Fat Prophets > Australasian Equities
January 24, 2024 •

Worth Holding Shopping mall owner Scentre Group (ASX.SCG) shares advanced and continue to trend higher after releasing robust underlying results and upbeat distribution guidance of at least 17.2 cents per stapled security in 2024, above consensus. Turning to the charts, Scentre Group has confirmed a topside breakout from a multiyear primary downtrend which is encouraging. An advance above $3.20 at the top of the range, would confirm an inflection and raise scope for additional upside to the next resistance level…

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A catalyst around the corner? China’s Ministry of Commerce (MOFCOM) has issued an interim draft proposing the removal of tariffs on Australian wine exports. Although not a final determination, we would be very surprised if the removal of tariffs didn’t go through after reaching this advanced stage. Speaking at The Australian Financial Review Business Summit, the Chinese ambassador indicated this would be the likely outcome. The AFR quoted Xiao Qian as saying, “Currently, Chinese authorities are reviewing and investigating our…

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The next steps Sonic Healthcare shares took a hit after the recently reported 1H24 results, interrupting a fledging recovery that began playing out in late 2023, as top-line growth was overshadowed by a sharp fall in earnings. The collapse in pandemic-related revenues made for a stiff headwind in what CEO Colin Goldschmidt calls a “transition” year. Still, some notable cost increases squeezed margins, and net interest expense picked up. Sonic maintained the FY24 EBITDA guidance range of $1.7 to $1.8…

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What we’ve been waiting for Suncorp (ASX.SUN) surged to a 5-year high after booking a major win where the Australian Competition Tribunal overruled anti-competition watchdog, the ACCC, after authorising ANZ's proposed $4.9 billion acquisition of Suncorp Bank. At this point, the takeover will still need approval from the Treasurer, Jim Chalmers, and an official sign-off from the government of Queensland. Before reviewing the update, a detour to the technicals and Suncorp has inflected above historic resistance after breaking out above…

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Solid foundations despite a setback Even though Evolution Mining faced a challenging December quarter, marked by crimped production at the Red Lake mine in Canada and Mungari in Western Australia, higher gold prices boosted underlying earnings and net mine cash flow metrics. The balance sheet remains rock-solid with an increase in the cash position and lower gearing, while there has been a substantial boost to resources. The acquisition of the 80% stake in the Northparkes copper-gold mine located northwest of…

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New Directions? Shares in Alliance Aviation Services dipped lower despite 1H24 results revealing a three-fold jump in statutory profit before tax of $37.7 million. Alliance Aviation is the biggest independent aviation training centre in the United States and Latin America. Turning to the technicals, listed on the ASX, Alliance Aviation has corrected sideways since 2020 in a primary downtrend. While the stock is holding above support at $2.70, only a breakout above $3.30 and price action follow through would confirm…

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Passing the Baton Shares in National Australia Bank (ASX.NAB) inched slightly lower after CEO Ross McEwan announced his retirement with plans to fully step down at the start of April. McEwan was appointed CEO back in 2019 during a difficult time for the bank and has since steered the ship in the right direction with the shares up some 20% during his tenure. McEwan will be replaced by Andrew Irvine, the bank’s group business and private banking lead. Today, we…

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A Nickel Thorn on the Side Shares in the Big Australian, BHP (ASX.BHP), announced lower full-year production guidance in the Queensland coal operations after a "tough six months" for the 1H24 period. Another headache for management is the substantial dip in nickel prices – falling nearly 50% - following an increase in nickel exports from Indonesia, fuelled by Chinese investment. The weakness in nickel prices has pushed management to evaluate options at the Nickel West operations in WA; we expect…

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