A2 Milk has welcomed a tougher stance on counterfeit products from the Chinese government, after the State Administration of Market Regulation yesterday outlined measures to ensure the success of its e-commerce legislation. The rules govern all goods and services purchased via platforms such as Alibaba, key platforms for A2 sales into China. The announcement referenced an intention to increase the supervision and enforcement of the legislation and standardisation of e-commerce business practices. “We welcome measures that protect the rights and safety of consumers and the overall integrity of ecommerce channels and will continue to work closely with our partners through this process,” A2 chief Jayne Hrdlicka told the market.
Boral Limited (BLD):
Boral says it’s entered into a property development management deed with Mirvac over its Scoresby site in Victoria. Under the agreement, Mirvac will manage the urban development of the 171-hectare site over a multi-decade period, including a proposed new housing community and substantial new parklands. Boral says expects to receive about $66 million of EBITDA through to full-year 2026, including $3 million in FY2019. Additional significant earnings are projected from the development of Scoresby from FY2027 through to anticipated project completion in 2035, it says. Boral expects Scoresby to deliver in excess of $300 million of earnings over the life of the project, subject to rezoning and market conditions.
Collins Foods Ltd (CKF):
KFC and Sizzler operator Collins Foods has announced chief operating officer Drew O’Malley as successor to current chief Graham Maxwell ahead of his retirement next July. Collins said Mr O’Malley had demonstrated strong capability in his current role and that the long lead time would allow for a smooth transition. “The Board is confident that Drew’s leadership will continue to drive the Company’s strategy of growth which includes building new KFC restaurants, developing the Taco Bell brand and strengthening organisational capability to deliver on organic growth,” chairman Robert Kaye said. Current chief Mr Maxwell has been with the company since 2013.
CSL Limited (CSL):
CSL shares have slumped by 4 per cent in opening trade, denting the index by 14 points, after flagging a drop in albumin sales as it transitions to its own distribution model in China. The company said it expects lower reported sales of albumin in China as a result of transitioning to a “good supply practice licence”, which will allow CSL it to sell its own products in the domestic Chinese market without third party distributors. Sales of the blood protein are expected at $340 million to $370m in FY20 - a drop from $500m last year. Shares in the company fell by 4 per cent at the open to $210.25, last at $211.57. The stock is weighing heavily on the broader index, pulling the health sector down by 2.4 per cent and while the ASX200 trades flat with a 1.2 point gain.
Domino's Pizza Enterprises Ltd. (DMP):
Domino’s has addressed UK media speculation on management changes, saying current CEO Europe Andrew Rennie was committed to his role and was not eyeing the top job at the UK and Ireland arm. Media reports had Mr Rennie pegged to replace outgoing managing director of Domino’s Pizza Group, the holder of the master franchise in the UK and Ireland. “Domino’s Pizza Enterprises advises that there is no substance to that speculation and Andrew has confirmed that he is committed to his current role,” it said in a statement. Mr Rennie reaffirmed he was a significant holder of DMP shares and looked forward to delivering on growth plans for the company.
GPT Group (GPT):
GPT has raised $850 million in just three hours in a sign of the hunger of investors to seek out higher yielding vehicles. The diversified property group will use the cash to buy a 25 per cent stake in the $2 billion Darling Park Towers 1 and 2; the Cockle Bay retail podium and a share of the planned $1 billion office tower on the Sydney waterfront. Once completed GPT and its wholesale office fund will own 70 per cent of the complex alongside AMP Capital's office fund. The response has prompted investors to expect other real estate investment trusts to follow suit and tap the market for cash for new projects.
Lynas Corporation Ltd (LYC):
Lynas is still stockpiling production of its major rare earth element, neodymium praseodymium, despite a sharp increase in prices as rare earths find themselves in the middle of the US-China trade war. Lynas, the only major proven producer outside China of rare earths, said its decision will allow it to consolidate its position as a preferred supplier. The ASX-listed firm, a takeover target for Wesfarmers earlier this year, last month unveiled detailed plans to spend $500 million to boost production and set up an initial processing facility in WA. Shares in the company are higher by 5.7 per cent on Friday, at $2.79.
Macquarie Group Ltd (MQG):
Macquarie Group has paid £265.3 million ($487 million) to buy Premier Technical Services, a listed British company that supplies and tests building safety equipment, offering shareholders more than double the listed price. The offer of 210.1 pence a share represented a hefty 141.5 per cent premium to the closing price of 87 pence on June 19, according to a statement filed to the London Stock Exchange. Macquarie has set up a new subsidiary company, Bernard Bidco, under the auspices of the British branch of its investment and financing unit, Macquarie Principal Finance, to make the acquisition and take ownership of the company. As part of the deal, co-founder and CEO Paul Teasdale and managing director Roger Teasdale will reinvest a combined £18.1 million of their personal share-sale bonanza back into the company, and will remain at the helm. The company held its annual general meeting last Monday, but the board's statement to the AGM didn't mention the looming takeover.
Qantas Airways Limited (QAN):
Qantas stands to lose a share of the lucrative business frequent flyer market after the airline jacked up the number of points needed to redeem seats at the pointy end of the plane by up to 15 per cent. "Qantas is a great airline and partner of ours, but potentially this will make some frequent flyers look elsewhere and consider other options," said Anna Burgdorf, general manager product and marketing for Travel Associates. "People are incredibly loyal, but when it comes to points, they just want simplicity and easy point redemption, and of course the lowest number of points required possible." While Qantas' much-anticipated overhaul of its frequent flyer program - one of the most profitable arms of the national carrier, and the largest airline loyalty program in Australia with 12.7 million members – provided big wins for those happy to redeem points in economy, would-be business and first class passengers have less to celebrate.
Westpac Banking Corp (WBC):
Westpac has made an abrupt about-face, reinstating a key lending restriction on Thursday night after incurring the prudential regulator's wrath by removing it without approval earlier this week. Westpac infuriated the prudential regulator after it went rogue and released a handbrake on residential property lending that has been in place across all Australian banks since 2014. A spokesman for the Australian Prudential Regulation Authority said it was surprised a big four bank had lowered the serviceability floor before a consultation process designed to refine the standard had been completed. “Authorised deposit-taking institutions that are not following the current guidance must, through compensating controls, be able to demonstrate to APRA that they are continuing to lend prudently,” the APRA spokesman said.
Woolworths Group Ltd (WOW):
Woolworths has followed up its $30 million investment in meal kits supplier Marley Spoon by launching a partnership with British-based food tech start-up Spoon Guru. Spoon Guru has developed AI-based technology that helps consumers seek and filter foods and recipes based on their dietary preferences, health objectives. lifestyle choices and religion. After launching an app in 2016 to help shoppers find health and specialty foods, Spoon Guru developed the technology into patented software that is being used by online retailers to enable customers to search for vegan, vegetarian, kosher and gluten, dairy, nut and sugar-free foods, and check nutritional information. Using artificial intelligence, the platform analyses every ingredient and its nutritional value and allocates appropriate dietary tags to each product, enabling large, unstructured data sets to be easily searched and accurately filtered.
（Source: AIMS）
Latest comments