External broker reports(aggregated public sources), Morrison Securities

Morrison Securities

External broker reports(aggregated public sources)

Morrison Securities Pty Limited specialise in providing white labelled trading solutions to Broker Dealers where we provide wholesale stock broking solutions to AFSL holders such as financial planners, financial advisors, banks, building societies and trading educators. Content available is external broker reports authored by a third party outside the Smartkarma network and has been aggregated by an online aggregator through publicly available sources and is displayed by Smartkarma in this format for user's convenience and general informational purposes only. Content does not constitute investment or financial advice and Smartkarma makes no representation or warranty regarding its accuracy or contents. Original third party author retains all copyright and other proprietary rights in the content. Access or use of third party links not controlled by Smartkarma are at the user's own risk.

Equity Bottom-Up

<div><div><div><div><ul><li>DroneShield (DRO) reported a largely pre-released CY24 result, delivering 6% year-on-year revenue growth to $57.5 million.</li><li>However, operational scaling presented hurdles, with EBITDA of -$8.6 million, slightly missing our forecast of -$8.0 million due to higher-than-expected operating expenses.</li><li>A $5.5 million income tax benefit helped narrow the net loss to - $1.3 million, outperforming our previous estimate of -$4.8 million. </li></ul></div></div></div></div><p><em>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.</em></p>

DroneShield (DRO) reported a largely pre-released CY24 result, delivering 6% year-on-year revenue growth to $57.5 million.However, operational scaling presented hurdles, with EBITDA of -$8.6 million, slightly missing our forecast of -$8.0 million due to higher-than-expected operating expenses.A $5.5 million income tax benefit helped narrow the net loss to - $1.3 million, outperforming our previous estimate of -$4.8 million. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

DroneShield (DRO) Delivers Solid Revenue Growth but Faces Scaling Challenges

<ul><li>DroneShield (DRO) delivered a largely pre-released result for CY24, with a 6% YoY revenue growth to $57.5 million, but faced challenges in scaling operations.</li><li>EBITDA of -$8.6 million missed our estimate (-$8.0 million) due to higher operating expenses.</li><li>The better-than-expected net loss of -$1.3 million was due to a $5.5 million income tax benefit, leading to a more favourable outcome compared to our previous projection of -$4.8 million. </li></ul><p><em>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.</em></p>

DroneShield (DRO) delivered a largely pre-released result for CY24, with a 6% YoY revenue growth to $57.5 million, but faced challenges in scaling operations.EBITDA of -$8.6 million missed our estimate (-$8.0 million) due to higher operating expenses.The better-than-expected net loss of -$1.3 million was due to a $5.5 million income tax benefit, leading to a more favourable outcome compared to our previous projection of -$4.8 million. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

DRO Annual Report 2024: Scaling Innovation and Global Expansion in Counter-Drone Technology

Pan-Asia Index Rebalances/ Events/ Delta One, Periscope Analytics

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

Periscope Analytics

Periscope Analytics focuses on event-driven trades across Asia Pacific and provides comprehensive, timely and systematic coverage of index changes to major Asia Pacific indices in a structured manner.

The analysis includes forecasted inclusions and exclusions to all major Asian indices that have significant amount of tracking assets, including estimates of passive buy/sell flow on the stocks. The service also provides commentary and impact of market consultations, ground rule changes, and other events (IPOs, spin-offs, M&A) that could lead to index changes and passive flow.

Periscope Analytics works with multi-strategy hedge funds, proprietary trading firms, stat arb trading groups and long-only investors that invest and trade in the Asia Pacific region with the data being used to trade index rebalances, avoid pre-positioning and passive flow, and to time entry into and exit from stocks.

Event-Driven Trades Across Asia Pacific

Index Rebalance

<ul>
<li>There are 2 changes for the S&amp;P/ASX100 Index, 3 changes for the <a href="https://www.smartkarma.com/entities/s-p-asx-200" target="_blank" data-smartkarma-citation="entities:22901:1" rel="noopener">S&amp;P/ASX 200 (AS51 INDEX)</a> and 16 adds/ 8 deletes for the S&amp;P/ASX300 Index.</li>
<li>The two big surprises are the inclusion of <a href="https://www.smartkarma.com/entities/guzman-y-gomez-limited" target="_blank" data-smartkarma-citation="entities:43656:1" rel="noopener">Guzman Y Gomez (GYG AU)</a> and <a href="https://www.smartkarma.com/entities/yancoal-australia-ltd" target="_blank" data-smartkarma-citation="entities:4145:1" rel="noopener">Yancoal Australia (YAL AU)</a> in the <a href="https://www.smartkarma.com/entities/s-p-asx-200" target="_blank" data-smartkarma-citation="entities:22901:1" rel="noopener">S&amp;P/ASX 200 (AS51 INDEX)</a> and S&amp;P/ASX300 Index.</li>
<li>The adds to the indices have outperformed the deletes over the last few months and there could be profit-taking in the next few days.</li>
</ul>


There are 2 changes for the S&amp;P/ASX100 Index, 3 changes for the S&amp;P/ASX 200 (AS51 INDEX) and 16 adds/ 8 deletes for the S&amp;P/ASX300 Index.
The two big surprises are the inclusion of Guzman Y Gomez (GYG AU) and Yancoal Australia (YAL AU) in the S&amp;P/ASX 200 (AS51 INDEX) and S&amp;P/ASX300 Index.
The adds to the indices have outperformed the deletes over the last few months and there could be profit-taking in the next few days.


S&P/​​​​ASX Index Rebalance (Sep 2024): Two Big Surprises; Positioning Is Mixed

External broker reports(aggregated public sources), Bell Potter Securities

Bell Potter

Bell Potter Securities

Bell Potter Securities is a leading Australian stockbroking, investment and financial advisory firm that provides a comprehensive offering of financial services to individuals, institutions and corporations. Content available is external broker reports authored by a third party outside the Smartkarma network and has been aggregated by an online aggregator through publicly available sources and is displayed by Smartkarma in this format for user's convenience and general informational purposes only. Content does not constitute investment or financial advice and Smartkarma makes no representation or warranty regarding its accuracy or contents. Original third party author retains all copyright and other proprietary rights in the content. Access or use of third party links not controlled by Smartkarma are at the user's own risk.

<ul><li>Bottom-line earnings miss to BPeDRO recorded revenue from customers of $23.3m (+106% vs pcp) during the 1H24, -3% below BP estimates.</li><li>Gross margin (71.6%) was largely in-line with BPe however opex (-$22.7m) was materially greater than our estimates (-$18.5m) and was the primary reason for the miss at the bottom line.</li><li>This included share-based payment expenses of -$2.7 million, an increase of 207% relative to 1H23 of -$0.8m.</li></ul><p><em>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.</em></p>

Bottom-line earnings miss to BPeDRO recorded revenue from customers of $23.3m (+106% vs pcp) during the 1H24, -3% below BP estimates.Gross margin (71.6%) was largely in-line with BPe however opex (-$22.7m) was materially greater than our estimates (-$18.5m) and was the primary reason for the miss at the bottom line.This included share-based payment expenses of -$2.7 million, an increase of 207% relative to 1H23 of -$0.8m.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

DroneShield Limited (DRO): A game of two halves

<ul>
<li>With 2 trading days left in the review period, there could be 30 adds/deletes across the S&amp;P/ASX family of indices in September.</li>
<li>Passive trackers will need to trade a lot of stock in the forecast changes, with the impact being especially large for the changes to the <a href="https://www.smartkarma.com/entities/s-p-asx-200" target="_blank" data-smartkarma-citation="entities:22901:1" rel="noopener">S&amp;P/ASX 200</a> and S&amp;P/ASX 300.</li>
<li>The forecast adds have hugely outperformed the forecast deletes. Borrow recall on the deletes and increased borrow availability on the adds could result in underperformance following announcement of the changes.</li>
</ul>


With 2 trading days left in the review period, there could be 30 adds/deletes across the S&amp;P/ASX family of indices in September.
Passive trackers will need to trade a lot of stock in the forecast changes, with the impact being especially large for the changes to the S&amp;P/ASX 200 and S&amp;P/ASX 300.
The forecast adds have hugely outperformed the forecast deletes. Borrow recall on the deletes and increased borrow availability on the adds could result in underperformance following announcement of the changes.


S&P/​​​​​​​​​ASX Index Rebalance Preview: Review Period Nearly Done; Big Impact Changes

Australia

DroneShield Limited provides drone detection technology. The Company offers analysis, identification, and alerts solutions. DroneShield serves the detention, airport, government, commercial, and infrastructure sectors.

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DroneShield Ltd (DRO AU)

DroneShield (DRO) Delivers Solid Revenue Growth but Faces Scaling Challenges

DroneShield (DRO) reported a largely pre-released CY24 result, delivering 6% year-on-year revenue growth to $57.5 million.

Morrison Securities

DRO Annual Report 2024: Scaling Innovation and Global Expansion in Counter-Drone Technology

DroneShield (DRO) delivered a largely pre-released result for CY24, with a 6% YoY revenue growth to $57.5 million, but faced challenges in scaling...

Morrison Securities

S&P/ASX Index Rebalance (Sep 2024): Two Big Surprises; Positioning Is Mixed

The index rebalances at the close today. Stocks have moved a lot over the last couple of weeks since announcements and some positioning will be...

Brian Freitas

DroneShield Limited (DRO): A game of two halves

Bottom-line earnings miss to BPeDRO recorded revenue from customers of $23.3m (+106% vs pcp) during the 1H24, -3% below BP estimates.

Bell Potter

S&P/ASX Index Rebalance Preview: Review Period Nearly Done; Big Impact Changes

There could be 30 changes for the ASX indices in September with a lot to trade for passive trackers. The adds have outperformed the deletes and...

Brian Freitas

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DroneShield (DRO) Delivers Solid Revenue Growth but Faces Scaling Challenges

DroneShield (DRO) reported a largely pre-released CY24 result, delivering 6% year-on-year revenue growth to $57.5 million.

Morrison Securities

DRO Annual Report 2024: Scaling Innovation and Global Expansion in Counter-Drone Technology

DroneShield (DRO) delivered a largely pre-released result for CY24, with a 6% YoY revenue growth to $57.5 million, but faced challenges in scaling...

Morrison Securities

S&P/​​​​ASX Index Rebalance (Sep 2024): Two Big Surprises; Positioning Is Mixed

The index rebalances at the close today. Stocks have moved a lot over the last couple of weeks since announcements and some positioning will be...

Brian Freitas

DroneShield Limited (DRO): A game of two halves

Bottom-line earnings miss to BPeDRO recorded revenue from customers of $23.3m (+106% vs pcp) during the 1H24, -3% below BP estimates.

Bell Potter

S&P/​​​​​​​​​ASX Index Rebalance Preview: Review Period Nearly Done; Big Impact Changes

There could be 30 changes for the ASX indices in September with a lot to trade for passive trackers. The adds have outperformed the deletes and...

Brian Freitas

S&P/ASX Index Rebalance (Sep 2024): Two Big Surprises; Positioning Is Mixed

S&P/ASX Index Rebalance Preview: Review Period Nearly Done; Big Impact Changes