Up 10% in a day, what's going on?, page-10

First 10 Last

Share
Profile

Follow
Empty

2,566 Posts.

282

04/09/19

09:18

Post #: 40301669
Share

Originally posted by Ashentegra: ↑

Positive comment in today's AFR. Excerpt:

Infigen Energy is a small cap stock which reported a strong 2018-19 result.

Infigen management has done a good job of diversifying its business, while locking in more of its earnings stream to soften the impact from declining Large-scale Generation Certificate (LGC) spot prices.

It reported revenue growth of 9 per cent and net profit growth of 8 per cent, driven by 12 per cent production growth.Importantly, Infigen has 75 per cent of production contracted under Purchase Power Agreements (PPAs) and commercial and industrial contracts for 2019-20, reducing exposure to merchant revenues which it has relied upon in the past. This provides a much greater level of certainty over cash flows and guards against a sustained decline in spot energy prices in key markets.

Cashflow performance was also strong in 2018-19 with operating cash flow up 44 per cent and 110 per cent cash conversion.With a much-improved balance sheet, this enabled Infigen to begin paying a dividend, while continuing to invest growth capex of $154 million into acquisitions and new projects.

We expect a similar scenario in 2019-20 as Infigen continues to generate significant cash flow, with capex likely to fall in 2019-20 (pending any further significant acquisitions).

We continue to believe there is comfortable upside at the current share price given that Infigen trades on multiples well below peers and is now offering a modest dividend yield (3.3 per cent).

David Macri is the chief investment officer of Australian Ethical Investment.
_______

It looks like IFN will open strongly. This is one of the rare occasions one can honestly say;

Have a nice day!

Ash

Expand

Indeed a very positive article.

Notice that CMC Markets have updated their Fair Value Estimate overnight from $1.138 to $1.229.

IFN Price at posting: 66.0¢ Sentiment: Buy Disclosure: Held
1 Upvote

0 Great analysis

Reply

Top Stories

Week 46 Wrap: Copper hits 2mth low as Trump threatens net zero pace; US rally fades; HotCopper’s picks

CUF

CuFe sells its Crossroads gold royalty to Northern Star for $4M cash; says better than waiting for mine launch

CLE

Cyclone signs MOU with Vale for development of Iron Bear play

GDM

Banshee's historic trenches prove rich in antimony and gold for GDM

3DA

To make modern missiles, you need 3D Printing. And in that gold rush, Amaero is selling shovels

IRX

InhaleRX gains approval for clinical trial to test non-opioid therapy for cancer pain

BNL

Blue Star Helium sees approval for five more wells at 'Galactica/Pegasus' project in Colorado

HotCopper Highlights: Your most watched stocks for Week 46, 2024

EEG

NT Gov't delivers environmental approval for Empire Energy's Beetaloo Carpentaria pilot gas play

BTH

Bigtincan's Board backs Investcorp offer: Why a NASDAQ listing could be game-changing

First 10 Last

Add IFN (ASX) to my watchlist

Up 10% in a day, what's going on?, page-10

Top Stories

Week 46 Wrap: Copper hits 2mth low as Trump threatens net zero pace; US rally fades; HotCopper’s picks

CuFe sells its Crossroads gold royalty to Northern Star for $4M cash; says better than waiting for mine launch

Cyclone signs MOU with Vale for development of Iron Bear play

Banshee's historic trenches prove rich in antimony and gold for GDM

To make modern missiles, you need 3D Printing. And in that gold rush, Amaero is selling shovels

InhaleRX gains approval for clinical trial to test non-opioid therapy for cancer pain

Blue Star Helium sees approval for five more wells at 'Galactica/Pegasus' project in Colorado

HotCopper Highlights: Your most watched stocks for Week 46, 2024

NT Gov't delivers environmental approval for Empire Energy's Beetaloo Carpentaria pilot gas play

Bigtincan's Board backs Investcorp offer: Why a NASDAQ listing could be game-changing

Featured News