Stocks to watch: Mainfreight earnings, FPA capital raising, Sanford

Thursday 28th May 2009

The following stocks may be active on the New Zealand exchange after developments since the close of trading yesterday.

Themes of the day: Finance Minister Bill English is due to deliver his first budget today, with the government anxious to keep a check on debt levels to help underpin the nation’s AA+ credit rating. Shares on Wall Street rose amid concern the flood of new Treasury sales is driving up interest rates. The New Zealand dollar fell to 61.50 U.S. cents. Crude oil rose above US$63 a barrel for the first time in six months after Saudi Arabia’s oil minister said the price could reach US$75.

Fisher Paykel Appliances (NZX: FPA ): The Auckland-based manufacturer jumped 56% to $1.03 yesterday, the biggest gain on the NZX 50, after announcing plans to raise $189 million via a rights issue and the sale of a 20% stake to Haier, China’s biggest manufacturer of home appliances. The deal gives its foothold in the Chinese market and helps repay debt.

Mainfreight (NZX: MFT ): The transport company today posted a 39% gain in full-year revenue to a record $1.27 billion and a profit before one-time items of $40 million, little changed from the year-earlier $40.8 million. The company kept its full-year dividend unchanged at 18.5 cents per share, in line with the previous year. One-time items, including provisions for surplus leases, pushed net profit down to $35.5 million. The shares were unchanged at $4.90 yesterday and have inched up 1.7% this year.

National Property Trust (NZX: NPT ): The property investor yesterday reported a 9.1% decline in the value of its portfolio over the past 12 months to $266.8 million and had unrealised fair value swap losses of $8 million, resulting in a full-year net loss of $21.28 million. Still, distributable earnings had an 11.3% annualised increase to $9.58 million. Distributions in the current year will fall to 4.5 cents a unit from 5.01 cents. The shares rose 6% to 35 cents yesterday.

New Zealand Oil & Gas (NZX: NZ0 ): Crude oil climbed above US$63 a barrel for the first time in six months after Saudi Arabian oil minister Ali al-Naimi predicted a recovery in prices back to US$75 a barrel and amid expectations an Energy Department report tomorrow will show shrinking inventories of gasoline. Crude oil for July delivery climbed 1.6% to US$63.43 a barrel on the New York Mercantile Exchange. NZOG stock rose 2 cents to $1.50 yesterday.

New Zealand Refining (NZX: NZR ): The nation’s only oil refinery processed 6.1 million barrels through March and April, for a processing fee of $50.3 million. The refinery operated at close to full capacity for much of the period, the company said. The average gross refining margin was US$6 a barrel, which rose to US$6.47 from the recovery of capped income generated in the first two months of the year. The shares rose 1.5% to $6.95 yesterday.

Ryman Healthcare (NZX: RYM ): The retirement village operator is performing well in a challenging property market, according to Goldman Sachs JB Were analyst Matt Henry, the ShareChat website reported. Resale prices were flat in the year ended March 31 while average New Zealand house sales fell 9%. Henry has a “hold” rating on the stock. The shares rose 3 cents to $1.63 yesterday and has surged 40% in the past three months.

Sanford (NZX: SAN ): The fish exporter yesterday posted a 26% slide in first-half profit as seafood prices declined amid grim international economic conditions. The company said it is optimistic a recovery is underway, meaning it won’t have to downsize its operations. The shares were unchanged at $5.80 yesterday.

Sealegs Corp. (NZX: SLG ): The manufacturer of amphibious boats reported a 20% increase in full-year operating revenue to $11.5 million. The company had a net loss of $5.8 million, reflecting a one-time cost to cancel an employee share option plan and a write-down of R&D and goodwill. The shares were unchanged at 10.5 cents yesterday.

Seeka Kiwifruit Industries (NZX: SEK ): Profit rose 54% to $3.98 million in the year ended March 31, while sales rose 1% to $107.97 million. The results included $997,000 from the sale of the Berry packhouse. The shares trade infrequently and were at $2.30.

Businesswire.co.nz

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