addressing climate change. South32 will still maintain a significant exposure to South Africa if it does eventually spin off the coal assets, given its ongoing aluminum and manganese operations there, and Mr. Harris said the recent policy uncertainty in the country had not influenced the decision to separate out the coal assets. Shares in South32 closed 9c lower to $3.33 yesterday.
Santos Limited (STO):
Santos suitor Harbour Energy had planned to hold talks late last week with the South Australian government in what observers say is further evidence that the US-based group is serious about launching a revised takeover bid for the Adelaide-based company. It is understood representatives of Harbour Energy, which is backed by private equity firm EIG Partners, had reached out to discuss their intentions for the $10.5 billion listed company and it is possible the meeting took place at the weekend. Harbour Energy, which counts JPMorgan as its banker and Highbury Partnership as its adviser, made a $9.48 billion bid for Santos in August, which was rejected by the board. The offer equated to $4.55 a share, but longterm institutional investors are understood to expect an offer of $6 a share, given most believe in the company’s turnaround story. Hedge funds that hold Santos, on the other hand, are thought to have a lower bar of acceptance, with suggestions they would be more comfortable with a bid price of about $5.60 a share. In recent days, offshore funds had been buying into the stock at a price of about $5.10, which would not be to the disappointment of Harbour Energy, given they are more likely to accept a fresh offer
Telstra Corporation Limited (TLS):
NBN Co’s decision to suspend the rollout of the hybrid fibre-coaxial part of the National Broadband Network could give Telstra a 5 per cent hit to its full-year 2018 earnings and force the telco into a rethink of its dividend policy. Telstra’s shares wobbled as NBN Co boss Bill Morrow announced an immediate halt to NBN services provided over the HFC footprint until service delivery issues were ironed out for existing customers. According to NBN Co, 370,000 homes are already on the NBN via HFC and another 1 million or so premises are ready to receive their service. Almost 3 million homes are slated to be on the HFC footprint but not until NBN Co is confident it can deliver a reliable and quality service over the pay-TV cable. The hiatus is a double-edged sword for Telstra. On one hand, it gets to hold on to valuable customers currently getting their broadband services from Telstra for a little longer, but it does slow the flow of the compensation it gets as customers migrate to the NBN.
(Source: AIMS)
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