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.

Technology One – Buy Signal

Posted on | by Leon Hinde

Technology One now comes onto our radar following yesterday’s Algo Engine buy signal.

Technology One is one of Australia’s largest enterprise software services companies.

Key results were as follows for 1H 20 earnings
 Profit after tax of $19.1m, up 6%
 Profit before tax of $25.9m, up 6%
 Revenue of $138.4m1, up 7%
 Expenses of $112.5m, up 7%
 SaaS Annual Recurring Revenue (ARR)2 of $110.2m, up 33%
 Cash Flow Generation of $9.9m, up 100+%
 Cash and Cash Equivalents of $84m, up 23%
 Dividend of 3.47cps, up 10%

We’ll review the full-year earnings in the coming weeks when they release their June numbers.

Telstra – FY21 Guidance

Posted on | by Leon Hinde

The outlook into FY21 was somewhat disappointing, with the company
guiding to underlying EBITDA of A$6.5-7.0bn, down from 7bn in FY20.

FY23 forecast for EBITDA targeted by Telstra management is A$7.5-8.5bn, this will be required in order to support the $0.16 per share dividend payout.

We continue to see TLS within a band of $3.10 support and $3.50 resistance.

Ramsay Health Care – Rallies 10%

Posted on | by Leon Hinde

Ramsay Health Care is faced with flat earnings in 2020 and only moderate growth FY21. For patient long-term investors, there’s an income opportunity with defensive low levels of growth.

We see buying support increasing near the $60 level.

The above post is from early August when RHC was trading in the $60 – $62 price range. The stock is now approaching $70 and short-term traders can consider taking profit between $68 – $70.