Tag: Australian Market
Cash Flow TTM is 16.72%. Regal Investment Fund is a Closed Ended Fund Type. Its dividend in July 2021 is 1.0111%. In June 2021, their revenue was AUD$ 262.81 Million and Net Profit is 174.87 Million.
Price Earnings TTM is 2.4% while Earnings per Share is 1.637. Their Year-to date Return is 34.17% and Premium/Discount percent is almost 1.03%. Regal Investment Fund Dividend Indicated Gross Yield is 25.78%.
On 6 October 2021, RF1 announced it was conducting a Placement and Accelerated Entitlement Offer to institutional and wholesale investors and a General Entitlement Offer to eligible unit holders. Combined the Fund was seeking to raise up to $212m.
RF1 successfully completed the Placement and Entitlement Offers during the month, raising $212m. All units issued under the Placement and Entitlement Offers were issued at a price of $3.79 per unit, representing the NAV of the Fund at 1 October 2021 and a substantial discount to the unit price at the time the capital raising was announced.
Capital raised under the Offer will be allocated to existing strategies in line with the Fund’s investment objective with the aim of further diversifying RF1’s portfolio across both private and public alternative investments. The Manager is covering all fees and expenses associated with the Offer.
Asset Allocation
| Asset Class | Net Allocation |
Australian EquitiesInternational EquitiesCash & Cash EquivalentsOver the Counter DerivativesUnlisted Unit Trusts | 52.8%7.7%25.2%0.6%13.7% |
Company Profile
Regal Investment Fund is a listed investment trust incorporated in Australia. The Fund’s Investment Objective is to provide investors with exposure to a selection of alternative investment strategies managed by Regal, with the aim of producing attractive risk adjusted absolute returns over a period of more than five years with limited correlation to equity markets.
(Source: Bloomberg)
General Advice Warning
Any advice/ information provided is general in nature only and does not take into account the personal financial situation, objectives or needs of any particular person.
Investment Thesis
- High barriers to entry with unique expertise and assets. 40-year heritage of leadership in science and innovation in ARS and women’s imaging, coupled with the depth of experience from the doctors and clinical team which will continue to underpin MVF’s future growth and maintain treatment success rates.
- Ageing Australian population and increased age of mothers (especially with the trend of more females choosing career over family until their early thirties) will provide favorable demographic tailwinds.
- Improving balance sheet with flexibility to execute expansion strategies. Earnings increasingly become diversified as the Malaysian business gains momentum.
- Potential earnings diversification and growth via international expansion and increased presence in diagnostics.
- Demonstrated capacity to perform well in terms of cost out and earnings growth despite tough conditions (i.e., lower cycle volumes).
- Transparent and detailed disclosures.
Key Risks
- Regulatory risk as changes in government funding may increase patient’s out-ofpocket expenses and thereby volume demand.
- Fluctuations in the availability and size of Medicare rebates may negatively influence the number of IVF cycles administered and overall industry revenue
- The Australian market does not rebound following this period of downturn. Population of males and females with fertility problems decline.
- Loss of key specialists.
- Loss of market share especially to low-cost providers, with one already appearing in Victoria.
- Weakening economic activity resulting in increased unemployment leading to less disposable income to be spent in IVF treatment.
- Execution of international forays into Malaysia goes poorly.
FY21 Result Highlights
- Revenue was up +26.3% to $183.6m underpinned by market share gains and strong industry volumes.
- Adjusted EBITDA was up +37.1% to $47.7m, with margin improving to 26% (from 23.9%) despite a +12% increase in marketing expenditure and patient communication digitisation activities and ~$1.7m of further costs for suspension of Ni-PGT genetic testing program.
- Adjusted NPAT of $23.3m, was up +61.5% and ahead of profit guidance ($21m-$23m). Reported NPAT of $25.5m was up +116.9%.
- MVF Australian FY21 Stimulated Cycles (STIMS) was up +36.6% driven by industry growth of 31.1% and 0.6% market share gains to 21.0%. Management pointed out “in Q1FY21, Monash IVF serviced the pent-up demand/deferred treatment created by the initial COVID-19 related temporary suspension of IVF services. Notwithstanding on-going and sporadic COVID-19 related lockdowns, IVF services have been largely undisrupted and as a result, growth continued throughout the year. Market Share gains were achieved in Victoria, New South Wales, Queensland and Northern Territory whilst the exceptionally high level of market share in South Australia was maintained above 60%. STIM industry growth of 31.1% supported the strong volume growth across the Group bringing the 5-year annual CAGR to 5.6%”.
- International STIMS was up +25.1% or 208 cycles.
- The positive diagnostics ultrasound performance was driven by obstetrics growth and a shift of activity from public to privately owned clinics. Ultrasound scan volumes were up +12.9% to 92,776 and Non-invasive Pre-natal testing were up +17.8% to 15,877.
- MVF appointed five experienced Fertility Specialists and a Medical Director of Genetics.
- MVF is opening its Sydney CBD flagship clinic and has earmarked further new clinics in the pipeline for FY22.
Company Profile
Monash IVF Group Ltd (MVF) offers assisted reproductive technology services, ultrasound services, gynecological services, in-vitro fertilization services, consultancy services and general clinical services to patients in Australia and Malaysia. MVF comprises 40 clinics and ultrasound practices and employs ~100 doctors and has a network of 650 associated health professionals.
(Source: BanyanTree)
General Advice Warning
Any advice/ information provided is general in nature only and does not take into account the personal financial situation, objectives or needs of any particular person.
Investment Thesis:
- Attractive way to play the Covid reopen trade for investors
- All segments delivering return on invested capital > weighted average cost of capital
- Strong position in the domestic market (Qantas Domestic and Jetstar continue to remain the two highest margin earning airlines in the domestic market)
- Jetstar is well positioned for growth and rising demand in Asia
- Partnership with Woolworths for Loyalty bodes well for membership and earnings
- Oil price hedging in FY20 could contribute to performance
- Increased competition in the international segment
- Relative to peers, strong balance sheet strength
- Investment grade credit rating
Key Risks:
- Disasters that could hurt the QAN brand
- Ongoing price led competition forcing QAN to cut prices affecting margins
- Leveraged to the price of oil
- Adverse currency movements result in less travel
- Labour strikes
- Depressed economic conditions leading to less discretionary income to spend on travel
Key highlights:
- QAN’s FY21 revenue declined 58% over pcp as the decline in international operations was partially offset by record performance by Qantas Freight, which combined with 49% fall in operating expenses and 71% decline in fuel expenses saw the Company deliver underlying EBIT loss of $1.5bn vs $395m profit in pcp
- Covid levels in 2H21 while state borders were open generated enough cash from $6.4bn in 3Q21, with management forecasting net debt to be in target range of $4.5- 5.6bn by end of FY22
- The Company’s cost-cutting program remained ahead of schedule, with $650m taken out of its cost base during FY21, remaining on track to deliver $850m by the end of FY22 and $1bn in FY23
- Recent outbreaks and associated domestic and trans-Tasman border closures to have an impact in the order of $1.4bn on the Group’s Underlying EBITDA in 1H22
- Group Domestic capacity to increase from 38% in 1Q to 53% of pre-Covid capacity in 2Q and rise to ~110% in 2H22
- Recovery plan progress remains ahead of schedule: The Recovery Plan delivered $650m in savings in FY21, ahead of its $600m target and remains on track to deliver $850m by the end of FY22 and greater than $1bn in ongoing savings by the end of FY23
- Liquidity boosted by securing a further $0.6bn
- Balance sheet repair commenced, reducing net debt to $5.9bn by end of FY21 from $6.4bn in 3Q21, with further debt reduction remaining a priority
- Investment grade credit rating of Baa2 from Moody’s maintained
- Shareholder distributions scrapped until the Group’s earnings and balance sheet have fully recovered in accordance with the Financial Framework
Company Description:
Qantas Airways Ltd (QAN) provides passenger and freight air transportation services in Australia and internationally. QAN also operates a frequent flyer loyalty program. QAN was founded in 1920 and is headquartered in Mascot, Australia support.
(Source: Banyantree)
General Advice Warning
Any advice/ information provided is general in nature only and does not take into account the personal financial situation, objectives or needs of any particular person.