Daily NZX update, Friday, November 8, 2024

Here are the key things you need to know about in the NZX markets over the past 24 hours. Changes are as at 3:00 pm and may change when the market closes at 4:45 pm.

WHAT THE NZX50 INDEX IS DOINGThe S&P/NZX 50 Index surged +1.3% today, driving its monthly return to +1.5% and marking a 14.2% annual increase. 

THE MAIN GAINERSTo close out the trading week, 48 stocks posted gains. Leading the pack was The Warehouse Group (WHS, #48), which rose 3.9%, bringing its five-day increase to +1%, although it remains down -41% year-on-year. Chorus (CNU, #13) followed closely, climbing +3.5% on the day and boosting its annual return to +20.4%. EBOS Group (EBO, #7) posted a solid +2.5% gain, though it remains down -0.2% year-on-year. Lastly, Goodman Property Trust (GMT, #15) also added +2.5%, matching its year-on-year performance figure.

THE MAIN DECLINERSToday saw just 27 decliners across the equity market. Leading the losses was NZX (NZX, #43), which dropped -2.0%, though the stock has surged +8% over the past five days, pushing its impressive year-on-year gain to +44%. Fletcher Building (FBU, #17) fell +1.9% today but remains up +6.4% for the week, though it has declined -27.8% compared to this time last year. Turners Automotive Group (TRA, #46) slipped -1.3%, yet holds an annual gain of +8%. Finally, Serko (SKO, #44) decreased by -1.3%, bringing its share price to an +8.9% decline year-on-year.

SMARTSHARES EFTs 

KEY ANNOUNCEMENTSProperty for Industry Limited (PFI, #27) declared a first quarter FY25 cash dividend of 2.00 cents per share, aligning with their ongoing growth strategy. The dividend includes imputation credits of 0.37 cents per share, with an additional supplementary dividend of 0.17 cents per share for non-resident investors. Key dates include a record date of 15 November 2024 and a payment date of 26 November 2024. Notably, the dividend reinvestment scheme will not apply this quarter. Looking ahead, the PFI Board has reaffirmed guidance for FY25 cash dividends of 8.3 to 8.5 cents per share, marking a potential 2.4% increase over the annualised FY24 distribution.

The Warehouse Group (WHS, #48) reported Q1 FY25 sales of $668.0 mln, down 2.5% compared to the same period last year, but improving on the 5.9% decline from Q4 FY24. Same-store sales fell 2.0%, while online sales dropped 12.9%, comprising 6.3% of total sales as the Group continues streamlining third-party offerings. Average retail prices fell 7.9% year-on-year, but unit sales rose 6.4% The Warehouse posted sales of $386.3 mln, a 2.0% decline with a slight recovery from Q4. Noel Leeming recorded sales of $229.1 mln, down 2.1%, supported by commercial performance amid weak demand for discretionary goods. Warehouse Stationery sales decreased 6.8%, impacted by a subdued small-medium business sector.

CEO John Journee highlighted positive responses to new product lines but acknowledged ongoing economic challenges. The Group remains focused on improving product value and navigating a competitive landscape as Christmas approaches, with turnaround efforts continuing.

Manawa Energy (MNW, #22) posted a $3.3 mln loss in H1 FY25, down from a $55.9 mln profit in H1 FY24, driven by low hydro inflows, high costs, and a $23.0 mln fair value loss. EBITDAF fell by $34.2 mln to $43.6 mln. Hydro production volumes were 17% lower, and a fully imputed 4.0 cents per share interim dividend will be paid on 6 December 2024.

Key achievements include major asset refurbishments and progress on new development projects, with two initiatives added to the Fast Track Approvals Bill. FY25 EBITDAF guidance remains $95 - $115 mln, with Manawa focusing on debt recovery and strategic growth.

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