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2018-08-14 14:27

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APA Group (APA):
The board of Australia’s biggest gas pipeline company APA Group has recommended a $12.98 billion buyout offer from a consortium led by Hong Kong’s CK Infrastructure. If the deal goes through, APA shareholders will receive $11 cash per share and make CK Infrastructure the major player in Australia’s east coast gas pipeline network. CK Infrastructure, leading a consortium with CK Asset Holdings and Power Assets Holdings, said it is seeking regulatory approval.
 
Aurizon Holdings Limited (AZJ):
Aurizon Holdings paired a return to annual profit with caution around its outlook, as it battles headwinds ranging from the loss of iron-ore contracts to a regulatory dispute over the prices it can charge customers to use its rail network. Aurizon reported a net profit of $560.1 million for the 12 months through June, swinging from a loss of $37.2 million a year earlier when it absorbed $927 million in impairment charges and costs tied to a business overhaul. Directors of the company declared a final dividend of 13.1 cents a share, up 47 per cent on 8.9 cents a year ago. That represented a payout ratio of 100pc.
 
Bendigo and Adelaide Bank Ltd (BEN):
Junior bank Bendigo and Adelaide has booked an underlying cash profit of $445.1 million for the 2018 full year, up 6.4 per cent on 2017.Statutory after tax profit grew 1.1 per cent to $434.5 million. The bank’s net interest margin climbed 14 basis points from the 2017 full year to 2.36 per cent. Bendigo declared a fully-franked dividend of 35c per share, up 1c on the year before.
 
BlueScope Steel Limited (BSL):
BlueScope Steel lifted its underlying net profit by 27 per cent in 2018, beating consensus estimates, and outlined plans to expand its North Star steel mill in Ohio over the next three years at a cost of up to US$700 million ($960 million). Net profit rose to $826m from $652m for the year to the end of June on improved steel margins with earnings in the first half of the current financial year expected to increase 10 per cent on the last half’s result implying a figure of about $820m. The company’s bottomline net profit surged by 119 per cent to $1.569 billion from $715 million last year after the full reversal of a $216m impairment of plant and equipment at its Australian Steel Products unit and the recognition of $325m of previously unbooked Australian tax losses. Underlying earnings before interest and tax also beat consensus after rising 15 per cent to $1.269bn compared with the consensus figure of $1.207bn. The result marked “our best half since December 2008,” said Mr Vassella. “It was driven by strong demand and steel spreads in our US and Australasian markets.” BlueScope expects to add up to 900,000 metric tonnes a year of steelmaking capacity at its North Star plant under a plan which would take two to three years to develop with an update expected at its February 2019 results.
 
Capilano Honey Ltd (CZZ):
Roc Partners and Wattle Hill have lobbed a $190 million bid for Capilano Honey in a deal backed by Australian superannuation funds. The offer equates to $20.06 per share, with the company’s shares last trading at $15.65, taking its market value at Friday’s close to $148m. The suitors - private equity fund Wattle Hill and Australian private equity firm Roc Partners - are being advised by Macquarie Capital and law firm KWM as well as accounting firm PwC. The bid offers investors the opportunity to take cash or scrip.
 
Domain Holdings Australia Ltd (DHG):
In its first annual report as a listed entity, Domain has booked a net loss of $6.2 million. The real estate and media company reported pro forma EBITDA growth of 12.5 per cent, what chairman Nick Falloon said was evidence of its strength as a separately listed company to former parent Fairfax. “This performance is testament to the strength and unrelenting focus of the entire Domain team and their continued delivery of our strategy. Pleasingly, full-year EBITDA margins for the Group increased from 32.1pc to 32.4pc,” he said. “We welcome the proposed merger of Fairfax Media with Nine Entertainment Co, announced in July, which is subject to approvals. We only see considerable upside for Domain through the additional marketing and audience reach of the combined businesses.” Looking ahead and the first six weeks of the new year have hinted at a more difficult market ahead. “The first six weeks of FY19 H1 saw a subdued listings environment in Sydney in July against a high base of year-on-year comparison,” it said. “For FY19, Domain’s pro forma underlying costs (excluding investment in new transactions businesses) are expected to increase mid-single digits. Pro forma total costs are expected to increase high-single digits.”
 
GPT Group (GPT):
Property investment firm GPT Group have delivered net profit of $728.5 million for 1H18, driven by what it described as strong valuation gains in its portfolio. The group recorded total portfolio return of 11.5 per cent for FY18, and occupancy of 97.4pc. Chief Bob Johnston said the Group was on track to meet its guidance of FFO per security growth of 3 per cent and distribution per security growth of 3pc. “The Group continues to make solid progress advancing its development pipeline, with construction on our planned 26,000 square metre office tower in Parramatta expected to commence by the end of the year, and our office development in Sydney Olympic Park and two Sydney logistics facilities on track for completion in the second half of 2018.” “GPT remains in strong financial shape, with net gearing of 24.7 per cent and a weighted average debt term of 6.6 years.”
 
JB Hi-Fi Limited (JBH):
Electronics retailer JB Hi-Fi said annual net profit rose 35 per cent amid strong sales of computers, drones and communications devices in Australia, which offset challenges in the home-appliance market in the latter part of the year.The company (JBH) said net profit was $233.2 million in the year through June, compared to its revised guidance for net profit of approximately $230 million. Underlying profit, which strips out onetime costs associated with its purchase of The Good Guys chain and New Zealand-related impairments in the previous year, grew 12 per cent. Overall revenue rose 22 per cent in the fiscal year to $6.85 billion, in line with prior guidance company declared a final dividend of 46 cents per share, bringing the total dividend for the fiscal year to $1.32 per share, an increase of 12 per cent. Looking ahead, the company said total sales in fiscal year 2019 —which started in July — would be about $7.1 billion. Sales growth in July, however, slowed at its various businesses. The company said total sales growth in July for its JB Hi-Fi Australia stores was 2.9 per cent, down from 9.3 per cent in July 2017. Total sales growth for The Good Guys in July was 2.7 per cent, down from 6.8 per cent in July 2017. And in New Zealand, JB Hi-Fi’s total sales fell 2.1 per cent in July, compared to a 0.7 per cent decline in July 2017.
 
Nufarm Limited (NUF):
Nufarm shares dived 16 per cent to a 2.5-year low of $6.27 after a US court on Friday awarded US$289m ($395m) against Monsanto for failing to warn of potential cancer risks from its Roundup and Ranger Pro herbicides. The jury verdict, in San Francisco Superior Court, is the latest setback for Monsanto, now part of Bayer, as its flagship weed killer Roundup comes under increased scrutiny following the 2015 determination from the World Health Organization that glyphosate, the active ingredient in Roundup herbicides, is probably carcinogenic. It’s also the latest blow to Nufarm’s share price, which has fallen as much as 25pc since a drought-related profit warning earlier this month. Nufarm controls the marketing rights for Monsanto’s Roundup in Australia and New Zealand. As of last Monday, Nufarm shares were the 20-month most shorted in the ASX 200 with 8.5pc sold short. NUF last down 11pc at $6.68.
 
Wesfarmers Ltd (WES):
Wesfarmers has announced plans to sell its Kmart Tyre and Auto Service business to German-based Continental AG for $350 million, the latest asset sale by the Australian conglomerate as it seeks to add flexibility to its balance sheet. Wesfarmers (WES) said it expects to report pre-tax profit on the sale of between $270m to $275m. The sale is expected to complete in the first quarter of the 2019 financial year, but must get approval from regulators including the Australian Competition and Consumer Commission and Foreign Investment Review Board. Wesfarmers managing director Rob Scott said in a statement that the sale locks in value for Wesfarmers shareholders since the unit was acquired along with the Coles grocery business in 2007. Kmart Tyre has 258 stores in Australia with more than 1200 employees. Wesfarmers has been selling assets lately, including coal mines, and plans to spin off the Coles grocery unit in the coming months. Wesfarmers could use the proceeds to invest in higher-growth businesses in an effort to increase shareholder returns.
(Source: AIMS)
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