Four Stocks In Limelight: SMIN, HGM, SHB and WG

Four Stocks In Limelight: SMIN, HGM, SHB and WG
Smiths Group Plc

Incorporated in 1914, Smiths Group Plc (LSE: SMIN) is a technology conglomerate providing various technological solutions across Industries, Energy, Aerospace, Defence and Healthcare sectors operating through its five divisions – John Crane, Smiths Medical, Smiths Detection, Smiths Interconnect and Flex-Tek. The group is a global leader in the rotating equipment business through the John Crane Division and UK leader in providing Technological Solutions to the security and defence sector through the Smiths Detection and Interconnect Divisions. The group also boasts of strong proprietary technology and expertise in applied engineering because their Intellectual Property is extremely well protected and defensible. The group has seen an overall growth of about 3-4% in the last one year in terms of market penetration.

SMIN Financial Performance (Interim Results Half year ended 31st January 2019)

As per the first half results reported, the company has delivered sustainable growth in terms of the revenue. The reported underlying headline revenue growth has been of 2 per cent to £1,573 million in H1 FY19 in comparison to £1542 million in H1 FY18. The revenue growth has been driven by the good performance of John Crane, Flex-Tek and Smith interconnect but were in part offset by the decline in the sales for Smith Medical and untimely deliveries of Smiths Detection. Underlying headline Operating Profit was down 2 per cent from H1 FY18 at £248 million to £246 million in H1 FY19. However, all other divisions combined except Smiths Medical reported an underlying headline operating profit growth of 2 per cent. There has also been a slight 1 per cent decline in the headline Profit after Tax (PAT) to £160 million in H1 FY19. The R&D investment grew by £80 million or 5.1 per cent of sales as compared to 4.6 per cent in H1 FY18. The vitality index, which is a KPI measure of revenue from the new products launched, stood at 13 per cent, with the target of taking it to around 20 per cent in the medium term, which reflects the increased R&D investment.

 

SMIN Stock Performance

On 5th September 2019, at 08:20 AM GMT while writing, SMIN shares were trading at GBX 1696.50 per share; up by 1.04 per cent as compared to the closing price level of the previous day which was GBX 1679.0. The company’s M-cap (market capitalisation) was recorded at £6651.50 million at the time of writing. On 5th September 2019, SMIN shares traded at a new 52-Week high price of GBX 1701.00 for a brief period. The 52-Week low of the stock was GBX 1256.74 on 23rd October 2018.

 

Highland Gold Mining Limited

Based in Jersey, UK, Highland Gold Mining Limited (AIM: HGM) has an established portfolio of Gold Mining Operations in the Russian Federation. The company acquires, consolidates and develops a portfolio of quality gold mining projects in Russia. The company is currently operating four gold mines, three development projects and three exploration properties. 

HGM Financial Performance (Interim results Half year ended 30th June 2019)

In the first half of the year, the company reported Gold Sales of U$142.6 million in HY1 2019, which is a Year on Year increase of 17.7 per cent from H1 FY18 Sales of US$121.2 million. Total revenue, including other incomes surged to US$ 174.7 million by 18.9 per cent from the H1 FY18 figure of US$146.9 million. This was a result of solid and stable gold prices in the global market. Albeit the high costs at the newest mine and a higher maintenance capex to replace the old machinery, the company’s EBITDA Margin stayed very stable at 50% versus 49% in H1 FY18. Also, the absolute EBITDA in the first half of the year was US$86.5 million, an increase of 21.2 per cent from H1 FY18. The company also paid out a dividend of GBP 0.05 per share to be paid to shareholders on 04 October 2019.

HGM Stock Performance

On 5th September 2019, at 08:45 AM GMT while writing, HGM shares were trading at GBX 256.20 per share; up by 2.64 per cent as compared to the closing price level of the previous day which was GBX 249.6. The company’s M-cap (market capitalisation) was recorded at £908.29 million at the time of writing. On 5th September 2019, HGM shares traded at a new 52-Week high price of GBX 257.20 for a brief period. The stocks 52-Week low was of GBX 130.5 on 7th September 2018. The stock has surged about 88.95 per cent in the last one year. The stock’s traded volume was hovering around 875,820 at the time of writing. The stock’s Beta was at 1.4462, which implies that the stock is more volatile than the market index.

 

Shaftesbury Plc

Shaftesbury Plc (LSE: SHB) is a Real Estate Investment Trust which operates through long term investment and management of large property holdings. The company manages around 590 properties in the retail, café and leisure spaces. Its portfolio includes shops, restaurants, cafes and Bars in the Carnaby, Chinatown, Covent Garden and Charlotte street areas. Their managed area also includes 406,000 square feet of office space in the London Metropolitan area.

SHB Financial Performance (Interim results Half year ended 31st March 2019)

The company has reported a like-for-like combined portfolio valuation growth of 0.3 per cent in the last 6 months.

Net Property Income of the company rose by 5.2 per cent to £48.6 million in H1 FY19 from £46.2 million in H1 FY18 majorly driven by the rent receivables, which showed a like-for-like increase of 6.4 per cent. Robust growth of 6 per cent was also displayed in the EPRA EPS which was at GBX 8.9 per share in the first half of the year following which the company announced an interim dividend of GBP 8.7 per share.

Outlook – One of the major focus areas for the company is the low vacancy of the properties. The company has continually invested in leasing activity to maintain a high occupancy in their properties which has resulted in a large rental income and in turn strong top line growth.

SHB Stock Performance

On 5th September 2019, at 09:30 AM GMT while writing, SHB shares were trading at GBX 849.50 per share; down by 0.59 per cent as compared to the closing price level of the previous day which was GBX 854.5. The company’s M-cap (market capitalisation) was recorded at £2626.84 million at the time of writing. On 8th November 2018, SHB shares traded at a 52-Week high price of GBX 935.5. Stocks 52-Week low was of GBX 734.00 on 14th August 2019. The stock has plunged about 7.31 per cent in the last one year. The volume of the stock traded was 28,310 shares while writing.

The stock Beta of 0.4461 indicates that the stock is comparatively less volatile in comparison to the market index.

 

Wood Group (John) Plc

The Wood Group Plc (LSE: WG) is a UK based Energy company that provides a range of services to Oil and Gas and Power Generation industries. The group’s capabilities include – Engineering, Production Support, Maintenance Management and industrial gas turbine overhaul. The group operates through two divisions, namely – Wood Group Engineering segment which provides research and management-based services while Wood Group PSN Provides production support services. Wood Group is the second biggest Energy Company in the UK in terms of Market Cap.

WG Financial Performance (Half Year results for the six months ended 30th June 2019)

Revenue for the period was reported at $4,788 million, a decline of 2.6 per cent from the H1 FY18 like-for-like figure of $4,916 million. This stability flowed into strong EBITDA and Operating Profit growth. Adjust EBITDA (excluding the impact of IFRS 16) was reported at $314 million, a surge of 7.2 per cent year on year. This rise was due to the increased upstream oil and gas activities in the energy market and because of the improved Turbine Joint Venture performance in the period. Based on this strong performance and operating growth, the company announced an interim dividend of 11.4c per share, which was up by 1 per cent year on year.

WG Stock Performance

On 5th September 2019, at 10:24 AM GMT while writing, WG shares were trading at GBX 374.40 per share; up by 4.73 per cent or GBX 16.90 as compared to the closing price level of the previous day which was GBX 357.5. The company’s M-cap (market capitalisation) was recorded at £2436.5 million at the time of writing. The volume of the shares traded in the market was 574,710 at the time of writing.

Outlook – Based on stable financial performance as well as the US$ 9.2 billion Order Book and an increase in the downstream activity in the second half the company expects to match the guidance and has kept the annual outlook unchanged.

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