A2 Milk Company Ltd (A2M):
The a2 Milk Company has stuck with its prior broad guidance for further revenue growth this financial year underpinned by strong gains in both English and China label infant formula and liquid milk in the United States. The $6.6 billion company told market watchers at the Citi investor conference in Sydney on Wednesday that revenue for first three months of the new year has been consistent with expectations, however, no firm numbers were given on full-year guidance. In the 2018 financial year, a2 Milk delivered a 116 per cent surge in full-year net profit to $NZ195.7 million ($177.9 million) supported by strong sales in China and Australia and substantial jumps in earnings and cash generation. On Wednesday, new chief executive Jayne Hrdlicka said the focus will continue to be on growth initiatives in targeted emerging markets and new product development. In China, which has underpinned the company's enormous growth story, a2 Milk said market share of its a2 Platinum formula climbed to 5.6 per cent from 5.1 per cent in June, while distribution in mother and baby stores reached 12,000 sites up from 10,000 in the month. In Australia/NZ, its baby formula market share was stable at around 32 per cent in grocery and pharmacy, while milk value share was greater than 10 per cent in grocery, moderately higher than the 10 per cent share recorded at the end of 2018. The stock surged 77¢, or 8.5 per cent, to $9.80 each on the positive update by 1025am AEDT.
Afterpay Touch Group Ltd (APT):
Payday lenders, debt management firms and Afterpay will be the subject of a new Senate inquiry into parts of the finance sector that have escaped the scrutiny of the Hayne royal commission. After a year of scandal for the country's biggest financial institutions, Labor has proposed the new inquiry into parts of the financial world that are often slammed by consumer advocates, and are either unregulated or subject to much less regulation than banks. Buy now, pay later schemes such as Afterpay - which consumer groups say exploits a loophole in lending laws - would also be put under the microscope. Mr Brody said it appeared that more customers were contacting the National Debt Helpline about Afterpay. Fiona Guthrie, the chief executive of Financial Counselling Australia, said payday lenders and debt negotiation providers were a significant cause of problems for customers who sought the help of a financial counsellor. These tended to affect lower-income customers the most, she said.
Asia Pacific Data Centre Group (AJD) & Nextdc Ltd (NXT):
Earlier this month NextDC lobbed an offer to buy out its landlord Asia Pacific Data Centres, leaving it now to deal with the targets $29 million default. Bankwest yesterday issued APDC with a notice of subsisting default and forebearance, required to be paid within 14 days of the notice. NextDC said it could have adverse implications for AJD shareholders, potentially hindering their ability to pay the special distribution of 2c due to be paid on November 14. But, the data centre operator, who has a 97.61pc interest in AJD, said it had plenty in the bank: “NextDC had liquidity in excess of $900 million at 30 September 2018, including unaudited cash reserves of over $600 million and $300 million of undrawn senior debt facilities via a syndicated senior secured debt facility”.
BHP Billiton Ltd (BHP):
BHP has cut full-year copper production guidance after an acid plant at outage at the Olympic Dam mine in South Australia and a fire at its Spence mine in Chile. But the big miner has met analyst expectations across its four businesses – iron ore, copper, coal and petroleum - in its first-quarter production report and made more oil and gas discoveries in the US Gulf of Mexico and off Trinidad and Tobago. BHP chief Andrew Mackenzie said: “We delivered a two per cent increase in copper equivalent production (BHP’s measure of production across all commodities) despite maintenance at a number of our operations. “In petroleum, we have extended our exploration success and encountered hydrocarbons in three wells.” In its September-quarter report, released today, BHP said it had cut copper production by about 50,000 tonnes to between, 1.62 million and 1.705 million tonnes, from previous guidance of between 1.675 and 1.77 million tonnes. At Olympic Dam, where BHP has been struggling to get consistent results and guidance downgrades are far from rare, full-year output of between 170,000 and 180,000 tonnes is now expected.
Charter Hall Long WALE REIT (CLW):
Charter Hall Long Wale REIT is tapping the market for $60 million. The raise is by way of an institutional placement through investment bank UBS. The placement represents 14.9 million securities or 6.4 per cent of the securities on offer. Securities are offered at $4.04 each, a 2.9 per cent discount to the five-day average trading price of $4.16. The funds are being used to help pay for office and industrial property acquisitions worth $118m. The assets include the National Archives industrial property in Chester Hill, NSW and a 50 per cent interest in the Optima Centre, Perth, WA.
Lynas Corporation Ltd (LYC):
Rare earths producer Lynas has warned that if it is not granted an extension to its waste management permissions by the Malaysian government before the end of the month, the amount of residue stored at its processing plant will exceed environmental regulations. It comes ahead of a review into its Malaysia operations, after Lynas’ plant at Kuantan became a target for political candidates who sought local support by making allegations about the plant’s environmental and health impacts in the lead up to the country’s 2012 election. The company released a statement to the market this morning following media reports speculating on the company’s compliance with waste regulations, as well as its mitigation plans arising from the review. Lynas had previously received temporary permission from the Malaysian government to store non-toxic neutralization underflow residue at its processing plant for its reuse, as the government’s preferred of two waste management options under Malaysian regulations. But that permission to store the residue onsite is due to end on October 31, and Lynas said it had received indications that the new government might prefer the “disposal” option over the “reuse” one.
Origin Energy Ltd (ORG):
Origin Energy had conceded confidence in big business has sunk to an all-time low as the impact of the banking royal commission spreads across corporate Australia. Chairman Gordon Cairns, also a director of Macquarie Bank and a former board member of Westpac, said it was critical for the energy operator to have the right culture including a “noble purpose”, a vision and appropriate values. New energy minister Angus Taylor has accused the energy giants of acting like the big four banks in breaching the trust of Australian consumers and warned in August the government is prepared to “wield a big stick” to reduce high power prices if needed. That sparked talk the government may replicate the banks’ royal commission with a similar examination of the energy sector. The company also reiterated its plan to push ahead with its prospective Beetaloo shale prospect in the Northern Territory. It also plans to clarify its involvement where necessary with industry lobby groups given shareholder interest in understanding whether Origin’s objectives are aligned with public policies.
Reject Shop Ltd (TRS):
The Reject Shop is facing diving sales that have worsened since September, forcing the discount retailer to shred its profit guidance for the 2019 financial year as it looks out to possibly deteriorating conditions over summer. And the retailer has laid much of the blame on the lack of wages growth in Australia combined with the higher cost of living, especially higher mortgage repayments, as discretionary spending for the average shopper becomes tighter. It has also pointed to excessive promotions and discounting in the sector from other general merchandisers which has made the space incredibly competitive. One of the first retailers to issue a profit warning in the lead up to the annual general meeting season, The Reject Shop has updated its own recent trading performance before its own AGM this week. The retailer said this morning that comparable sales for the first 15 weeks of FY19 have fallen to -2.4 per cent. The company said falling sales since the beginning of the financial year had accelerated despite more funds aimed at marketing and other initiatives.
Tabcorp Holdings Ltd (TAH):
Tabcorp is expected to bring in long-term adviser UBS to oversee its bid to buy the West Australian TAB, with the process to privatise the asset finally under way. The Mark McGowan government announced last week that the TAB would be the first asset it would sell to tackle the state’s debt. Tabcorp has been identified as the most logical buyer and will draft investment bank UBS to help put together its offer. UBS advised Tabcorp on its merger with Tatts Group, which ran for more than a year. It has been estimated that the asset could sell for up to $1 billion, but a deal will not be on the table until later next year. Selling the TAB requires the government to change the legislation. The WA parliament is to debate the matter next year. The state government will open a tender for investment banks to advise it on the sale of the TAB.
Telstra Corporation Ltd (TLS):
Telstra’s shareholders have clearly consigned to the bin the telco’s aspirations to remould itself as a technology company, with the protest vote lodged at the annual general meeting yesterday raising the stakes significantly for the company to deliver on the “Telstra 2022” strategic overhaul. With no silver bullet available, Telstra’s senior management needs to deliver on the purported benefits of the T22 overhaul but even that will not guarantee share price performance for investors. According to Jason Teh, chief executive of fund manager Vertium, there is no evidence the T22 initiative will deliver benefits large enough to cover the NBN-induced $3 billion hit to the telco’s earnings. Adding to its problems, Mr Teh says, is that Telstra has its work cut out becoming lean enough to make do with shrinking margins.
Wesfarmers Ltd (WES):
The federal government has called on supermarkets to stop selling milk for $1 a litre in a bid to help secure the future of the dairy industry. Agriculture Minister David Littleproud slammed Coles for its allegedly uncaring attitude -towards dairy farmers suffering in the drought, branding its limited 10c-a-litre drought milk levy on its three-litre milk only, “lazy, half-baked and uncaring”. Mr Littleproud said the big supermarkets had made billions on the backs of farmers over the past few years but appeared unwilling to take any “social responsibility” for their long-term viability. Coles said yesterday it had -already committed more than $12 million to assist drought-affected farmers across Australia with a guarantee the extra 30c collected on its three-litre milk sales would be returned to producers battling higher costs during the drought. Coles also warned that, based on Dairy Australia figures, a 10c per litre levy on all fresh milk would cost consumers $250 million a year on their grocery bills.
（Source: AIMS）
The a2 Milk Company has stuck with its prior broad guidance for further revenue growth this financial year underpinned by strong gains in both English and China label infant formula and liquid milk in the United States. The $6.6 billion company told market watchers at the Citi investor conference in Sydney on Wednesday that revenue for first three months of the new year has been consistent with expectations, however, no firm numbers were given on full-year guidance. In the 2018 financial year, a2 Milk delivered a 116 per cent surge in full-year net profit to $NZ195.7 million ($177.9 million) supported by strong sales in China and Australia and substantial jumps in earnings and cash generation. On Wednesday, new chief executive Jayne Hrdlicka said the focus will continue to be on growth initiatives in targeted emerging markets and new product development. In China, which has underpinned the company's enormous growth story, a2 Milk said market share of its a2 Platinum formula climbed to 5.6 per cent from 5.1 per cent in June, while distribution in mother and baby stores reached 12,000 sites up from 10,000 in the month. In Australia/NZ, its baby formula market share was stable at around 32 per cent in grocery and pharmacy, while milk value share was greater than 10 per cent in grocery, moderately higher than the 10 per cent share recorded at the end of 2018. The stock surged 77¢, or 8.5 per cent, to $9.80 each on the positive update by 1025am AEDT.
Afterpay Touch Group Ltd (APT):
Payday lenders, debt management firms and Afterpay will be the subject of a new Senate inquiry into parts of the finance sector that have escaped the scrutiny of the Hayne royal commission. After a year of scandal for the country's biggest financial institutions, Labor has proposed the new inquiry into parts of the financial world that are often slammed by consumer advocates, and are either unregulated or subject to much less regulation than banks. Buy now, pay later schemes such as Afterpay - which consumer groups say exploits a loophole in lending laws - would also be put under the microscope. Mr Brody said it appeared that more customers were contacting the National Debt Helpline about Afterpay. Fiona Guthrie, the chief executive of Financial Counselling Australia, said payday lenders and debt negotiation providers were a significant cause of problems for customers who sought the help of a financial counsellor. These tended to affect lower-income customers the most, she said.
Asia Pacific Data Centre Group (AJD) & Nextdc Ltd (NXT):
Earlier this month NextDC lobbed an offer to buy out its landlord Asia Pacific Data Centres, leaving it now to deal with the targets $29 million default. Bankwest yesterday issued APDC with a notice of subsisting default and forebearance, required to be paid within 14 days of the notice. NextDC said it could have adverse implications for AJD shareholders, potentially hindering their ability to pay the special distribution of 2c due to be paid on November 14. But, the data centre operator, who has a 97.61pc interest in AJD, said it had plenty in the bank: “NextDC had liquidity in excess of $900 million at 30 September 2018, including unaudited cash reserves of over $600 million and $300 million of undrawn senior debt facilities via a syndicated senior secured debt facility”.
BHP Billiton Ltd (BHP):
BHP has cut full-year copper production guidance after an acid plant at outage at the Olympic Dam mine in South Australia and a fire at its Spence mine in Chile. But the big miner has met analyst expectations across its four businesses – iron ore, copper, coal and petroleum - in its first-quarter production report and made more oil and gas discoveries in the US Gulf of Mexico and off Trinidad and Tobago. BHP chief Andrew Mackenzie said: “We delivered a two per cent increase in copper equivalent production (BHP’s measure of production across all commodities) despite maintenance at a number of our operations. “In petroleum, we have extended our exploration success and encountered hydrocarbons in three wells.” In its September-quarter report, released today, BHP said it had cut copper production by about 50,000 tonnes to between, 1.62 million and 1.705 million tonnes, from previous guidance of between 1.675 and 1.77 million tonnes. At Olympic Dam, where BHP has been struggling to get consistent results and guidance downgrades are far from rare, full-year output of between 170,000 and 180,000 tonnes is now expected.
Charter Hall Long WALE REIT (CLW):
Charter Hall Long Wale REIT is tapping the market for $60 million. The raise is by way of an institutional placement through investment bank UBS. The placement represents 14.9 million securities or 6.4 per cent of the securities on offer. Securities are offered at $4.04 each, a 2.9 per cent discount to the five-day average trading price of $4.16. The funds are being used to help pay for office and industrial property acquisitions worth $118m. The assets include the National Archives industrial property in Chester Hill, NSW and a 50 per cent interest in the Optima Centre, Perth, WA.
Lynas Corporation Ltd (LYC):
Rare earths producer Lynas has warned that if it is not granted an extension to its waste management permissions by the Malaysian government before the end of the month, the amount of residue stored at its processing plant will exceed environmental regulations. It comes ahead of a review into its Malaysia operations, after Lynas’ plant at Kuantan became a target for political candidates who sought local support by making allegations about the plant’s environmental and health impacts in the lead up to the country’s 2012 election. The company released a statement to the market this morning following media reports speculating on the company’s compliance with waste regulations, as well as its mitigation plans arising from the review. Lynas had previously received temporary permission from the Malaysian government to store non-toxic neutralization underflow residue at its processing plant for its reuse, as the government’s preferred of two waste management options under Malaysian regulations. But that permission to store the residue onsite is due to end on October 31, and Lynas said it had received indications that the new government might prefer the “disposal” option over the “reuse” one.
Origin Energy Ltd (ORG):
Origin Energy had conceded confidence in big business has sunk to an all-time low as the impact of the banking royal commission spreads across corporate Australia. Chairman Gordon Cairns, also a director of Macquarie Bank and a former board member of Westpac, said it was critical for the energy operator to have the right culture including a “noble purpose”, a vision and appropriate values. New energy minister Angus Taylor has accused the energy giants of acting like the big four banks in breaching the trust of Australian consumers and warned in August the government is prepared to “wield a big stick” to reduce high power prices if needed. That sparked talk the government may replicate the banks’ royal commission with a similar examination of the energy sector. The company also reiterated its plan to push ahead with its prospective Beetaloo shale prospect in the Northern Territory. It also plans to clarify its involvement where necessary with industry lobby groups given shareholder interest in understanding whether Origin’s objectives are aligned with public policies.
Reject Shop Ltd (TRS):
The Reject Shop is facing diving sales that have worsened since September, forcing the discount retailer to shred its profit guidance for the 2019 financial year as it looks out to possibly deteriorating conditions over summer. And the retailer has laid much of the blame on the lack of wages growth in Australia combined with the higher cost of living, especially higher mortgage repayments, as discretionary spending for the average shopper becomes tighter. It has also pointed to excessive promotions and discounting in the sector from other general merchandisers which has made the space incredibly competitive. One of the first retailers to issue a profit warning in the lead up to the annual general meeting season, The Reject Shop has updated its own recent trading performance before its own AGM this week. The retailer said this morning that comparable sales for the first 15 weeks of FY19 have fallen to -2.4 per cent. The company said falling sales since the beginning of the financial year had accelerated despite more funds aimed at marketing and other initiatives.
Tabcorp Holdings Ltd (TAH):
Tabcorp is expected to bring in long-term adviser UBS to oversee its bid to buy the West Australian TAB, with the process to privatise the asset finally under way. The Mark McGowan government announced last week that the TAB would be the first asset it would sell to tackle the state’s debt. Tabcorp has been identified as the most logical buyer and will draft investment bank UBS to help put together its offer. UBS advised Tabcorp on its merger with Tatts Group, which ran for more than a year. It has been estimated that the asset could sell for up to $1 billion, but a deal will not be on the table until later next year. Selling the TAB requires the government to change the legislation. The WA parliament is to debate the matter next year. The state government will open a tender for investment banks to advise it on the sale of the TAB.
Telstra Corporation Ltd (TLS):
Telstra’s shareholders have clearly consigned to the bin the telco’s aspirations to remould itself as a technology company, with the protest vote lodged at the annual general meeting yesterday raising the stakes significantly for the company to deliver on the “Telstra 2022” strategic overhaul. With no silver bullet available, Telstra’s senior management needs to deliver on the purported benefits of the T22 overhaul but even that will not guarantee share price performance for investors. According to Jason Teh, chief executive of fund manager Vertium, there is no evidence the T22 initiative will deliver benefits large enough to cover the NBN-induced $3 billion hit to the telco’s earnings. Adding to its problems, Mr Teh says, is that Telstra has its work cut out becoming lean enough to make do with shrinking margins.
Wesfarmers Ltd (WES):
The federal government has called on supermarkets to stop selling milk for $1 a litre in a bid to help secure the future of the dairy industry. Agriculture Minister David Littleproud slammed Coles for its allegedly uncaring attitude -towards dairy farmers suffering in the drought, branding its limited 10c-a-litre drought milk levy on its three-litre milk only, “lazy, half-baked and uncaring”. Mr Littleproud said the big supermarkets had made billions on the backs of farmers over the past few years but appeared unwilling to take any “social responsibility” for their long-term viability. Coles said yesterday it had -already committed more than $12 million to assist drought-affected farmers across Australia with a guarantee the extra 30c collected on its three-litre milk sales would be returned to producers battling higher costs during the drought. Coles also warned that, based on Dairy Australia figures, a 10c per litre levy on all fresh milk would cost consumers $250 million a year on their grocery bills.
（Source: AIMS）
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