Monday, September 24, 2018
Amcor Limited (AMC):
Packaging giant Amcor will have a new president of rigid plastics come November, Eric Roegner today announced as the successor to current president Mike Schmitt. Mr Roegner joins from Arconic engineered products and solutions, and with a degree in aerospace and mechanical engineering. After a 7 year stint in the role, Mr Schmitt will become Amcor executive vice president.
Bank of Queensland Limited (BOQ):
Bank of Queensland remains under margin pressure despite recent repricing of its standard variable rates, according to analysts at Morgan Stanley. In a note the analysts say they don’t think BOQ has repriced enough to stem funding pressures and stabilise margins. The bank repriced its SVR mortages by about 11bps in early July, below that of the 15bps by its peers and Morgan Stanley says it would need to further pull that price level to stabilise its margins - pressure from which sees its revise FY19/20 earnings estimates down by 3 per cent. Ahead of its results to be released on October 4, it says it expects a below consensus figure. “We have trimmed our 2H18E margin forecasts and are looking for 7bp h-o-h decline,” analyst Andrew Stadnik says. “We also expect a $30 million restructuring charge to be announced, but we think capital initiatives are contingent on the sale of St Andrews to Freedom Insurance.” Mr Stadnik keeps the bank at Underweight and cuts its price target to $9.30 from $9.50.
BHP Billiton Limited (BHP):
BHP chairman Ken MacKenzie says the company’s petroleum business needs more exploration success to cement itself as a long-term core unit within the big miner, as a steep production -decline looms in the wake of its $US10.8 billion ($15bn) US shale exit. Mr MacKenzie reportedly told analysts in London this week he was “very happy” with BHP’s portfolio. But he added that for the Houston-based petroleum business to remain a long-term core unit, it would need to continue recent successes in exploration after more than a decade without major finds. BHP’s petroleum production could hit a 20-year low this year as conventional oil and gas production declines. It is set for further falls in the future as Bass Strait, North West Shelf and Gulf of Mexico output diminishes. But BHP chief Andrew Mac-kenzie last month said production should dip, rather than slide, because recent US Gulf of Mexico exploration success — reversing a decade of misses — and the early stage acquisition of the Mexican offshore Trion discovery should provide growth.
Centuria Industrial Reit (CIP):
The takeover battle for the listed Centuria Industrial REIT (CIP) has become increasingly hostile, with Centuria Capital (CNI) pushing to spill the board of suitor Propertylink. Propertylink last week undertook a sharemarket raid on the industrial trust and made a $755 million hostile takeover proposal for the trust, which controls a $1 billion property portfolio. Centuria Industrial REIT’s manager, Centuria Capital, owns a 10.9 per cent interest in suitor Propertylink and has taken a dim view of the bid. Centuria Capital, headed by John McBain, said it had “lost confidence” in the Propertylink board and was “reluctantly” calling for a meeting to renew the board, raising concerns including a strategy to “excessively leverage” the suitor, performance and dilution. Centuria Capital said Propertylink had committed to about $130m in extra debt financing to buy a stake in the target and estimated the suitor’s gearing had risen to “pre-GFC levels” of about 49 per cent.
Flight Centre Travel Group Ltd (FLT):
Flight Centre has announced plans to roll out ‘living itineraries’ to Australian travellers as it acquires travel software company Umapped. The company said today that it has acquired the Toronto-based technology company, which provides travel consultants access to collaborative features, chat and real-time updates delivered to customers. “We continue to invest in systems and teams that can surface our expertise, but also make millions of engagements with our customers easier and more personal,” Flight Centre chief executive Graham Turner said. “We have been impressed with the platform and believe it can have a positive impact on our consultants’ productivity and on our customers’ travel experiences.” Flight Centre said the acquisition will enhance its mobile and web offering, enabling it to deliver upgraded documentation, better templates and itinerary management.
Propertylink Group (PLG):
The Warburg Pincus-backed real estate entity ESR has made a $693 million takeover bid for Propertylink after the target itself lobbed an offer for Centuria Industrial REIT just days ago. ESR is offering $1.15 per share for Propertylink. Last week, Propertylink made a hostile $755 million takeover bid for Centuria Industrial in a scrip offer that includes 33c cash for each Centuria Industrial unit and 2.5327 Propertylink shares. The proposal is conditional on Propertylink securing at least 50.1 per cent of CIP units, although Centuria has a near 20 per cent holding and is trying to spill the board in its attempts to fend off an attack. ESR’s offer is conditional.
Qantas Airways Limited (QAN):
Qantas and Cathay Pacific have announced a new codeshare agreement, renewing a partnership that the Flying Kangaroo scrapped six years ago. The new deal will see Qantas add its code to Cathay Pacific and Cathay Dragon services within Asia from Hong Kong, to ten cities across India, Myanmar, Sri Lanka and Vietnam, and on Cathay Pacific’s long haul services to Perth and Cairns. In turn, Cathay will add its code to 13 routes on Qantas’ domestic network in Australia, subject to regulatory approval. Qantas International chief executive Alison Webster said the new codeshare would provide customers with access to an expanded network. “Building on the relationship we have with Cathay Pacific through oneWorld, we’ll offer customers travelling from Australia more connections across Asia via Hong Kong,” Ms Webster said. “This new codeshare partnership also forms part of our growth strategy for the broad Asia region with strong demand for travel between Australia and Asia.”
Specialty Fashion Group Ltd (SFH):
Specialty Fashion Group chief Daniel Bracken is jumping ship to lead embattled jewellery chain Michael Hill. In a note to the market this morning, Michael Hill said its current chief Phil Taylor had resigned to focus on a health issue, and that Mr Bracken would take the reigns from November 15. The incoming chief most recently led the restructure of the groups brands, what has seen a significant uplift in the stock’s price and what Michael Hill will likely be looking to emulate. “We are confident that Daniel is the right candidate to successfully lead the company against the backdrop of a rapidly-changing retail environment,” Michael Hill chairman Emma Hill said.
Village Roadshow Ltd (VRL):
Listed theme park owner Village Roadshow flagged improved earnings for 2019 as it swung to full-year profit. Unveiling a net profit attributable to members of $219,000, compared to a net loss of $66.7m the prior year, the company said it anticipates it will return to producing improved operating profits in fiscal year 2019. “The group’s brands are well recognised and respected and all of the group’s businesses are focussed on ensuring that their customers have an enjoyable entertainment experience to encourage repeat visitation,” the company said. The company did not declare a final dividend but said that directors intend to reinstate the payment of dividends as soon as it is deemed appropriate. Village booked a $7.3m net loss before material items for the full-year to June 30, which totalled $7.5m included gains on disposal of investments and businesses of $156.9m and impairment and other non-cash adjustments of $167.6m. That included the impairment of assets at Wet’n’Wild Sydney of $24.7m and impairment of goodwill relating to the Gold Coast theme parts of $95m, as well as $8.4m in restructuring costs. Earnings before interest, tax, depreciation and amortisation was $90.9m, down from $136.3m the prior year.
(Source: AIMS)
Amcor Limited (AMC):
Packaging giant Amcor will have a new president of rigid plastics come November, Eric Roegner today announced as the successor to current president Mike Schmitt. Mr Roegner joins from Arconic engineered products and solutions, and with a degree in aerospace and mechanical engineering. After a 7 year stint in the role, Mr Schmitt will become Amcor executive vice president.
Bank of Queensland Limited (BOQ):
Bank of Queensland remains under margin pressure despite recent repricing of its standard variable rates, according to analysts at Morgan Stanley. In a note the analysts say they don’t think BOQ has repriced enough to stem funding pressures and stabilise margins. The bank repriced its SVR mortages by about 11bps in early July, below that of the 15bps by its peers and Morgan Stanley says it would need to further pull that price level to stabilise its margins - pressure from which sees its revise FY19/20 earnings estimates down by 3 per cent. Ahead of its results to be released on October 4, it says it expects a below consensus figure. “We have trimmed our 2H18E margin forecasts and are looking for 7bp h-o-h decline,” analyst Andrew Stadnik says. “We also expect a $30 million restructuring charge to be announced, but we think capital initiatives are contingent on the sale of St Andrews to Freedom Insurance.” Mr Stadnik keeps the bank at Underweight and cuts its price target to $9.30 from $9.50.
BHP Billiton Limited (BHP):
BHP chairman Ken MacKenzie says the company’s petroleum business needs more exploration success to cement itself as a long-term core unit within the big miner, as a steep production -decline looms in the wake of its $US10.8 billion ($15bn) US shale exit. Mr MacKenzie reportedly told analysts in London this week he was “very happy” with BHP’s portfolio. But he added that for the Houston-based petroleum business to remain a long-term core unit, it would need to continue recent successes in exploration after more than a decade without major finds. BHP’s petroleum production could hit a 20-year low this year as conventional oil and gas production declines. It is set for further falls in the future as Bass Strait, North West Shelf and Gulf of Mexico output diminishes. But BHP chief Andrew Mac-kenzie last month said production should dip, rather than slide, because recent US Gulf of Mexico exploration success — reversing a decade of misses — and the early stage acquisition of the Mexican offshore Trion discovery should provide growth.
Centuria Industrial Reit (CIP):
The takeover battle for the listed Centuria Industrial REIT (CIP) has become increasingly hostile, with Centuria Capital (CNI) pushing to spill the board of suitor Propertylink. Propertylink last week undertook a sharemarket raid on the industrial trust and made a $755 million hostile takeover proposal for the trust, which controls a $1 billion property portfolio. Centuria Industrial REIT’s manager, Centuria Capital, owns a 10.9 per cent interest in suitor Propertylink and has taken a dim view of the bid. Centuria Capital, headed by John McBain, said it had “lost confidence” in the Propertylink board and was “reluctantly” calling for a meeting to renew the board, raising concerns including a strategy to “excessively leverage” the suitor, performance and dilution. Centuria Capital said Propertylink had committed to about $130m in extra debt financing to buy a stake in the target and estimated the suitor’s gearing had risen to “pre-GFC levels” of about 49 per cent.
Flight Centre Travel Group Ltd (FLT):
Flight Centre has announced plans to roll out ‘living itineraries’ to Australian travellers as it acquires travel software company Umapped. The company said today that it has acquired the Toronto-based technology company, which provides travel consultants access to collaborative features, chat and real-time updates delivered to customers. “We continue to invest in systems and teams that can surface our expertise, but also make millions of engagements with our customers easier and more personal,” Flight Centre chief executive Graham Turner said. “We have been impressed with the platform and believe it can have a positive impact on our consultants’ productivity and on our customers’ travel experiences.” Flight Centre said the acquisition will enhance its mobile and web offering, enabling it to deliver upgraded documentation, better templates and itinerary management.
Propertylink Group (PLG):
The Warburg Pincus-backed real estate entity ESR has made a $693 million takeover bid for Propertylink after the target itself lobbed an offer for Centuria Industrial REIT just days ago. ESR is offering $1.15 per share for Propertylink. Last week, Propertylink made a hostile $755 million takeover bid for Centuria Industrial in a scrip offer that includes 33c cash for each Centuria Industrial unit and 2.5327 Propertylink shares. The proposal is conditional on Propertylink securing at least 50.1 per cent of CIP units, although Centuria has a near 20 per cent holding and is trying to spill the board in its attempts to fend off an attack. ESR’s offer is conditional.
Qantas Airways Limited (QAN):
Qantas and Cathay Pacific have announced a new codeshare agreement, renewing a partnership that the Flying Kangaroo scrapped six years ago. The new deal will see Qantas add its code to Cathay Pacific and Cathay Dragon services within Asia from Hong Kong, to ten cities across India, Myanmar, Sri Lanka and Vietnam, and on Cathay Pacific’s long haul services to Perth and Cairns. In turn, Cathay will add its code to 13 routes on Qantas’ domestic network in Australia, subject to regulatory approval. Qantas International chief executive Alison Webster said the new codeshare would provide customers with access to an expanded network. “Building on the relationship we have with Cathay Pacific through oneWorld, we’ll offer customers travelling from Australia more connections across Asia via Hong Kong,” Ms Webster said. “This new codeshare partnership also forms part of our growth strategy for the broad Asia region with strong demand for travel between Australia and Asia.”
Specialty Fashion Group Ltd (SFH):
Specialty Fashion Group chief Daniel Bracken is jumping ship to lead embattled jewellery chain Michael Hill. In a note to the market this morning, Michael Hill said its current chief Phil Taylor had resigned to focus on a health issue, and that Mr Bracken would take the reigns from November 15. The incoming chief most recently led the restructure of the groups brands, what has seen a significant uplift in the stock’s price and what Michael Hill will likely be looking to emulate. “We are confident that Daniel is the right candidate to successfully lead the company against the backdrop of a rapidly-changing retail environment,” Michael Hill chairman Emma Hill said.
Village Roadshow Ltd (VRL):
Listed theme park owner Village Roadshow flagged improved earnings for 2019 as it swung to full-year profit. Unveiling a net profit attributable to members of $219,000, compared to a net loss of $66.7m the prior year, the company said it anticipates it will return to producing improved operating profits in fiscal year 2019. “The group’s brands are well recognised and respected and all of the group’s businesses are focussed on ensuring that their customers have an enjoyable entertainment experience to encourage repeat visitation,” the company said. The company did not declare a final dividend but said that directors intend to reinstate the payment of dividends as soon as it is deemed appropriate. Village booked a $7.3m net loss before material items for the full-year to June 30, which totalled $7.5m included gains on disposal of investments and businesses of $156.9m and impairment and other non-cash adjustments of $167.6m. That included the impairment of assets at Wet’n’Wild Sydney of $24.7m and impairment of goodwill relating to the Gold Coast theme parts of $95m, as well as $8.4m in restructuring costs. Earnings before interest, tax, depreciation and amortisation was $90.9m, down from $136.3m the prior year.
(Source: AIMS)
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