• HOME
  • INVESTMENTS
    • Equities >
      • Australia All Cap
      • Australia Small Cap Income
      • Global Mobility
      • Global High Conviction
    • Property >
      • Listed Property
      • TAMIM Property
    • Income >
      • Credit
  • INSIGHTS
    • Insights
    • Weekly Reading Lists
  • ABOUT
  • CONTACT
Tamim Asset Management
  • HOME
  • INVESTMENTS
    • Equities >
      • Australia All Cap
      • Australia Small Cap Income
      • Global Mobility
      • Global High Conviction
    • Property >
      • Listed Property
      • TAMIM Property
    • Income >
      • Credit
  • INSIGHTS
    • Insights
    • Weekly Reading Lists
  • ABOUT
  • CONTACT

Stock Insights

February 2019 Reporting Season Highlights (Part 1)

21/2/2019

0 Comments

 
In the midst of reporting season we have already seen and met dozens of companies that have reported their interim or full year reports. In this week’s newsletter we bring to you  some of the standout results for the TAMIM All Cap Portfolios.
Picture
Altium (ALU.ASX), the leading global electronic design software company, delivered what can be categorised as the standout result so far. Revenues up 24% to USD78.5M with continued EBITDA margin expansion to 36% which led to NPAT growing 58% to USD23.4M. Its parts catalogue software, Octopart, is gaining strong traction growing 80% and subscription sales in China have accelerated over 50%. The opportunity in China is massive, with a reported 100k install base of Altium Designer users that are currently not subscribed. Post results, the stock rose 20% and is now valued at over $4B. 

What has excited investors the most is management highlighting a new strategic target of USD500M revenues and over 40% margins by 2025. This could see the company possibly earn AUD250M NPAT by then, which on industry multiples could see the business worth over $7.5B or $60 per share. So far management has exceeded all expectations it has set out for itself. ALU is in the TAMIM All Cap Portfolios.

CIM.ASX Logo
CIMIC Group (CIM.ASX), the largest engineering contracting business in the country, delivered its 5th consecutive year of realising the top end of guidance at $781M NPAT. Cash flow conversion of 110% was a standout and the balance sheet ended CY2018 with net cash of $1.6B. Management indicated that there is $37B of outstanding order book and significant industry tailwinds in the infrastructure and resources sectors. We consider CIM a best of breed contractor and value the stock at over $52. We own CIM in TAMIM All Cap Portfolios.

CCX.ASX Logo
CityChic (CCX.ASX), the leading Australian retailer for plus size women with an estimated 10% market share of a billion dollar market, reported an impressive set of half year numbers. Sales were up 7% to $76M, with comparative sales up 10%, EBITDA up 22% to $16M and an impressive margin of 21%. NPAT came in at $10M or 5 cents EPS with a maiden dividend declared of 5 cents. We estimate FY19 EPS of 8 cents. 

What’s more impressive is that the group’s rapidly growing online sales currently make up 40% of total revenue. This is best of class globally. Management has flagged a thirty store roll-out opportunity and a further twenty stores to be upgraded to a larger format. In the US, the company is continuing to develop its brand awareness and drive customers directly to its website. The balance sheet has over $30M in net cash and we value the stock at over $1.50. CCX is a holding in the TAMIM All Cap Portfolios.

CUP.ASX Logo
​CountPlus (CUP.ASX), an accounting and financial advice national network of 18 firms and growing, continued its 2 year turnaround progress with pleasing results. EBITA came in at $4.7M of which 78% converted to free cash flows. NPATA result was for the first time clean with no adjustments, at $3.44M. Partner firms EBIT margin, a key metric to watch out for, improved to 18% from 15% last year and 12% when the turnaround strategy was announced. 

Well managed accounting firms can earn up to 25% margins. Balance sheet ended the period with over $10M of net cash and a 1 cent dividend was declared. In addition, another financial advice firm acquisition was announced and further more deals flagged. We estimate the company will earn $6M NPATA this year which places it on an undemanding PE of 9.5x excluding net cash. We value CUP at 90 cents and is a core holding in the TAMIM All Cap Portfolios.

CML Logo
CML Group (CGR.ASX) delivered strong growth in 1H19 with finance revenues up 26% on 46% growth in invoices purchased and financed to $838M. Along with the reduction in its cost of funding reducing from 9.3% to 6.1%, this led to EBITDA growth of 22% and more importantly NPATA growth of 72% to $4.4M or 2.2 cents. Management has guided to full year EBITDA and NPATA to exceed $21M and $9M respectively.

In addition, the company has invested $400k in their new invoice discounting products in the first half. This should turn profitable in 2H and quadruples CGR's addressable market as it can now target larger clientele.

We estimate CGR will earn $9.5M NPATA and 4.7 cents EPS this year. This should grow by a further 20% next year. We value CGR at 72 cents and it is a core holding in TAMIM All Cap Portfolios.

0 Comments

Your comment will be posted after it is approved.


Leave a Reply.

    Stock Commentary

    At TAMIM we are committed to educating investors on how best to manage their retirement futures.

    Sign up to receive our weekly newsletter:

    * indicates required

    TAMIM Asset Management provides general information to help you understand our investment approach. Any financial information we provide is not advice, has not considered your personal circumstances and may not be suitable for you.

    Archives

    June 2022
    May 2022
    April 2022
    March 2022
    February 2022
    December 2021
    November 2021
    October 2021
    September 2021
    August 2021
    July 2021
    June 2021
    May 2021
    April 2021
    March 2021
    February 2021
    January 2021
    December 2020
    November 2020
    October 2020
    September 2020
    August 2020
    July 2020
    June 2020
    May 2020
    April 2020
    March 2020
    February 2020
    January 2020
    December 2019
    November 2019
    October 2019
    September 2019
    August 2019
    July 2019
    June 2019
    May 2019
    April 2019
    March 2019
    February 2019
    January 2019
    December 2018
    November 2018
    October 2018
    August 2018
    July 2018
    June 2018
    May 2018
    April 2018
    March 2018
    February 2018
    January 2018
    December 2017
    November 2017
    October 2017
    September 2017
    August 2017
    July 2017
    June 2017
    May 2017
    March 2017
    February 2017
    January 2017
    December 2016
    November 2016
    October 2016
    September 2016
    August 2016
    July 2016
    June 2016
    May 2016
    April 2016
    March 2016
    February 2016
    December 2015

    Categories

    All
    2016 Presidential Election
    5G
    AGM Season
    Apple (AAPL.NASDAQ)
    Asia Small Companies
    ASX
    ATL.AX
    Aus Equity All Cap Portfolio
    Aus Equity All Cap Value Portfolio
    Aus Equity Growth Portfolio
    Aus Equity Income Portfolio
    Aus Equity Small Cap Portfolio
    Australian Stocks
    Autonomous Vehicles
    Big Four Banks
    Brexit
    Electric Vehicles
    Emerging Markets
    Energy
    ENN.AX
    FAANG
    Financials
    Fintech
    Global Equity High Conviction Portfolio
    Global Mobility
    Gmg.ax
    Gold
    Growth Stocks
    Guy Carson
    Healthcare
    Income Investing
    Infrastructure
    International Stocks
    Investment Thematics
    IT Services
    Mergers & Acquisitions
    Mobility
    Pharma
    Property
    Rare Earths
    REITs
    Reporting Season
    Retail
    Robert Swift
    Ron Shamgar
    SLK.AX
    Small Cap Income Portfolio
    Small Caps
    Stock Report
    Takeovers
    Technology
    Telco Stocks
    Telstra (TLS.ASX)
    Tourism
    TPG
    Utilities
    Value Investing
    Video
    Wesfarmers (WES.ASX)

    RSS Feed

TAMIM | Equities | Property | Credit
​

TAMIM Fund
Australia All Cap
Australia Small Cap Income
Global Mobility
Global High Conviction
Credit

Listed Property
TAMIM Property
Company
About
Contact
Insights
Invest Online
Login
Other
Privacy Policy
Terms & 
Conditions
​Disclaimer
Contact
Level 4, 55 Grafton Street
Bondi Junction, Sydney NSW, 2022

1300 750 007

ima@tamim.com.au

DISCLAIMER

​The information provided on this website should not be considered financial or investment advice and is general information intended only for wholesale clients ( as defined in the Corporations Act). If you are not a wholesale client, you should exit the website. The content has been prepared without taking into account your personal objectives, financial situations or needs. You should seek personal financial advice before making any financial or investment decisions. Where the website refers to a particular financial product, you should obtain a copy of the relevant product services guide or offer document for wholesale investors before making any decision in relation to the product. Investment returns are not guaranteed as all investments carry some risk. The value of an investment may rise or fall with the changes in the market. Past performance is no guarantee of future performance. This statement relates to any claims made regarding past performance of any Tamim (or associated companies) products. Tamim does not guarantee the accuracy of any information in this website, including information provided by third parties. Information can change without notice and Tamim will endeavour to update this website as soon as practicable after changes. Tamim Funds Management Pty Limited and CTSP Funds Management Pty Ltd trading as Tamim Asset Management and its related entities do not accept responsibility for any inaccuracy or any actions taken in reliance upon this advice. All information provided on this website is correct at the time of writing and is subject to change due to changes in legislation. Please contact Tamim if you wish to confirm the currency of any information on the website.  

magellen, kosec, clime, wilson, wam, montgomery, platinum, commsec, caledonia, pengana, tamim

  • HOME
  • INVESTMENTS
    • Equities >
      • Australia All Cap
      • Australia Small Cap Income
      • Global Mobility
      • Global High Conviction
    • Property >
      • Listed Property
      • TAMIM Property
    • Income >
      • Credit
  • INSIGHTS
    • Insights
    • Weekly Reading Lists
  • ABOUT
  • CONTACT