AUMAKE INTERNATIONAL LIMITED(AU8):
Investors have poured into Australia's only listed daigou business, boosting the share price more than 25 per cent this week, enthused by the company's recent acquisition spree. AuMake Australia - a retail business that connects Australian suppliers directly with daigou shoppers and Chinese tourists - this week announced the acquisition of wool manufacturer Jumbuck Australia. The deal comes just one week after AuMake acquired Health Essence, a health supplements business, and one month after raising $6 million and listing on the ASX. "We are having to move quickly because there is just so much demand for Australian products in China," says Keong Chan, chairman of AuMake.
Cochlear Ltd (COH)：
Cochlear shares are down 0.8 per cent today after Citi downgraded the hearing device maker to sell from neutral on valuation grounds. The firm's valuation is "sky high" the analysts said, noting that Cochlear is trading on price to earnings for the next twelve months of 40 times consensus. “It looks slightly expensive even for our above-consensus FY18-20eEPS growth of 16/16/12 per cent. “In our view, whilst earnings risk remains to the upside from its world-best product portfolio and current investments in SG&A, the trading multiple is still too high and fully reflects the upside risk. Citi now has a target price of $160, up from $155, on a roll-forward basis. “We believe the stock is now priced for perfection and does not discount for potential risks ," the broker said.
Domino’s Pizza Group Plc (DMP)：
Domino's Pizza Enterprises is sticking to its forecast for 20 per cent profit growth this year even though sales growth in Australia has slowed in recent months after record gains a year ago. Domino’s chief executive Don Meij yesterday reaffirmed the fast food franchisor's guidance for 20 per cent underlying net profit growth in 2018 but warned that gains in the December-half would be "appreciably lower" than the 15 per cent growth in the previous December half. The update disappointed investors who had hoped Domino's would upgrade profit growth guidance. Domino’s upgraded forecasts to 30 per cent at last year's annual meeting and again in February to 32.5 per cent. But it missed guidance, with full-year profits growing 29 per cent in 2017.
Goodman Group (GMG):
Commercial and industry property group Goodman has reaffirmed its full-year operating earnings guidance for the 2018 financial year. The company expects a 6 per cent lift in earnings per security to 45.7 cents in 2017/18, amid continued demand for high-quality industrial real estate, thanks to increased consumerism, the rise of e-commerce and supply chain efficiencies. Goodman says it has also undertaken initiatives in the first quarter to provide financial flexibility and position the company favourably for the long term.
James Hardie Industries PLC (JHX):
Building materials supplier James Hardie has booked a 14 per cent drop in first half-net profit as ongoing manufacturing inefficiencies and higher productions costs weighed on margins, but underlying performance is improving. James Hardie booked a profit for the six months to September 30 to $US123.8 million ($A173.3 million), down from.$US144.1 million. First-half underlying profit was down four per cent at $US135.6 million, but second quarter underlying profit was down by only one per cent at $US73.9 million. “While we continue to make progress quarter to quarter, our manufacturing inefficiencies and production costs led to a decrease in EBIT margin of 0.9 percentage points for the quarter and 3.1 percentage points for the half year compared to the prior corresponding periods," James Hardie boss Louis Gries said in a statement. But Citi analysts said the "overall result looks solid", pointing to better than expected pricing growth, as well as a lift in margins in the US business.
Mirvac Group (MGR):
Mirvac, led by Susan Lloyd-Hurwitz, had shown less interest in facilitating the play and instead chose to focus on opportunities in its own office portfolio, including building two major Sydney office towers. There is talk that Mirvac could be again looking at the business and its preferred option would be to cherrypick assets out of the IOF portfolio. The thinking behind that option is that if CIC is still in the fold, then given its title as the mainland sovereign wealth fund it will not be keen to embark on an aggressive hostile takeover. There is also speculation that Investa Wholesale Funds Management, with its 20 per cent stake in IOF, could look to essentially privatise the fund by unwinding its complicated ownership structure. The problem, some observers say, is that the valuations are too high at the moment to prompt immediate action.
Santos Ltd (STO)：
Santos said today that it will take the controversial Narrabri coal seam gas project in NSW back into its core portfolio amid moves to resume growing the oil and gas producer as it recovers from the collapse in oil prices. Chief executive Kevin Gallagher also revealed an expansion in exploration in Papua New Guinea and a deal in Queensland to free up Cooper Basin gas for the stretched southern gas market at an annual investor briefing in Sydney. Mr Gallagher also pointed to prospects to develop the Barossa gas field off the northern coast, which holds "multi" trillion cubic feet of gas, to maintain gas flows into the Darwin liquefied natural gas (LNG) plant. Efforts to reduce debt remain a focus, with Santos announcing a further $US350 million ($455 million) paying down of a loan. It is targeting debt of less than $US2 billion by the end of 2019.
Suncorp Group Ltd (SUN):
Suncorp is on the way to building a sizeable capital war chest as the $200 million it wanted to spend on Tower New Zealand heads back to its balance sheet. The diversified Queensland financial group said it would retain the 19.9 per cent stake it held through its subsidiary Vero in the overseas insurance group. Questions remain though as to how long that will be the case and analysts are watching to see if the stock is sold down. UBS is Suncorp’s corporate adviser and was overseeing the NZ deal. Vero had appealed to the New Zealand Commerce Commission after the regulator knocked back its offer on the grounds that the domestic insurance market would be too concentrated if the transaction went ahead. Despite pressing on with the appeal, Vero pulled out yesterday and Tower New Zealand said it would proceed with a capital raising to shore up growth plans. The savings Suncorp will make in backing out of the deal are expected to be rolled up in the proceeds it expects to get in the next few months from its life insurance sale. The expectation was that it would fetch at least $1.5 billion, but Citi flagged in a research note it could be as low as $1bn.
（Source：AIMS）
Investors have poured into Australia's only listed daigou business, boosting the share price more than 25 per cent this week, enthused by the company's recent acquisition spree. AuMake Australia - a retail business that connects Australian suppliers directly with daigou shoppers and Chinese tourists - this week announced the acquisition of wool manufacturer Jumbuck Australia. The deal comes just one week after AuMake acquired Health Essence, a health supplements business, and one month after raising $6 million and listing on the ASX. "We are having to move quickly because there is just so much demand for Australian products in China," says Keong Chan, chairman of AuMake.
Cochlear Ltd (COH)：
Cochlear shares are down 0.8 per cent today after Citi downgraded the hearing device maker to sell from neutral on valuation grounds. The firm's valuation is "sky high" the analysts said, noting that Cochlear is trading on price to earnings for the next twelve months of 40 times consensus. “It looks slightly expensive even for our above-consensus FY18-20eEPS growth of 16/16/12 per cent. “In our view, whilst earnings risk remains to the upside from its world-best product portfolio and current investments in SG&A, the trading multiple is still too high and fully reflects the upside risk. Citi now has a target price of $160, up from $155, on a roll-forward basis. “We believe the stock is now priced for perfection and does not discount for potential risks ," the broker said.
Domino’s Pizza Group Plc (DMP)：
Domino's Pizza Enterprises is sticking to its forecast for 20 per cent profit growth this year even though sales growth in Australia has slowed in recent months after record gains a year ago. Domino’s chief executive Don Meij yesterday reaffirmed the fast food franchisor's guidance for 20 per cent underlying net profit growth in 2018 but warned that gains in the December-half would be "appreciably lower" than the 15 per cent growth in the previous December half. The update disappointed investors who had hoped Domino's would upgrade profit growth guidance. Domino’s upgraded forecasts to 30 per cent at last year's annual meeting and again in February to 32.5 per cent. But it missed guidance, with full-year profits growing 29 per cent in 2017.
Goodman Group (GMG):
Commercial and industry property group Goodman has reaffirmed its full-year operating earnings guidance for the 2018 financial year. The company expects a 6 per cent lift in earnings per security to 45.7 cents in 2017/18, amid continued demand for high-quality industrial real estate, thanks to increased consumerism, the rise of e-commerce and supply chain efficiencies. Goodman says it has also undertaken initiatives in the first quarter to provide financial flexibility and position the company favourably for the long term.
James Hardie Industries PLC (JHX):
Building materials supplier James Hardie has booked a 14 per cent drop in first half-net profit as ongoing manufacturing inefficiencies and higher productions costs weighed on margins, but underlying performance is improving. James Hardie booked a profit for the six months to September 30 to $US123.8 million ($A173.3 million), down from.$US144.1 million. First-half underlying profit was down four per cent at $US135.6 million, but second quarter underlying profit was down by only one per cent at $US73.9 million. “While we continue to make progress quarter to quarter, our manufacturing inefficiencies and production costs led to a decrease in EBIT margin of 0.9 percentage points for the quarter and 3.1 percentage points for the half year compared to the prior corresponding periods," James Hardie boss Louis Gries said in a statement. But Citi analysts said the "overall result looks solid", pointing to better than expected pricing growth, as well as a lift in margins in the US business.
Mirvac Group (MGR):
Mirvac, led by Susan Lloyd-Hurwitz, had shown less interest in facilitating the play and instead chose to focus on opportunities in its own office portfolio, including building two major Sydney office towers. There is talk that Mirvac could be again looking at the business and its preferred option would be to cherrypick assets out of the IOF portfolio. The thinking behind that option is that if CIC is still in the fold, then given its title as the mainland sovereign wealth fund it will not be keen to embark on an aggressive hostile takeover. There is also speculation that Investa Wholesale Funds Management, with its 20 per cent stake in IOF, could look to essentially privatise the fund by unwinding its complicated ownership structure. The problem, some observers say, is that the valuations are too high at the moment to prompt immediate action.
Santos Ltd (STO)：
Santos said today that it will take the controversial Narrabri coal seam gas project in NSW back into its core portfolio amid moves to resume growing the oil and gas producer as it recovers from the collapse in oil prices. Chief executive Kevin Gallagher also revealed an expansion in exploration in Papua New Guinea and a deal in Queensland to free up Cooper Basin gas for the stretched southern gas market at an annual investor briefing in Sydney. Mr Gallagher also pointed to prospects to develop the Barossa gas field off the northern coast, which holds "multi" trillion cubic feet of gas, to maintain gas flows into the Darwin liquefied natural gas (LNG) plant. Efforts to reduce debt remain a focus, with Santos announcing a further $US350 million ($455 million) paying down of a loan. It is targeting debt of less than $US2 billion by the end of 2019.
Suncorp Group Ltd (SUN):
Suncorp is on the way to building a sizeable capital war chest as the $200 million it wanted to spend on Tower New Zealand heads back to its balance sheet. The diversified Queensland financial group said it would retain the 19.9 per cent stake it held through its subsidiary Vero in the overseas insurance group. Questions remain though as to how long that will be the case and analysts are watching to see if the stock is sold down. UBS is Suncorp’s corporate adviser and was overseeing the NZ deal. Vero had appealed to the New Zealand Commerce Commission after the regulator knocked back its offer on the grounds that the domestic insurance market would be too concentrated if the transaction went ahead. Despite pressing on with the appeal, Vero pulled out yesterday and Tower New Zealand said it would proceed with a capital raising to shore up growth plans. The savings Suncorp will make in backing out of the deal are expected to be rolled up in the proceeds it expects to get in the next few months from its life insurance sale. The expectation was that it would fetch at least $1.5 billion, but Citi flagged in a research note it could be as low as $1bn.
（Source：AIMS）
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