Investors ready to turn savage

Original article by Melissa Yeo
The Australian – Page: 21 : 15-Jan-20

The sharemarket rally has seen the S&P/ASX 200’s price-to-earnings multiple rise to a record high of 18 times. Mirrabooka Investments’ MD Mark Freeman says high valuations means that stocks which fail to meet expectations in the February reporting season will be punished by investors. Meanwhile, Mirrabooka has reported a 2019-20 interim profit of $4.4m, compared with $4.6m previously. Shareholders will receive a first-half dividend of $0.35 per share.

CORPORATES
MIRRABOOKA INVESTMENTS LIMITED – ASX MIR, STANDARD AND POOR’S ASX 200 INDEX

Coopers breached covenants, but it’s only small beer

Original article by Eli Greenblat
The Australian – Page: 13 & 14 : 23-Dec-19

Coopers Brewery’s 2019 financial report shows that shareholders received a total of $13.789m in dividend payments during the last year. Coopers has also disclosed that its banking covenants were breached in June, although the brewer obtained a waiver from its lender. Meanwhile, Coopers’ net profit fell by 31 per cent in 2019, to $16.4m. Coopers is the largest Australian-owned brewer, and the Coopers family comprises the bulk of its shareholders.

CORPORATES
COOPERS BREWERY LIMITED, CARLTON AND UNITED BREWERIES, ASAHI BREWERIES LIMITED, ANHEUSER-BUSCH INBEV SA/NV, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION, LION PTY LTD

Scale of Qantas turnaround catches Joyce by surprise

Original article by Steve Creedy
The Australian – Page: 20 : 10-Dec-14

Alan Joyce, CEO of Qantas Airways, admits that he and his management team had not expected their cost-cutting strategy to bear fruit so rapidly. He has been able to forecast a 2014-15 interim underlying profit pre-tax of up to $A350m, after the previous loss. The carrier’s stock on 9 December closed $A0.01 lower at $A2.38, but had gained nearly 14% the day before when the news was released. Meanwhile independent senator Nick Xenophon wants the Australian Competition & Consumer Commission to look into whether Qantas’s refusal to lower its fuel surcharge despite a falling crude oil price constitutes misleading and deceptive conduct

CORPORATES
QANTAS AIRWAYS LIMITED – ASX QAN, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION, BOEING COMPANY, CITIGROUP PTY LTD, AIRBUS SAS, NICK XENOPHON GROUP

Riches keep rolling in for Rinehart

Original article by John Stensholt
The Australian – Page: 22 : 12-Nov-19

Hancock Prospecting posted a net profit of $2.6bn in 2018-19, compared with just $443m in 2016, while its revenue increased from $1.6bn to $8.4bn over the same period. Hancock, which is controlled by mining magnate Gina Rinehart, benefited from a sustained rally in the iron ore price in 2018-19. The Roy Hill iron ore project was a major contributor to Hancock’s earnings for the financial year, with a profit of $1.38bn and revenue of $5.16bn. Rinehart’s wealth was estimated at $13.12bn in March.

CORPORATES
HANCOCK PROSPECTING PTY LTD, ROY HILL HOLDINGS PTY LTD

More Westpac pain ahead as dividends cut

Original article by Joyce Moullakis
The Australian – Page: 17 & 21 : 5-Nov-19

Westpac has posted cash earnings of $6.85bn for 2018-19, which is 15 per cent lower than previously. Its net interest margin fell 10 basis points to 2.12 per cent in the year to 30 September, while the final dividend has been reduced from $0.94 per share to $0.80. Westpac has also advised that its customer remediation costs have totalled $1.9bn pre-tax since 2017, and CEO Brian Hartzer has warned of the potential for further compensation and litigation. Meanwhile, a $2.5bn capital raising will lift Westpac’s common equity tier one capital ratio to around 11.25 per cent.

CORPORATES
WESTPAC BANKING CORPORATION – ASX WBC, AUSTRALIA. ATTORNEY-GENERAL’S DEPT. AUSTRALIAN TRANSACTION REPORTS AND ANALYSIS CENTRE, MARTIN CURRIE INVESTMENT MANAGEMENT LIMITED, UBS HOLDINGS PTY LTD

ANZ warns of tough going as profit falls

Original article by Richard Gluyas
The Australian – Page: 17 & 21 : 1-Nov-19

The ANZ Bank’s 2018-19 cash profit was steady at $6.47bn, although its net profit fell seven per cent to $5.95bn. ANZ has warned that trading conditions are likely to remain ‘challenging’ for some time, with CEO Shayne Elliott noting that consumers are opting to save rather than spend their money in the low interest rate environment. He has also rejected suggestions that banks are ‘profiteering’, arguing that ANZ’s return on equity of 10.9 per cent is not unreasonable. ANZ’s final dividend of $0.80 per share will be franked to 70 per cent.

CORPORATES
AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, WESTPAC BANKING CORPORATION – ASX WBC, RESERVE BANK OF AUSTRALIA, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET

Billion dollar hit for NAB after ASIC action

Original article by James Fernyhough
The Australian Financial Review – Page: 15 & 18 : 3-Oct-19

National Australia Bank has advised that its cash earnings for the second half of 2018-19 will fall by about $1.23bn, while its full-year net profit will fall by $1.18bn. This has been attributed to an additional after-tax charge of $832m for its customer remediation program, as well as a change to its software capitalisation policy. NAB’s total provisions for customer remediation in the wake of the fees-for-no-service scandal has now topped $2bn. NAB will release its full-year results on 7 November.

CORPORATES
NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, AUSTRALIA. ROYAL COMMISSION INTO MISCONDUCT IN THE BANKING, SUPERANNUATION AND FINANCIAL SERVICES INDUSTRY, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, MOODY’S INVESTORS SERVICE INCORPORATED, S&P GLOBAL RATINGS

Woolies thrives but Banducci stays cautious

Original article by Eli Greenblat
The Australian – Page: 17 & 20 : 30-Aug-19

Groceries and liquor giant Woolworths Group has posted a 2018-19 net profit of $2.693bn, which is 56.1 per cent higher than previously. Its profit from continuing operations was down per cent at $1.49bn following the sale of its petrol division, but group sales rose 5.3 per cent to $59.98bn. Woolworths’ core Australian supermarkets division recorded earnings and sales growth of 5.7 per cent and 5.3 per cent respectively. Big W’s sales were 6.5 per cent higher, although the discount department store chain posted an EBIT loss of $85m.

CORPORATES
WOOLWORTHS GROUP LIMITED – ASX WOW, BIG W DISCOUNT STORES, ENDEAVOUR DRINKS, DAN MURPHY’S, COLES GROUP LIMITED – ASX COL

Competition no worry for Lynas

Original article by Nick Evans
The Australian – Page: 20 : 30-Aug-19

Rare earths miner Lynas Corporation has posted a 2018-19 net profit of $80m, compared with $53.1m previously. However, EBITDA fell to $100.7m and revenue was also lower at $363.5m. Meanwhile, CEO Amanda Lacaze is not unduly concerned by the mining sector’s growing interest in rare earths, arguing that increased competition could benefit Lynas. She is also optimistic that the Malaysian Government will renew the company’s full operating licence after agreeing to extend its current licence by six months.

CORPORATES
LYNAS CORPORATION LIMITED – ASX LYC, NORTHERN MINERALS LIMITED – ASX NTU, ILUKA RESOURCES LIMITED – ASX ILU

Nickel group eyes better off-take deals

Original article by Brad Thompson
The Australian Financial Review – Page: 29 : 30-Aug-19

Independence Group has posted a 2018-19 net profit of $76.1m, which is 44 per cent higher than previously. The nickel and gold producer’s revenue rose by two per cent to $792.9m, while shareholders will receive a final dividend of $0.08 per share. Independence Group has allocated $66m for exploration in 2019-20, with the aim of extending the mine life of its Nova nickel project and finding new deposits in Western Australia’s Fraser Range.

CORPORATES
INDEPENDENCE GROUP NL – ASX IGO, GLENCORE PLC, NICKEL WEST, BHP GROUP LIMITED – ASX BHP, ANGLOGOLD ASHANTI LIMITED – ASX AGG, RBC CAPITAL MARKETS