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clock Created with Sketch. 29/09/21
16:35
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Originally posted by g41:
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Macquarie 19/8Record result • FY21 Underlying NPAT $97m increased +52% YoY and beat our estimate by +8% . Sales increased +26% YoY to $437m , underpinned by across the board strength in Metal Detection sales and a material step - up HoH in both the Communications and Tracking Solutions segments. Operating leverage apparent with 2H 21 sales + 25% HoH , NPAT +36% and margin +180bps . Stat NPAT $90.2m includes $5.2m acquisition related expenses and $1.9m restructuring expenses . • Significant investment in manufacturing , inventory and engineering . CDA invested further in its manufacturing capacity during the period and i nventory more than doubled to $66m to minimise supply disruption and reduce freight costs. Engineering spend $33m comprised 8% of sales up from $31m pcp. • New products tracking well, demand strong . CDA is seeing strong demand in artisanal mining across all price points . The Gold Monster, Gpx6000 and Vanquish detectors are all performing well wit h continued geographic and big box retail expansion driving distribution. • Strong cash generation. Net cash from operating activities $131m was +26% YoY , with ending net debt ending just $2m after funding $174m for the acquisitions of DTC and Zetron . The f inal dividend 16.5cps took full year d ividend to 27cps, +24% YoY with the payout policy to remain a t ~50% NPAT. Momentum continuing into FY22 • CDA note it is too early to give profit guidance, however the business is well placed to deliver another strong performance in FY22 with the record run rate of FY21 being maintained thus far in FY22 . Demand for metal detection products remains strong with Minelab expected to benefit from GPX6000 sales that should mak e a significant contribution to FY22 sales . Uncertainty around Tactical Communications and supply chain due to COVID - 19 still exists . • MD/CEO transition: MD Donald McGurk has advised the board of his intention to retire from his role in the next 9 - 12m. He w ill remain as MD until a successor is appointed to ensure a smooth transition. Earnings and target price revision • FY22/23 e + 3 %/ + 2 %. TP + 3 % to $17. 50 ps in line with earnings revisions. Price catalyst • 12 - month price target: A$ 17.50 based on a EV/EBIT methodology. • Catalyst : AGM trading update, M&A, Action and recommendation • Record result , strong momentum continuing into FY22 . Retain Outperform
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Yeah, there's nothing in there we didn't already know. This is how short term market momentum works. The fear and doubt creeps in making you think that maybe, the company isn't that great.
(20min delay)