JB Hi-Fi – FY20 Earnings

Posted on | by Leon Hinde

JB Hi-Fi is among the best-performing stocks within our ASX 100 model portfolio. The stock was added back on the 3rd of November 2017 after switching to Algo Engine buy conditions.

JB Hi-Fi delivered FY20 underlying NPAT of $332mn above the top end of the guidance range of $325 to $330 million.

The 2H20 dividend of $0.90 was above consensus. Overall, the result was ahead of expectations, however, near-term risks to discretionary spending are high.

Altium – FY20 Reviewed

Posted on | by Leon Hinde

Altium creates software to help people design circuit boards for electronic devices. Altium has aspirational targets of $US500 million in annual revenue and 100,000 subscribers by 2025.

FY20 EBITDA was better than consensus with FY20 revenue of $189m, + 10% on the same time last year, EBITDA $72m. The company generated record subscriber growth, surpassing its 50,000 subscriber goal.

Full-year unfranked dividend increased to $0.19 and earnings before interest and tax climbed 13% to $US64m for the year ended June 30.

A highlight for the company in the last 12 months was the launch of its cloud-based electronic design subscription platform Altium 365. For 2021, the company forecast revenue growth to be in the range of $200 – $212mn or an increase of 10%.

Lendlease – FY20 Review

Posted on | by Leon Hinde

Lendlease LLC reported FY20 NPAT of -$310m. The sale of the engineering business unit to Acciona is expected to complete soon with a sale of $160m, lower than the original $180m announced.

Lendlease is facing subdued trading conditions as the company navigates the effects of COVID-19, with development, investment, and construction income all down over 50% for the June period.

Despite short-term uncertainty, the long-term value remains attractive and the company’s strong balance sheet should provide it with resilience.

Ampol – REIT Spin-Off

Posted on | by Leon Hinde

Ampol has announced the separation of a REIT which will contain 203 freehold convenience retail sites, with Charter Hall and Singapore’s GIC acquiring a 49% stake for $682 million and Ampol retaining 51%.

The transaction values the property trust at $1.4 billion.

Ampol will receive net proceeds of $612 million and use them to pay down debt.

CSL – Buy

Posted on | by Leon Hinde

CSL is under Algo Engine buy conditions and remains one of the best-performing stocks in our ASX model portfolios.

The technical indicators show the recent higher low formation with support at $270.