NZX - NZ Exchange

[Davexl]

NZX on the blink again - not reporting search lookups for some companies or stock info...intermittently, now back online?

[peat]

The big dude at Manson’s said this
He admits to once promoting a public stock listing for Mansons but now says private is right.

[SCOTTY]

Dow up 246 points last night. Could suggest a good New Year start for the NZ market tomorrow

[nztx]

https://www.nzherald.co.nz/business/...QCK6DNCPQQN4M/

Top-of-range annual earnings expected for NZX

What an impressive increase

The market lapped it up so much the SP slid in sympathy with most other listings

To think that the Market darling at 95c in March 2020 climbing to $2.15 in January 2021
didn't even blink before continuing it's mostly downhill slide since

Does nobody like their dividends being increased in multiples of 1/10 of a cent ?

[kiora]

Another high flyer slips by
https://www.nzherald.co.nz/business/...H4SMYKJX3KEXM/
https://www.soulmachines.com/

[nztx]

Another high flyer slips by
https://www.nzherald.co.nz/business/...H4SMYKJX3KEXM/
https://www.soulmachines.com/

I see that .. Darn another one got away

Must be too many holes (or just too darn high fees) in NZX's Butterfly net

[LaserEyeKiwi]

Full year results + retail placement + announcement they are entering an ownership stake in another dairy auction platform with Fonterra:

https://www.nzx.com/announcements/387398

[Shareguy]

I currently do not hold, but have placed an order in the shortfall institutional bookbuild. May or may not get them we will see. Seems a good entry price for a “moat” protected business with some growth potential with new purchases. Sure the asx has and is taking business but I see this as a safe bet stock.

Craigs have just released a note as follows

NZX have announced a $44.3m equity raise via a fully underwritten pro-rata 1 for 9 accelerated renounceable entitlement offer, with the use of proceeds going toward 1) replenishing the balance sheet post the ASB acquisition ($25m), which will reduce gearing down from c.20% to c.13% 2) funding the investment into GDT ($12.5m), and additional growth investment into GDT, subject to Board approval ($3.2m); and 3) to provide capacity to support potential investment across the business as it continues to scale. The issue price of the shares will be $1.42, which is a 15% discount to the dividend adjusted theoretical ex-rights price of $1.67 and an 16.4% discount.

WHATS YOUR THOUGHTS ?

[Greekwatchdog]

Shareguy, I sold out at $2.00 sometime ago. My average was buy was $1.07. I am looking for an re entry point and think this is it once market reopens. I see it as a inflation proof, defensive place to put your money. My advisers only concern is still not enough quality IPO's.

For Bars review.
NZX's FY21 result was solid with the company also announcing an acquisition to acquire a 33% stake of Global Dairy Trade (GDT), funded by a proposed capital raise. We downgrade our rating to NEUTRAL on valuation grounds, with the stock trading on an FY22 PE of 30x and FCF yield of 1.8%. The company is raising NZ$44m to fund the acquisition through an equity raise which will cover both the stake in GDT of ~NZ$15m and repayment of debt for the previously announced NZ$25m acquisition of ASB's Superannuation Master Trust. The strategic rationale of the acquisition for NZX is to grow volumes across its dairy derivatives division. Although we believe long term opportunity exists around GDT we expect it to be a number of years before this translates to material cash generation. Whilst NZX remains a solid business, we expect to see a delay in anticipated operating leverage following both the dual acquisition and growth initiatives across the business.


link
NZX Code NZX
Theoretical Share price NZ$1.67
Target price NZ$1.72 (from 2.03)
Risk rating Medium
Issued shares 312.3m
Market cap NZ$522m
Avg daily turnover 184.8k (NZ$353k)
link
Financials: Dec/ 21A 22E 23E 24E
NPAT* (NZ$m) 16.4 17.2 18.6 22.5
EPS* (NZc) 5.8 6.1 6.6 8.0
EPS growth* (%) -7.8 4.9 8.0 21.3
DPS (NZc) 6.1 6.1 7.5 8.0
Imputation (%) 100 100 100 100
*Based on normalised profits
link
Valuation (x) 21A 22E 23E 24E
PE 28.8 27.5 25.4 21.0
EV/EBIT 21.6 21.3 18.6 15.5
EV/EBITDA 14.5 14.0 12.6 11.1
Price / NTA n/a n/a n/a n/a
Cash div yld (%) 3.7 3.7 4.5 4.8
Gross div yld (%) 5.1 5.1 6.2 6.7
What's changed?
Earnings: FY22 EBITDA reduced -2.2% to NZ$37.7m vs underlying FY22 EBITDA guidance of NZ$34.8m to NZ$39.3m
Target price: Reduced -15% from NZ$2.03 to NZ$1.72 due to 1) WACC changes, 2) dilution from capital raise, 3) reduction in long term margin assumption, 4) slight increase in capex assumptions, and 5) earnings revisions
Rating: Downgraded from OUTPERFORM to NEUTRAL
Global Dairy Trade (GDT) details
NZX has signed a commercial term sheet to acquire a 33.3% stake in GDT from Fonterra (FSF) for NZ$15m (including expenses associated with development), alongside the European Energy Exchange (EEX) which is expected to acquire a third of the business. The deal is likely to be completed in mid-2022 although it remains subject to approval from the relevant competition law authorities, including those in Europe (although we expect this to be a formality). The GDT acquisition is complementary to NZX global dairy derivatives market, currently operated in partnership with the Singapore Exchange (SGX). The acquisition provides opportunities to NZX through 1) greater control of the dairy auction which it hopes will allow it to hold more frequent auctions, 2) attracting more participants to the GDT due to it being a more neutral entity, and 3) increasing the number of risk management contracts available with the long term aspiration to grow financial products to many multiples of the physical market. ​​​​​​​


NZ$44m capital raise to fund both GDT and ASB acquisitions
NZX is intending to raise NZ$44m of capital thorough a 1 for 9 pro-rata accelerated renounceable entitlement offer. The issue price of NZ$1.42 represents a -15% discount to the dividend adjusted theoretical ex-rights price (TERP) of NZ$1.67 on 16 February 2022. NZ$12.5m will be used to fund the GDT acquisition, NZ$3.2m to fund growth opportunities relevant to the acquisition and NZ$25m to pay down debt taken out to finance the ASB acquisition that was announced in late 2021 and completed earlier in February 2022.

[Shareguy]

Thanks Greekwatchdog. If I miss out on the bookbuild might buy some anyway depending how close it gets to terp.