Here are the key things you need to know about in the NZX markets over the past 24 hours. Changes are as at 3:00 pm and may change when the market closes at 4:45 pm.
WHAT THE NZX50 IS DOING
The NZX50 is down -0.9% from Wednesday putting the index up +0.4% for the month, and up +5.4% for the year-to-date.
THE MAIN GAINERS
There are currently 28 gainers, the biggest from Sky Network (SKT, #46) up +2.5%. SKT is now up +1.5% over the past five days, up +10.6% for the month. Spark (SPK, #7) is next on the mainboard up +2.1%, although since their FY24 results were released have seen a constant decline with their share price down -10% over the last five days putting the company down -28% since the start of the year. KMD brands (KMD, #47) is next up +1.8% followed by Vital Healthcare (VHP, #23) up +1.3%.
THE MAIN DECLINERS
The amount of decliners doubles the gainers list with a total of 58 companies. Heartland Group (HGH, #34) had the biggest fall for the day down -8.5%. HGH released their full-year results today falling short of guidance due to a late increase of provisions in the May-June period. HGH is now down 1.9% over the month, down -39% from this time last year. Gentrack (GTK, #29) is next down -4.3% followed by the NZX (NZX, #43) down -3.7%.
THE KEY ANNOUNCEMENTS
Air New Zealand (AIR, #20) released their annual results today and although the 1H24 results were promising, the company faced some headwinds and engine problems in the tail end showing in the results. Annual profit tumbled to $146 million from $412 million. The company reported a strong 11% increase in passenger revenue of $5.9 billion, but this was offset by the non-fuel operation costs of $225 million which Air New Zealand noted as a "significant drag" on their performance. Chairwoman Theresa Walsh commented on the FY24 results saying; “It’s been a difficult year managing both macroeconomic and operational challenges. I’d like to thank the Air New Zealand whānau, not only for navigating these issues with great skill and manaaki, but also for never losing sight of what the organisation needs to do to be a future-fit airline."
NZ Windfarms (NWF) released their full-year report. NWF had a +178.15% increase in profit from continued operations, their total revenue's now $15.29 million. Chairman Craig Stobo notes the company will continue aiming to efficiently operate their current assets and maximise returns. NWF's next project is still undergoing as the company partnered with Meridian Energy (MEL, #2) this year in order to re-power the Te Rere Hau Windfarm.
NZ Wine maker Delegat Group (DGL) reported their FY24 results today with their sales revenue up +1% to $371.8 million, EBITDA up +7% now $128.5 million. DGL chair Jim Delegat says; "This is a solid result, particularly in the context of current global conditions. Continuing to grow the business and attract more consumers in our key markets is underpinned by the quality of our products, people and brands.” The Board has confirmed a dividend payment of 20 cents per share, paid on the 18th of October.
Arvida Group (ARV, #25) advised that initial orders from the High Court have been received in relation to the scheme of arrangements with with Stonepeak Alps Bidco Limited. By the end of the day Arvida will release the scheme booklet which will include recommendations by the ARV directors, the notice of meeting, and the independent Advisor's report.
THE ANNUAL REPORTS RELEASED
ANALYST COMMENT
Nikko AM investment analyst Tim O’Loan commented on Thursday's Heartland (HGH, #34) result saying; "Despite some positives – reverse mortgages performing well, asset finance standing up to challenging trading conditions and motor finance growth subdued but acceptable – the Heartland result is a miss to market expectations and company guidance, and serves as a proof point to the speed with which the economy has deteriorated over the last few months. While it’s saying the right things around strategy, growth and execution, Heartland’s investment thesis may take a little longer to play out due to the economic backdrop – and it’s noteworthy that the bank is not providing guidance for the next financial year due to increased uncertainty around the economy. Interest rate cuts are needed and will take some time to transmit fully into the economy, so the near term will remain tough for them. We should see improvement beyond early next year as the effect of rates cuts kicks in."
SECTOR HIGHLIGHT
NZX50 Property Sector
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