2 dividend-payers that slipped on ASX – Suncorp Group and Automotive Holdings Group

Update on new programs: Suncorp Group Ltd edged slightly lower on ASX on September 21, 2017 as the group provided an address from its CEO along with a market update. The group’s FY17 NPAT of $1,075 million represented a 3.6% increase over 2016; and the good top line growth, disciplined management of margin, and a sensible balance between reducing overheads and investing in the future led a healthy foundation for time ahead. SUN’s Insurance business also achieved an underlying result well ahead of the prior year 2016. The group has been able to mitigate the impact of major events like Cyclone Debbie, to a great extent in FY17 with the help of reinsurance programs; and has extended those arrangements into FY18. The generous dividend payments and ability to come-up with better products among peers can help Suncorp flourish further. Given this, the group has shed light on its two significant programs of work that include Business Improvement Program (aiming to digitise the customer experience, optimise sales and service, end-to-end process improvement, claims redesign and smarter procurement) to deliver net benefits of $10 million, $195 million and $329 million over the next three years, and acceleration of the Marketplace to deliver benefits faster. The group has also signalled to increase the dividend payout ratio for the period in view of the additional one-off investment associated with the programs. SUN will revert back to the 60-80% target range in FY19.

To read the complete report CLICK HERE. To get your free report CLICK HERE

Costa Group Holdings Ltd Solid growth in Produce Segment

Solid growth in Produce Segment: For FY17, Costa Group Holdings Ltd (ASX: CGC) reported 10.7% (year on year) revenue growth at $909.1m, while posting 29.4% growth in EBITDA at $115.2m (before SGARA and material items). NPAT before SGARA and material items increased by 37.3% to $60.7m while statutory NPAT increased to $57.7m, compared to $25.3m in FY2016. The produce segment delivered a solid result by growing at 9.4% to $786.2 million while reporting total transacted sales more than $1 billion. CF&L revenue growth was up 2.4% on FY2016 with the segment comprising both the wholesale market and logistics operations. Importantly, the Coles Jandakot Western Australia Distribution Centre contract was renewed through to September 2023. The international segment saw a 47.2% increase on transacted sales compared to FY2016 and now encompasses operations in Morocco (African Blue), China and royalty income from the licensing of blueberry genetics used across the Americas and Africa is becoming an important part of business and growth plans.    

To read the complete report CLICK HERE. To get your free report CLICK HERE

Efforts on cost improvement: On 11 August 2017, the Board of Australian Agricultural Company Limited

Efforts on cost improvement: On 11 August 2017, the Board of Australian Agricultural Company Limited (ASX: AAC) announced about the resignation of Managing Director and Chief Executive Officer, Jason Strong. The Board has engaged Egon Zehnder to lead an executive search for a new Managing Director, with a plan to fill the appointment before the end of calendar year 2017 and anticipates the search will include both external and internal candidates.    

To read the complete report CLICK HERE. To get your free report CLICK HERE

Graincorp Ltd.’s On track for strong FY17

On track for strong FY17: Graincorp Ltd.’s (ASX: GNC) stock moved up 5.6% on August 30, 2017 driven by market sentiments. The group had earlier reported an EBITDA of $236 million in the first half of 2017 as compared to $134 million in the prior corresponding period (pcp), and consequently the underlying NPAT rose to $100 million from $32 million of pcp. The group expects to reach their full year EBITDA estimate of $385 million-$425 million and underlying NPAT of $130 million-$160 million. Growing Australian grain harvest and better export volumes, coupled with the group’s network efficiency efforts and managing costs have contributed to the robust result during the period. The group’s average receivals per site increased to 70,000 tons from 40,000 tons of last harvest, driven by a modern and efficient network through Project Regeneration. GNC is also enhancing their sales mix with a better focus on higher margin products. Better canola supply drove their oil supply with lower procurement costs. However, the company has highlighted that continuous pressure on its margins and unfavourable foreign exchange movements have been posing challenges.

To read the complete report CLICK HERE. To get your free report CLICK HERE

3 Food stocks – Graincorp, Australian Agricultural Company and Costa Group Holdings

On track for strong FY17: Graincorp Ltd.’s (ASX: GNC) stock moved up 5.6% on August 30, 2017 driven by market sentiments. The group had earlier reported an EBITDA of $236 million in the first half of 2017 as compared to $134 million in the prior corresponding period (pcp), and consequently the underlying NPAT rose to $100 million from $32 million of pcp. The group expects to reach their full year EBITDA estimate of $385 million-$425 million and underlying NPAT of $130 million-$160 million. Growing Australian grain harvest and better export volumes, coupled with the group’s network efficiency efforts and managing costs have contributed to the robust result during the period. The group’s average receivals per site increased to 70,000 tons from 40,000 tons of last harvest, driven by a modern and efficient network through Project Regeneration. GNC is also enhancing their sales mix with a better focus on higher margin products. Better canola supply drove their oil supply with lower procurement costs. However, the company has highlighted that continuous pressure on its margins and unfavourable foreign exchange movements have been posing challenges.

To read the complete report CLICK HERE. To get your free report CLICK HERE

Magnis Resources Ltd Qld Premier supports the Townsville Lithium-ion Giga factory

Qld Premier supports the Townsville Lithium-ion Giga factory: Magnis Resources Ltd (ASX: MNS) has announced that Queensland Premier Annastacia Palaszczuk has publicly expressed support for Townsville Lithium-ion battery Giga factory project following the submission of a scoping study, that demonstrates the project’s positive economic impact. The consortium (that includes MNS) also continues to receive strong support and assistance from local government and State Members of Parliament. Considerable progress is being made in funding discussions with relevant State and Federal government bodies, along with private enterprise including local and overseas groups within the energy sector. As part of the funding discussion process, land valuation work has been completed on the 400-hectare site in Woodstock, Queensland that has been selected as the location for the Townsville Giga factory. In parallel, strong progress is being made on the technical development of the project, including qualification of manufacturing input materials and budget pricing. Further, engagement with major equipment vendors is ongoing and budget costs received to date have been consistent with scoping study estimates. Pilot testing of manufacturing processes and production of prototype battery products for potential customers has begun. However, this work is part of a process package that is being developed for the next phase of the feasibility study.

To read the complete report CLICK HERE. To get your free report CLICK HERE

For FY17, Sandfire Resources NL Boost from commodity price

Boost from commodity price: For FY17, Sandfire Resources NL (ASX: SFR) reported a 62% increase in net profit after tax at $77.5 million (FY16: $48.0 million). As a result, SFR stock moved up 3.5% on August 30, 2017. Strong sales and positive copper price adjustment gains resulted in sales revenue of $532.5 million (FY16: $485.8 million), and payable metal sales totalled 62,663 tonnes of payable copper and 34,333 ounces of payable gold (65,832 tonnes of payable copper and 33,302 ounces of payable gold for FY16). The robust financial result was supported by consistent operational performance, lower costs and a significantly improved copper price, which together allowed the company to retire all its debt and almost double its year-end cash position to $126.7 million. The result equates to earnings per share of 49.16c (FY16: 30.54c). The DeGrussa Copper-Gold Mine posted another strong production performance for FY2017 with copper production of 67,088 tonnes and gold production of 38,623 ounces, at a reduced C1 cash operating cost of US$0.93/lb.   

To read the complete report CLICK HERE. To get your free report CLICK HERE

Syrah Resources Ltd Mining agreement approved by government of Mozambique

Mining agreement approved by government of Mozambique: Syrah Resources Ltd (ASX: SYR), up over 9% on August 30, 2017, announced that its wholly owned subsidiary, Twigg Exploration and Mining, Limitada (Twigg), holder of the Balama Project, has finalised the negotiation of a Mining Agreement with the Ministry of Mineral Resources and Energy of the Republic of Mozambique. Accordingly, it was approved by the Government of the Republic of Mozambique on 29 August 2017. The Mining Agreement consolidates all prior project documents and approvals. Further, it also provides the Company with clarity around the governing laws and contractualises the mining rights and other obligations for the Balama Project in Mozambique. In accordance with ordinary administrative procedures, the main legal terms of the Mining Agreement will now be gazetted and the Agreement signed by Twigg and the Minister of Mineral Resources and Energy (on behalf of Government of the Republic of Mozambique) in the coming weeks. It will then be presented to the Administrative Court in Mozambique for sanctioning after which it will be binding and enforceable. The Company will announce the key commercial terms of the Mining Agreement once the agreement is signed and becomes binding and enforceable.

To read the complete report CLICK HERE. To get your free report CLICK HERE

3 Mining stocks – Syrah Resources, Sandfire Resources NL and Magnis Resources

Mining agreement approved by government of Mozambique: Syrah Resources Ltd (ASX: SYR), up over 9% on August 30, 2017, announced that its wholly owned subsidiary, Twigg Exploration and Mining, Limitada (Twigg), holder of the Balama Project, has finalised the negotiation of a Mining Agreement with the Ministry of Mineral Resources and Energy of the Republic of Mozambique. Accordingly, it was approved by the Government of the Republic of Mozambique on 29 August 2017. The Mining Agreement consolidates all prior project documents and approvals. Further, it also provides the Company with clarity around the governing laws and contractualises the mining rights and other obligations for the Balama Project in Mozambique. In accordance with ordinary administrative procedures, the main legal terms of the Mining Agreement will now be gazetted and the Agreement signed by Twigg and the Minister of Mineral Resources and Energy (on behalf of Government of the Republic of Mozambique) in the coming weeks. It will then be presented to the Administrative Court in Mozambique for sanctioning after which it will be binding and enforceable. The Company will announce the key commercial terms of the Mining Agreement once the agreement is signed and becomes binding and enforceable.

To read the complete report CLICK HERE. To get your free report CLICK HERE

Boral’s stock plunged 2.9% on August 30, 2017.

Boral’s stock plunged 2.9% on August 30, 2017. For FY17, the group has reported a 28% increase in underlying profit after tax before significant items to $343 million at the back of strong performance, with all three divisions (Boral Australia, USG Boral and Boral North America) contributing to the improvement. Further, lower net interest expense year-on-year helped boosting the profit. Earnings before interest and tax (EBIT) before significant items also jumped up 16% to $460 million. There was a 2% rise in sales revenue of $4.4 billion over FY16. This included eight weeks of revenue from the Headwaters acquisition and growth in underlying business.  

To read the complete report CLICK HERE. To get your free report CLICK HERE