Investment Rating - The report assigns a "Buy" rating for Challenger Financial Services Group with a 12-month price target of A$8.00, indicating a potential upside from the current price of A$6.88 [2][9]. Core Insights - Earnings and dividends exceeded expectations due to improved core margins and reduced costs, leading to a positive market reaction despite some concerns regarding capital position [6]. - Normalised NPBT increased by 17% to A$608 million, surpassing both UBS estimates and consensus [3]. - The Life EBIT rose by 17% to A$634 million, also above consensus expectations, reflecting strong operational performance [4]. Financial Performance - Normalised NPAT was reported at A$417 million, aligning with UBS estimates and consensus [3]. - Final dividend per share (DPS) was set at 13.5 cents, slightly above UBS and consensus estimates [3]. - Life annuity sales decreased by 6% to A$5.19 billion, which was above UBS estimates [4]. Guidance and Projections - For FY25, the guidance for normalised NPBT is set between A$640 million and A$700 million, with consensus at A$669 million [5]. - The effective tax rate is projected at 31.3%, with a cost-to-income ratio expected to improve to 32-34% [5]. - The report anticipates a normalised pre-tax ROE target of RBA cash rate +12%, currently at 11.2% post-tax [5]. Market Position and Valuation - Challenger is recognized as the dominant annuity provider in the Australian market, with a diversified financial services portfolio [12]. - The report highlights a strong balance sheet with a PCA ratio of 1.67x, indicating improved capital adequacy [4][6]. - Forecasts suggest a price appreciation of 16.3% and a dividend yield of 4.0%, leading to an overall forecast stock return of 20.3% [11].

First Read Temple & Webster Group UBS SnapShot: FY24 Results ONE LINER: EBITDA beat, sales inline, trading update +26% y/y OUTLOOK AND GUIDANCE: FY25 commenced strongly with revenue first 6wks up 26% year on year. FY25 will continue to include an additional 2-3% of revenue invested into brand marketing across brand and performance channels. FY25 EBITDA mgn inc marketing investment 1-3%. EBITDA margins to incrementally build from FY26 towards LT BAU EBITDA margin of +15%. Current $30m on-market buyback will ...

ab 13 August 2024 Global Research and Evidence Lab First Read Seek UBS SnapShot: 2H24 Result ONE LINER Top line delivered in 2H but higher D&A and interest drag on NPAT. FY25e outlook suggests yield stronger, and assuming worse than expected ANZ vols 2H24 KEY NUMBERS Rev $563m (UBSe $563m, VA cons $537m); EBITDA $230m (UBSe $235m, cons. $238m); Adjusted NPAT $64m (UBSe $74m, cons. $80m); Capex -$73m (UBSe $-88m, cons -$89m); Div 16cps (UBSe 15cps, cons. 16cps) 2H24 RESULT HIGHLIGHTS 1. ANZ Rev -7% y/y to $4 ...

ab 12 August 2024 Global Research and Evidence Lab India Economic Comment Headline CPI inflation softens on base effect Headline CPI inflation eases to 3.5% in July, core inflation at 3.4% Headline CPI inflation eased to a five-year low of 3.5% YoY in July (vs. 5.1%YoY in the previous month), largely due to base effect despite a pick-up in sequential momentum in food prices (largely seasonal) and hike in telecom tariffs by telcos (15bps contribution). This inflation print was lower than consensus expectatio ...

Investment Rating - The report assigns a "Buy" rating to the company with a 12-month price target of A$2.58, while the current price is A$2.25 [5][9]. Core Insights - The company reported FY24 results that were 2% below UBS estimates due to lower net property income (NPI) and increased property expenses. FY25 guidance for funds from operations per unit (FFOpu) is also 3% below consensus [2][6]. - Key financial metrics include FFO of $178.4 million, which is lower than the expected $181.3 million, and a decrease in FFOpu to 15.4 cents, down 9% compared to the previous corresponding period [3][5]. - The company is experiencing growth in supermarket sales, with a moving annual total (MAT) increase of 3.0% and a 1.1% increase in discount department stores (DDS) [4]. Summary by Sections Key Numbers - FFO: $178.4 million vs. UBS estimate of $181.3 million; FFOpu: 15.4 cents (-9% vs. pcp) vs. UBS estimate of 15.6 cents [3]. - Gross rents increased to $880 per square meter from $856 per square meter [4]. - Specialty vacancy rate improved to 4.7% from 4.9% [4]. Result Highlights - Supermarkets MAT growth of 3.0% and DDS growth of 1.1% [4]. - Leasing spreads for renewals increased by 5.2% [4]. - The company’s net tangible assets (NTA) decreased to $2.42 from $2.45 [4]. Valuation - The valuation method used is a blended NAV SOTP/12-month forward DCF analysis, resulting in a price target of A$2.58 [5][13]. - The forecast price appreciation is 14.7%, with a forecast dividend yield of 6.4%, leading to a total forecast stock return of 21.1% [11]

ab 13 August 2024 Global Research and Evidence Lab Equities Morning Expresso – Australasia Tuesday, 13 August 2024 Australasia Marcus Curley Analyst marcus.curley@ubs.com +64-9-913 4750 Today's Notes INDUSTRIALS Carsales.com.au - Good outlook into FY25e JB Hi-Fi - FY24 Result: JB Aust EBIT margin 'base' raised Aurizon - FY24 result: Capital flexibility preserved FINANCIALS Australian Banks - Capital returns are possibly mispriced RESOURCES Alcoa Corporation - Initiate coverage on AAI.AU Buy rated A$58/sh Be ...

Investment Rating - The report assigns a 12-month rating of "Buy" for CSL, with a price target of A$340.00, while the current price is A$308.93 [9][22]. Core Insights - The financial results for CSL are largely in line with expectations, with a slight miss in Behring's core gross margin by approximately 60 basis points, which may raise investor concerns [2][6]. - Revenue for FY24 is reported at $14,800 million, reflecting an 11% increase, which aligns with consensus estimates [3][4]. - The underlying gross margin stands at 54.1%, exceeding consensus by 65 basis points [3]. - NPATA is reported at $2,907 million, also an 11% increase, but 5% below consensus expectations [3]. Revenue Breakdown - Behring's revenue is reported at $10,608 million, a 14% increase, consistent with consensus [4]. - Vifor's revenue is $2,064 million, in line with consensus, with an underlying gross margin of 68.5%, surpassing consensus by 249 basis points [4]. - Seqirus generated revenue of $2,128 million, a 5% increase, which is 2% above consensus, with an underlying gross margin of 61.9%, exceeding consensus by 147 basis points [4]. Outlook and Guidance - For FY25, CSL provides revenue growth guidance of 5-7% (constant currency) and NPATA growth guidance of 10-13% (constant currency) [5][6]. - The NPATA growth guidance aligns with expectations, although consensus is slightly more optimistic [6]. Valuation - The valuation of CSL shares is based on a discounted cash flow (DCF) model, with no changes made to estimates following the report [7].

ab 13 August 2024 Global Research and Evidence Lab First Read James Hardie Industries UBS SnapShot: 1Q-25 Result ONE LINER: 1Q beat, 2Q soft but +ve FY25 NPAT guide unchanged (ex lower end tax -50bps) 1Q-25 KEY NUMBERS: 1) Group underlying NPAT US$178m vs UBSe US$170m (vs consensus US$167m). 2) Group underlying EBIT US$236m vs UBSe US$230m. 3) North American volumes of 752mmsf vs UBSe 764mmsf, 2% behind. 4) North American EBIT of US$227m vs UBSe US$229m, implies a margin of 31.2% vs UBSe 31.7%. 5) APAC volu ...

ab 12 August 2024 Global Research and Evidence Lab JB Hi-Fi FY24 Result: JB Aust EBIT margin 'base' raised FY24 Result: Above mkt & UBSe with Jul-24 trading mixed (strong in JB Aust) JBH FY24 sales/EBIT/NPAT -0.4%/-15.8%/-16.4% vs pcp with NPAT (A$439m) above Visible Alpha (mkt) (A$423m) and UBSe (A$409m). JB Aust, The Good Guys (TGG) and JB NZ EBIT above mkt & UBSe. Jul-24 LFL sales mixed: JB Aust +5.2% (+2.3% 2yr stack); TGG +2.7% (-9.3% 2yr stack); and JB NZ -4.9% (+5.1% 2yr stack). We revise FY25E/26E E ...

ab 12 August 2024 Global Research and Evidence Lab Powered by YES UBS Evidence Lab Equities Australia Transportation Services 12-month rating Neutral | --- | --- | |------------------------------|------------------| | 12m price target | A$3.40 | | | Prior : A$3.70 | | Price (12 Aug 2024) | A$3.30 | | RIC: AZJ.AX BBG: AZJ AU | | | Trading data and key metrics | | | 52-wk range | A$4.02-3.30 | | Market cap. | A$6.07b/US$4.01b | | Shares o/s | 1,841m (ORD) | | Free float | 100% | | Avg. daily volume ('000) | 6 ...