Yovich & Co. Market Update - 31 July 2019

Aug 1, 2019 | Commentary

Market News



In summary, the NZX50 had 20 companies on the downside, 27 companies were on the upside and 4 unchanged. Last week saw the NZD/AUD unchanged, while the NZD/USD decreased 1.88%, this is good news for companies exporting products to the USA.


Investment News

New Zealand Equities


Tax paid profit for the year ending 31 March 2019 is up 11.5% at $227m, full year dividend increased to 22.7 cents from 20.4 cents the previous year. Operating cash flow is up 15% to $401m. This year is Ryman’s 20th year as a listed company. It has come from humble beginnings with a market cap of $135m in 1999 to well over $6b in 2019. Current share price: $12.90, gross yield: 1.76%.

Metro Performance Glass

Tax paid profit for the year ending 31 March 2019 is at $14.2m, an EBIT of $25m in line with March guidance. The guidance for the FY2020 is expected to be $25-$27m. This year Metro Glass reduced debt by $11m to $83m, and expects next year debt reduction of $15m. Current share price: $0.375, 12 month target price: $0.62.


Announced that it is considering the potential for a sale and leaseback on some or all of its orchard portfolio in Australia. This strategy will provide funds to both accelerate kiwifruit orchard development and to repay debt. Seeka has approximately NZD$49m invested in Australia across both the post-harvest and orchard business’s. Current share price: $5.19, gross yield: 6.47%.

Sky Network Television

Announced that it is introducing a new Sky Sport News channel, a super charge sport offering with 12 sport channels and a Sky sports streaming app. These are part of Sky’s strategic plans to rein in its customers. Since Spark announced that it will be streaming the Rugby World Cup, Sky’s share price has trended downwards to a low of $1.16. These new offerings demonstrate that Sky is not out of the game. Current share price: $1.28, gross yield: 16.28.

Green Cross Health

Tax paid profit for the year ending 31 March 2019 was up 3.2% at $16.1m, and revenue up 5.6% at $567.2m. Net debt has reduced by 15% to $32.5m from $38.4m. Green Cross has three main operations: Pharmacy, Medical and Community. Medical operating profit up 20.4% outperforming the rest. Consistent gross dividends of 9.72 cents provide investors with a stable income. Current share price: $1.16, gross yield: 8.38%, 12 month target price: $2.20.

Gentrack Group

Expects its 2019 EBITDA to be within range of $27m and $28m a decrease from previous guidance of $31m.

Oceania Healthcare

Tax paid profit for the year ending 31 May 2019 is down 1.8% at $49.7m compared to $50.6m the previous year.



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Nathanael McDonald

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Weekly Update Investment Shares Bonds Investment Strategy Investment Advice Share Advice Share Investment Investing in Shares Seeka SEK.nz Gentrack Group GTK.nz Oceania Healthcare OCA.nz Green Cross Health GXH.nz SKY Network Television SKT.nz Metro Performance Glass MPG.nz Ryman Healthcare Ltd RYM.nz


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