Weekly | LTR got blockbuster deal of $4.25 bln; DHG, NAN began to rebound
As of the close on Friday,$S&P/ASX 200(XJO.AU)$ closed at 7,156.70 points, down 1.67% in the past 5 days.
During the last 5 trading days, $Liontown Resources Ltd(LTR.AU)$ was up 16.41%; $Telix Pharma(TLX.AU)$ added 6.30%; $Domain Australia(DHG.AU)$ was up 4.49%; $IGO Ltd(IGO.AU)$ rose 3.40%; and $Nanosonics(NAN.AU)$ increased 3.37%.
1. $Liontown Resources Ltd(LTR.AU)$ & $Albemarle(ALB)$: the largest deal in lithium-mining industry
This week, Albemarle made a new offer for Australia’s Liontown Resources that values it at $4.25 billion. This deal would be one of the largest in the lithium-mining industry.
This latest proposal, valued at AUD 3 per share in cash, is its final offer. As of Friday, LTR closed at AUD 3.05, above the proposed value.
Liontown will allow Albemarle exclusive access to its financial data and intends to recommend the proposal to shareholders if no competing bid emerges.
Liontown Resources is developing one of the world's largest high-grade lithium deposits. The global lithium market's value has risen from $1.6 billion in 2015 to approximately $48 billion in sales last year.
This acquisition would bolster Albemarle's position in Australia and enable it to meet the growing lithium demand driven by electric vehicles and clean energy technologies.
2. $Telix Pharma(TLX.AU)$ to showcase advancements in theranostic programs at EANM congress; PT $14
Telix Pharmaceuticals is showcasing its medical programs at the 36th Annual Congress of the European Association of Nuclear Medicine (EANM) in Vienna from September 9 to 13, 2023.
Notable presentations cover data from Telix's significant Phase III ZIRCON study, a sponsored event on personalized diagnostics for urological cancers, updates on the Phase III ProstACT GLOBAL study, and discussions on artificial intelligence (AI) for prostate cancer imaging.
Telix will also discuss a preclinical assessment of a therapy for carbonic anhydrase IX-targeted lutetium-177 combined with immune checkpoint inhibition.
Bell Potter analysts have maintained a buy rating and a $14.00 price target for Telix Pharmaceuticals, expressing optimism about the company's prospects and anticipating a 24% revenue increase in the second half of the year compared to the first half.
3. $Domain Australia(DHG.AU)$ rebounds after the plunge on earnings
Domain Holdings Australia Limited engages in the real estate media and technology services business in Australia.
In August, DHG released a weak-than-expected earnings and fell 7% on the day of release.
In fiscal 2023, lower listing volume and increased costs led to a decline in EBITDA margin to 31% from 36% the previous year.
Adjusted EBITDA fell by 13% to AUD 109 million, resulting in adjusted earnings per share of AUD 0.05, down from AUD 0.09 in fiscal 2022.
However, the stock began to rebound after two days of plunge.
Plus, tt has a healthy balance sheet.
Domain Holdings Australia had AU$219.3 million in debt, which is similar to the previous year.
The company has a cash reserve of AU$33.5 million, resulting in a net debt of about AU$185.9 million.
Short-term liabilities amount to AU$53.0 million, while long-term liabilities total AU$334.9 million.
4. $IGO Ltd(IGO.AU)$ reported strong earnings and 640% increase in dividend
IGO Limited shows good momentum after its strong earnings on 31st Aug.
Revenue of $1.02 billion, up 13% from FY22
Net profit after tax (NPAT) of $549 million, up 66% year on year
Underlying NPAT up 278% from FY22 to $1.53 billion
Record underlying earnings before interest, taxes, depreciation, and amortization (EBITDA) of $1.99 billion, up 177% year on year
Final fully franked dividend of 44 cents per share plus a special dividend of 16 cents per share for a full-year payout of 74 cents per share, up 640% from FY22
The company attributed its record earnings to the success of its investment in the lithium joint venture, Tianqi Lithium Energy Australian Limited (TLEA).
Looking ahead, the company aims to create shareholder value in FY24 through various initiatives, including expanding Greenbushes, ramping up lithium hydroxide production, and optimizing value from Western Areas assets.
5. $Nanosonics(NAN.AU)$ also began to recover after sudden plunge due to earnings
Nanosonics Limited, together with its subsidiaries, operates as an infection prevention company in Australia and internationally.
Nanosonics reported its earnings results for the full year ending June 30, 2023. The stock price fell nearly 15% after the earnings and began to move sideways since then.
Here are the key financial highlights:
Sales: AUD 165.99 million, compared to AUD 120.32 million in the previous year.
Net Income: AUD 19.88 million, a substantial increase from AUD 3.74 million in the prior year.
Additionally, the company reported earnings per share from continuing operations:
Basic Earnings Per Share (EPS): AUD 0.066, up from AUD 0.0124 in the previous year.
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