Positive Earnings; How Good

August 25, 2022

Good Morning,

Adrian Rurawhe is New Zealand's new speaker, a major malfunction hit Facebook users' feeds, Japan is considering building new nuclear plants, business activity in the US, Europe, and Japan fell in August & global dividend payments hit a record high.

Let's jump in.

Before The Bell

Markets

  • The NZ and Aussie markets railed on the back of positive earnings.

  • The US and London markets were down slightly.

  • Investors are eagling waiting for J Pow's speech at Jackson Hole on Friday to see how the Fed is planning to tackle inflation and manage interest rates.

Earnings

  • Ebos rose 1.3% as it reported recorded revenue of over $10B (AUD) and a net profit after tax increase of 9.3%. (NBR)

  • HomeCo jumped 10.9% after reporting it had more than quadrupled its assets under management. (AFR)

  • Iluka Resources benefited from increasing commodity prices, allowing them to double the interim dividend. This led to the stock rising by 9.8%.

  • Meridian dropped 2.9% after profits remained flat, revenue decreased, and the expected capital costs of its Harapaki project increased. (NBR)

  • Spark gained 1.5% as it reported a 7.6% increase in profit. It also promised to return $350m (NZD) to investors via a share buyback and increased its dividend guidance for next year. (NBR)

  • WiseTech Global surged 12.8% after it reported an 80% increase in net profit. (AFR)

News Summary

  • Adrian Rurawhe is New Zealand's new speaker and has received cross-party support. (Stuff)

  • Tupperware is closing its New Zealand business. (Herald)

  • The NZ government announced it would force Countdown and Foodstuffs to sell groceries to rival supermarkets at prices set by regulation if they fail to supply rivals voluntarily. (Stuff)

  • Kiwi cleantech Mint Innovation opens Sydney biorefinery. (NBR)

  • Westpac, NAB, AMP, ANZ, Macquarie and the Commonwealth bank have paid or offered to pay a combined total of $3.6B (AUD) as of June 30 as compensation. (9 News)

  • NSW nurses and midwives will strike for 24 hours next Tuesday. (9 News)

  • Australian unions push for sector-wide bargaining rights. (AFR)

  • Fortescue plans to build a new WA port as farmers warm to wind turbines. (AFR)

  • EML was hit by another fraud. (AFR)

  • A major malfunction hit Facebook users' feeds. (9 News)

  • Tiger Management's founder Julian Robertson died at 90. (Herald)

  • Japan is considering building new nuclear plants. (BBC)

  • IMF team holds talks with crisis-hit Sri Lanka on debt restructuring. (RT)

  • The US will announce $3B (USD) in new military aid for Ukraine. (RT)

  • White House cuts FY22 budget deficit forecast. (RT)

  • Business activity in the US, Europe and Japan fell in August. (WSJ)

  • Global dividend payments hit record high (AFR)

Deal Flow

Investments/ M&A

  • Indian state-owned refinery Chennai Petroleum formed a joint venture with parent company Indian Oil and others to build a ~$4B (USD) refinery. (RT)

  • Japan's Olympic Corp is close to selling its microscope unit to PE firm Bain Capital for $2.2B (USD). (RT)

  • Bill Ackman sold his full 5% stake in Domino's Pizza for $800m (USD). (BI)

  • TPG-owned Greencross, an Australian pet care business, is considering selling its veterinary operation worth ~$1B + (AUD). (AFR)

  • APA Group has put a ~$500m (AUD) bid in for Basslink. (AFR)

  • Funds management business Perpetual & Pendal Group are seeking to finalise a merger before Perpetual's shareholder day today. (AFR)

  • Maggie Beer is close to finalising the sale of two troublesome dairy businesses. (AFR)

  • North Sydney Business Charters are looking for buyers. (AFR)

VC & Fundraising

  • Celonis, a process mining software vendor, secured an additional $1B (USD) in a series D round at a $13B (USD) valuation. (TC)

  • Yonghui Fresh Food, a Chinese B2B grocery supply firm, is seeking ~$200m (USD) at a $1.5B (USD) valuation before its planned IPO in Hong Kong next year. (BBG)

Equity Raises 

  • Kakao Piccoma, a south Korean digital comic company, will delay its Tokyo IPO until 2023. It is aiming for a valuation of $6B+ (USD). (BBG)

  • Betagro, a Thai meat producer, is seeking to become the second largest IPO in Thailand this year as it aims to raise ~$554m (USD). (BK)

Debt

  • Queensland's State Investment Fund has committed $500m (AUD) to private debt via QIC. (AFR)

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