K64 Auxiliary Finance and Insurance Services

Profits headed for record

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Original article by Alex Gluyas
The Australian Financial Review – Page: 1 & 27 : 1-Feb-22

Analysts are upbeat about the earnings outlook for listed companies in the February reporting season, despite headwinds such as the coronavirus-induced supply chain disruptions. The consensus of analysts is that S&P/ASX 200 companies’ growth in earnings per share will exceed pre-pandemic levels. However, Karen Jorritsma of RBC Capital Markets says it will be a "very messy" reporting season, due to factors such as rising costs. Ansell has become the latest company to downgrade its earnings per share guidance in response to cost pressures.

CORPORATES
STANDARD AND POOR’S ASX 200 INDEXRBC CAPITAL MARKETSANSELL LIMITED – ASX ANN

Hostile bids abound in era of uncertainty

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Original article by Richard Gluyas
The Australian – Page: 15 : 23-Nov-21

Data from law firm Minter Ellison shows that there have been eight hostile takeover bids in Australia so far in 2021, following nine such bids in 2020. This compares with just five in 2019, prior to the COVID-19 pandemic. Minter Ellison notes that the target’s board did not commission an independent expert’s report in 15 of the last 20 hostile takeover bids. Alberto Colla of Minter Ellison says bidders usually prefer to pursue a friendly takeover bid that has the support and recommendation of the target’s board.

CORPORATES
MINTER ELLISON

ASX carrying $200b of zero-profit market cap

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Original article by Vesna Poljak
The Australian Financial Review – Page: 29 : 23-Nov-21

Research by MST Marquee shows that 48 companies in the S&P/ASX 300 currently do not make a profit. This compares with an average of 37 over the last two decades. The 48 unprofitable companies have a combined market capitalisation of about $200bn. Hasan Tevfik of MST suggests that central banks are a major cause of the rise in profitless companies, with ultra-low interest rates prompting an increase in speculative investment.

CORPORATES
MST MARQUEE, STANDARD AND POOR’S ASX 300 INDEX

Final tranche of Hayne reforms a milestone

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Original article by James Frost
The Australian Financial Review – Page: 18 : 28-Oct-21

The federal government will legislate to implement a further six recommendations arising from the Hayne royal commission on 28 October. The last tranche of legislation includes a bill to replace the Banking Executive Accountability Regime with the broader-based Financial Accountability Regime, which will also apply to the insurance and superannuation sectors. The government will also establish the Compensation Scheme of Last Resort, which will eventually be fully funded via an industry level. Kenneth Hayne released his final report in February 2019.

CORPORATES
AUSTRALIA. ROYAL COMMISSION INTO MISCONDUCT IN THE BANKING, SUPERANNUATION AND FINANCIAL SERVICES INDUSTRY

Australian firms line up to launch inevitable local Bitcoin ETFs

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Original article by Dominic Powell
Brisbane Times – Page: Online : 27-Oct-21

The lack of a custody regime for cryptocurrencies prevents the launch of Bitcoin exchange-traded funds in Australia at present, although changes to the regulatory regime are expected in 2022. Betashares CEO Alex Vynokur says it is inevitable that a local Bitcoin ETF will be launched in Australia, adding that his firm would be interested in entering this market. Holon MD Heath Behncke says his firm would also be keen to launch a Bitcoin ETF. The world’s first listed Bitcoin ETF has performed well following its recent debut in the US.

CORPORATES
BETASHARES CAPITAL LIMITED, HOLON GLOBAL INVESTMENTS LIMITED

Fund managers swamped as IPO hopefuls line up

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Original article by William McInnes
The Australian Financial Review – Page: 29 : 27-Oct-21

Judo Bank and SiteMinder are among the companies with a market capitalisation of more than $1bn that will debut on the Australian sharemarket in coming weeks. Martin Hickson of 1851 Capital notes that at least seven companies with a market value of $1bn-plus are pursuing IPOs in the December quarter. Asset manager GQG Partners made its sharemarket debut on 26 October after raising $1.3bn in an IPO; the stock shed 2.5 per cent to close at $1.95, giving it a market capitalisation of $5.8bn.

CORPORATES
JUDO BANK PTY LTD, JUDO CAPITAL HOLDINGS LIMITED – ASX JDO, SITEMINDER LIMITED – ASX SDR, GQG PARTNERS INCORPORATED – ASX GQG, 1851 CAPITAL PTY LTD

M&A to smash records

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Original article by Kanika Sood, Anthony Macdonald, Yolanda Redrup
The Australian Financial Review – Page: 1 & 20 : 19-Oct-21

Data from Refinitiv shows that $US350bn ($495bn) worth of takeover bids in Australia and New Zealand have been announced so far in 2021. This is three times the long-term average, and Takeovers Panel president Alex Cartel describes it as the hottest mergers and acquisitions environment in decades. Deal-making activity is being driven by factors such as the large amounts of cash on many companies’ balance sheets in the wake of the pandemic and the prospect of interest rates remaining low for some time. Almost $10bn worth of takeover bids involving Australian-listed were announced on 18 October.

CORPORATES
REFINITIV AUSTRALIA PTY LTD, AUSTRALIA. TAKEOVERS PANEL

Lockdowns and supply chain squeeze to lead to earnings reset

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Original article by Richard Henderson
The Australian Financial Review – Page: 29 : 13-Oct-21

Many Australian-listed companies withheld earnings guidance during the August reporting season, citing factors such as uncertainty arising from the COVID-19 pandemic. Investors will be hoping for greater clarity during the annual general meetings season, but Chris Nicol of Morgan Stanley says they are likely to be disappointed. He cautions that factors such as lockdowns and supply chain problems can be expected to weigh on earnings in the first half of 2021-22.

CORPORATES
MORGAN STANLEY AUSTRALIA LIMITED

Investors pump billions into new companies as listings soar

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Original article by Richard Henderson
The Australian Financial Review – Page: 28 : 12-Oct-21

Data from Refinitiv shows that 121 companies have listed on the Australian sharemarket so far in 2021, compared with just 84 new listings in 2020. It is the highest level of listing activity since 2007, when 136 companies debuted on the local bourse. Some $6.7bn has been raised via IPOs during 2021, while the proposed floats of Judo Bank and GQG Partners would boost this by around $2bn. IPO activity was subdued earlier in the year, following the fallout from the ill-fated float of Nuix in late 2020.

CORPORATES
REFINITIV AUSTRALIA PTY LTD, JUDO BANK PTY LTD, GQG PARTNERS INCORPORATED – ASX GQG, NUIX LIMITED – ASX NXL

Aussie BNPL usage the best in the West

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Original article by Lachlan Moffet Gray
The Australian – Page: 19 : 17-Sep-21

Sixty per cent of Australians have used a buy now pay later (BNPL) platform, compared to 47 per cent of US or UK respondents. This is according to a survey by card issuing and payment solutions company Marqeta, with a third of survey respondents stating that they had started using BNPL platforms within the last 18 months. Marqeta country manager for Australia and New Zealand Duncan Currie says the high adoption of BNPL in Australia could in part be due to it being the home country of leading BNPL companies Zip and Afterpay.

CORPORATES
MARQETA, ZIP CO LIMITED – ASX Z1P, AFTERPAY LIMITED – ASX APT