Yovich & Co. Market Update - 25 June 2018

Jun 25, 2018 | Commentary

Moa Group Limited’s loss for March year end was $2.55m compared with $2.32m last year.

Cavalier Corporation Limited is forecasting an uplift in profit for 30 June 2018 year.  Net profit after tax is expected to be in range of $3.7m to $4m, whereas 2017 net loss was $1.8m.

Barramundi Limited net asset backing as at 20 June 2018 is 70.93 cents per share.

Gentrack Group Limited has entered into an unconditional agreement to acquire Evolve Parent Limited and Evolve Analytics Limited, a market leading provider of energy data analysis software and services provider in the UK for an enterprise value of £23m (NZD $44.2m).

Synlait Milk Limited is going to develop its second nutritional powder manufacturing factory at Pokeno, Waikato.  The initial capital investment is $250m and it will be commissioned for the 2019/20 season as it aims to keep up with growing demand from infant formula product.

Sheffield Resources and the Walalakoo Aboriginal Corporation have successfully negotiated a co-existence agreement over miscellaneous licences that secure road access to the Thunderbird Mineral Sands Project. 

Sheffield has secured a maiden binding agreement for the future sale of low temperature roast ilmenite from its Thunderbird Project.  The agreement has been signed with Bengbu Zhongheng New Materials S & T Co. Ltd (Bengbu) and is based on a 5 year minimum annual supply of 150,000 tonnes of LTR Ilmenite.  Bengbu is a globally significant technologically advanced company research, development and production company and is a market leader in the mineral sands industry.  It is the world’s largest producer of fused zirconia, supplying leading edge state-of-the-art products globally and has targeted chloride pigment production for future growth within the industry.  Ilmenite price range is $200 to $220 per tonne.  Sheffield expects its ilmenite to be in the $220 - $240 range because of its higher quality.

Kathmandu Holdings Limited expects its tax paid profit for year ended 31 July 2018 to be between $48m to $52m compared with $38m last year.  The second half has been strong.  The forecast has had a positive impact with share price increasing 35c.

New Zealand Refining Company Limited advises that latest estimate of shutdown costs to be in range of $25 - $30 million over the original $85m.  The impact on 2018 tax paid profit is expected to be an additional negative $10 million.

Precinct Properties New Zealand Limited has reported a revaluation gain of $202m on its property portfolio increasing the value at around $2.56.  Net asset backing for share increases from $1.23 to $1.41.


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Walter Yovich

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