Dalrymple Bay (ASX:DBI)
The FY22 result delivered the substantial earnings growth we were expecting following finalisation of Terminal Infrastructure Charge (TIC) negotiations in 2H22. DPS guidance had already been provided and was unchanged (albeit the growth outlook was not reaffirmed).
Add retained, given forward cash yield of mid-8% and c.6% price growth potential.
TPG Telecom Limited (ASX:TPG)
TPG FY22 result was, pleasingly, inline with expectations. Revenue was up 1.5% YoY and Underlying EBITDA was up ~4% YoY to $1,793m.
TPG delivery subscriber, ARPU and EBITDA growth. We retain our Add recommendation.
Stanmore Resources (ASX:SMR)
Key CY22 financials easily beat our expectations on higher PCI price realisations. We now forecast SMR to reach a net cash position during the 1H23.
SMR enjoys clear M&A advantages in the Bowen Basin and we think positioning for possible acquisitions will far out-rank dividends through 2023.
Bega Cheese (ASX:BGA)
As expected, BGA's 1H23 result was weak with NPAT down 74%. Margins were materially impacted by higher milk and other inflationary costs and the lag impact of implementing price rises.
While we continue to have concerns about the dairy industry, we think BGA is now through the worst of it. We rate BGA's new management highly and expect them to deliver improved returns over the coming years. We upgrade to an Add rating.
Airtasker Limited (ASX:ART)
ART released its 1H23 result. While most metrics were pre-released, GMV growth of +58% on pcp (to ~A$132m) and revenue growth of +57% on pcp (to ~A$22m) was a resilient performance from the local services marketplace, in our view.
Whilst some softness was seen at top-of-funnel demand (posted tasks) as consumer confidence remains subdued on macro uncertainty, we note supply side normalisation (labour) has begun and assisted completion rates and helped underpin ART's GMV growth.
Waypoint REIT (ASX:WPR)
WPR's FY result was in line with guidance with the focus in 2022 on non-core asset sales; capital management initiatives (buy-back completed); and balance sheet (hedging +90%).
CY23 distributable EPS guidance to be in line with CY22 which equates to a distribution yield of +6%. We retain an Add rating.
Ai-Media (ASX:AIM)
AIM's 1H23 result was broadly in-line with our expectations. The company booked revenue of $29.7m for the year.
More importantly, AIM's gross profit dollars increased YoY and HoH. We calculate that gross profit for SaaS (and other) was ~53% of total growth profit. Since its nearly double the margin of legacy and growing much faster this means AIM has cleared the critical inflect point in its transition to a SaaS business.
Growing profits gets much easier from here. Add recommendation retained.
Kina Securities Ltd (ASX:KSL)
KSL's FY22 Underlying NPAT (PGK106m) was +10% on the pcp and in-line with MorgansE. Overall, we saw this as a broadly solid FY22 result, with bad debts well contained and KSL delivering an impressive ~18% FY22 ROE.
KSL continues to deliver solid underlying profit growth, and trading on ~6x FY23F earnings and a >10% dividend yield, we see the stock as too cheap. Add maintained.
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