In today’s briefing:
- Last Week In Event SPACE: Woodside Petroleum, Brambles, Tabcorp, HKBN, Japan
- TOWA (6315): Watch the Order Flow for an Entry Point
Last Week In Event SPACE: Woodside Petroleum, Brambles, Tabcorp, HKBN, Japan
- The downside to Woodside Petroleum (WPL AU) remains, but the reasoned downside is smaller than it was before.
- CVC walks, but it doesn’t stop Brambles Ltd (BXB AU) privatisation speculation.
- If Tabcorp and The Lottery Corp are seen as low volatility growth properties, then the stability of cashflow puts it into rarified air among “growth bias” which has gotten trashed.
TOWA (6315): Watch the Order Flow for an Entry Point
- Management is guiding for single-digit sales and profit growth in FY Mar-23, but new orders fell 39% from Q2 to Q4 of last fiscal year.
- The Book-to-Bill Ratio fell from 1.66 in Q2 to 1.01 in 4Q, but quarterly orders and sales both remained far above the levels recorded in the three years to Sep-21.
- Even if the company does not drop into the red as it did in previous cycles, the downside risk to profits could be 50%.
Before it’s here, it’s on Smartkarma
