In today’s briefing:
- Lynas (LYC AU): Gina’s Stake Revives MP Materials Merger
- Quiddity Leaderboard ASX Jun 24: A Couple of Intra-Review Changes Likely
- Kinatico Ltd – Q3 NPAT of $0.1m, EBITDA of $0.8m
- State Gas – Completion Commissioning and a Contract
Lynas (LYC AU): Gina’s Stake Revives MP Materials Merger
- Lynas Corp Ltd (LYC AU) is the proverbial Aussie battler. Post the 2018 general elections, the new Malaysian government put Lynas on notice it may halt it rare-earth operations.
- Since then, Lynas’ Malaysian facility, which cuts into China’s near-monopoly on processing elements for defense/aerospace/EV/electronics industries, has (mostly) operated without substantial disruptions. Profit peaked in FY22; but has since rolled-over.
- Gina Rhinehart’s Hancock has now disclosed a 5.82% stake in Lynas; having disclosed a 5.3% stake in MP Materials (MP US) earlier this month. Lynas confirmed discussions with MPM in February.
Quiddity Leaderboard ASX Jun 24: A Couple of Intra-Review Changes Likely
- In this insight, we take a look at the potential index changes for ASX 200, 100, 50, and 20 in the run-up to the June 2024 index rebal event.
- There are up to two intra-review changes possible between now and the June 2024 review which could triggered by the Silver Lake (SLR AU) and Boral (BLD AU) deals.
- Separately, I see one ASX 20 change and two ASX 100 changes for the regular rebalance in June 2024.
Kinatico Ltd – Q3 NPAT of $0.1m, EBITDA of $0.8m
- Kinatico Ltd (ASX:KYP) is a ‘Know Your People’ regtech company providing workforce compliance monitoring and management technology and services.
- KYP has reported Q3 FY24 EBITDA of $0.8m and NPAT of $0.1m, the first time the company has reported these metrics on a quarterly basis.
- Revenue was $7.0m for the quarter, flat year-on-year but the composition continued to demonstrate the conversion of one-off transactional revenue to recurring software-as-a-service (SaaS) revenue.
State Gas – Completion Commissioning and a Contract
- With completion, commissioning and a contract secured, first gas is just around the bend.
- Critically, with the company on the cusp of first gas, it holds first mover advantage over peer group projects where first gas may well be 2026 or later.
- We assign a NAV of $198m or $0.72/share (down from $0.74/share due to spot gas price adjustment) to GAS against a reference share price of $0.15/share.
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