AUSTRALIA MARKET
Friday, June 23, 2017
Australia and New Zealand Banking Group Limited （ANZ）； Commonwealth Bank Of Australia (CBA); National Australia Bank (NAB); Westpac Banking Corporation (WBC):
South Australia imposes tax on big banks › Business says it’s an ‘outrageous cash grab’ › Piggybacks on Morrison impost The Business Council of Australia has warned that Australia is rapidly becoming a ‘‘laughing stock’’ in global investment circles because of new bank taxes as erratic decisions by both federal and state governments ‘‘carelessly undermine’’ the rules of doing business. Australia’s big four banks are furious about the move by the South Australian government to impose a new state based version of the federal government’s major bank levy, while the broader business community warned it was partly the fault of the Turnbull government for ‘‘letting the genie out of the bottle’’ in the first place. The new state-based tax of 0.015 per cent on liabilities is forecast to raise $370 million over the next four years and one of the revenue raising measures announced in South Australia’s budget yesterday. The tax will be raised on top of the federal government’s Major Bank Levy of 0.06 per cent on liabilities which the government has forecast to raise $6.2 billion nationally over the next four years. The federal government’s major bank levy passed into law on Monday evening after weeks of spirited public debate.
Cromwell Property Group (CMW); Investa Office Fund (IOF):
Earnings and distributions at Cromwell Property Group could fall by as much as 8 per cent over the next three years after assets are sold and as rents drop, according to JP Morgan. The fresh take on Cromwell comes as the Brisbane-based fund manager, led by Paul Weightman, still mulls over the prospect of a binding takeover bid for Investa Office Fund. Cromwell’s earnings and distributions could fall to 7.6-7.8¢ per unit between the 2018 and 2020 fiscal years, according to JP Morgan’s Benjamin Brayshaw, Richard Jones and Krzysztof Kaczmarek in a note this week. That represents an 8 per cent drop on the company’s own guidance for 2017, and an even steeper fall on previous JP Morgan earnings estimates. Despite that, Cromwell has still outperformed its peers by 7 percent since its last result.
Dexus (DXS):
Dexus has been downgraded by analysts at investment bank UBS following the office giant’s purchase of $1 billion worth of property. The downgrade came alongside other analysis from CLSA estimating that Dexus’ deal to buy a share in the MLC Centre in Sydney would initially be decretive to earnings. Dexus also announced a $500 million raising through Macquarie and Goldman Sachs. UBS didn’t hold back on its criticism, suggesting that Dexus should have shown more discipline. ‘‘While the price for the MLC Centre was sharper than we anticipated, we were more surprised Dexus was the buyer. Dexus has previously shown more price discipline which may now be in question,’’ UBS James Druce and Grant McCasker said in a note to clients. UBS downgraded the stock to a sell rating from a neutral rating and now has a price target of $9.57.
Domino’s Pizza Enterprises Limited (DMP):
the days when everyone wanted slice of dominos are clearly over, with the former market darling’s shares down nearly 20 percent this year. The bellyache for investors is likely to linger said Citi, which initiated its coverage of the stock with a sell and a price target of $45.50, saying sales growth is set to slow while evaluations look stretched. Boosted by acquisitions, dominos delivered annual saes growth of 26 percent over the past three years, but Citi expects that to slow to 14 percent over the next three years. However, six analyst still see the stocks as a ‘buy’ and five a ‘hold’ with an average price target of $68.30. Shares fell 3.6 percent to a 16-month low of $52.6.
(Source: AIMS)
Friday, June 23, 2017
Australia and New Zealand Banking Group Limited （ANZ）； Commonwealth Bank Of Australia (CBA); National Australia Bank (NAB); Westpac Banking Corporation (WBC):
South Australia imposes tax on big banks › Business says it’s an ‘outrageous cash grab’ › Piggybacks on Morrison impost The Business Council of Australia has warned that Australia is rapidly becoming a ‘‘laughing stock’’ in global investment circles because of new bank taxes as erratic decisions by both federal and state governments ‘‘carelessly undermine’’ the rules of doing business. Australia’s big four banks are furious about the move by the South Australian government to impose a new state based version of the federal government’s major bank levy, while the broader business community warned it was partly the fault of the Turnbull government for ‘‘letting the genie out of the bottle’’ in the first place. The new state-based tax of 0.015 per cent on liabilities is forecast to raise $370 million over the next four years and one of the revenue raising measures announced in South Australia’s budget yesterday. The tax will be raised on top of the federal government’s Major Bank Levy of 0.06 per cent on liabilities which the government has forecast to raise $6.2 billion nationally over the next four years. The federal government’s major bank levy passed into law on Monday evening after weeks of spirited public debate.
Cromwell Property Group (CMW); Investa Office Fund (IOF):
Earnings and distributions at Cromwell Property Group could fall by as much as 8 per cent over the next three years after assets are sold and as rents drop, according to JP Morgan. The fresh take on Cromwell comes as the Brisbane-based fund manager, led by Paul Weightman, still mulls over the prospect of a binding takeover bid for Investa Office Fund. Cromwell’s earnings and distributions could fall to 7.6-7.8¢ per unit between the 2018 and 2020 fiscal years, according to JP Morgan’s Benjamin Brayshaw, Richard Jones and Krzysztof Kaczmarek in a note this week. That represents an 8 per cent drop on the company’s own guidance for 2017, and an even steeper fall on previous JP Morgan earnings estimates. Despite that, Cromwell has still outperformed its peers by 7 percent since its last result.
Dexus (DXS):
Dexus has been downgraded by analysts at investment bank UBS following the office giant’s purchase of $1 billion worth of property. The downgrade came alongside other analysis from CLSA estimating that Dexus’ deal to buy a share in the MLC Centre in Sydney would initially be decretive to earnings. Dexus also announced a $500 million raising through Macquarie and Goldman Sachs. UBS didn’t hold back on its criticism, suggesting that Dexus should have shown more discipline. ‘‘While the price for the MLC Centre was sharper than we anticipated, we were more surprised Dexus was the buyer. Dexus has previously shown more price discipline which may now be in question,’’ UBS James Druce and Grant McCasker said in a note to clients. UBS downgraded the stock to a sell rating from a neutral rating and now has a price target of $9.57.
Domino’s Pizza Enterprises Limited (DMP):
the days when everyone wanted slice of dominos are clearly over, with the former market darling’s shares down nearly 20 percent this year. The bellyache for investors is likely to linger said Citi, which initiated its coverage of the stock with a sell and a price target of $45.50, saying sales growth is set to slow while evaluations look stretched. Boosted by acquisitions, dominos delivered annual saes growth of 26 percent over the past three years, but Citi expects that to slow to 14 percent over the next three years. However, six analyst still see the stocks as a ‘buy’ and five a ‘hold’ with an average price target of $68.30. Shares fell 3.6 percent to a 16-month low of $52.6.
(Source: AIMS)
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