Australasian Equities

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Australasian Equities

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Speculative

high

Faster Than Planned, Further to Go WiseTech’s (ASX: WTC) acquisition of e2open has made the business larger and increased the size of the total addressable market opportunity. The investment case now rests on proving that early cost savings can restore margins and reignite CargoWise growth. WiseTech sells logistics and supply-chain software. Its main product, CargoWise, helps freight forwarders and logistics providers manage shipping, customs, finance and compliance through one system. Customers pay recurring licence or subscription fees, with revenue rising as they

Telstra

Core

medium

Holding the Line We remain positive on Telstra. The mobile franchise is still growing, pricing remains firm, and cost reductions are supporting margins, while strategic investment is moving past its peak and should improve cash generation over the next few years. The dividend continues to rise, and a further $1 billion share buyback was announced, building on the earlier concluded $1.25 billion programme. Recent share price weakness in Telstra reflects a mix of company-specific and macro concerns. Retail subscriber momentum

South32

Speculative

high

Strong Foundations, Heavy Lifting Ahead South32’s (ASX: S32) FY26 result shows that its retained copper, zinc and silver assets are producing stronger earnings, while the planned aluminium sale should sharpen the portfolio. We don’t believe the market is fully pricing the shift in the business, given our constructive view on commodities. We upgrade to BUY. Underlying earnings rose 55% to US$1.03 billion and underlying EBITDA rose 28% to US$2.46 billion, lifting the operating margin from 26.3% to 31.0%. Higher copper, silver,

St Barbara

Speculative

high

Cash ‘Back’, Production Next St Barbara (ASX: SBM) ended FY26 with A$393 million of cash on hand, plus A$81 million of restricted cash, and no debt. It has declared a fully franked dividend of 5 cents a share, its first since September 2021. The company also flagged a potential share buyback. The stock rallied sharply after the release. The market wasn’t expecting this. Management must have significant confidence that it won’t have to go back to shareholders for more capital as

Collins Foods

Core

medium

Cutting Losses, Doubling Down Collins Foods (ASX: CKF) has started FY27 with a stronger Australian KFC business, improving European sales trends and a simpler KFC-only strategy, giving the group a clearer path to earnings growth. Collins operates KFC restaurants in Australia, Germany and the Netherlands. It earns revenue from food and drink sales at company-operated stores, while shareholder returns depend on customer visits, spending per transaction, restaurant-level profit and the returns generated by opening or acquiring new restaurants. The exit from Taco

SRG Global

Core

medium

A Strong Result, though not all Organic SRG Global (ASX: SRG) finished FY26 ahead of guidance that had already been upgraded in June, and lifted its FY27 outlook. Revenue exceeded $1.6 billion for the first time, work in hand reached a record $5.1 billion, and the balance sheet returned to net cash less than a year after the TAMS acquisition pushed the group into net debt. A fully franked final dividend of 4 cents (+33% YoY) will be paid on 11

GrainCorp

Speculative

high

Higher Grain Prices Revive Volume Upside GrainCorp (ASX: GNC) is one of the ASX’s most direct exposures to the grain leg of the commodities upcycle we see underway. Wheat has risen sharply as Black Sea supply is disrupted, with Chicago futures up strongly from the start of July through late August. GrainCorp earns from receivals – the grain that growers deliver into its network – along with storage, handling, export, processing and marketing, rather than from owning grain itself. What matters

Domino’s Pizza Enterprises

Core

medium

Fewer Orders but Better Economics Domino’s Pizza Enterprises (ASX: DMP) has improved franchisee economics and reduced debt by accepting lower volumes. From a financial point of view, the shift in focus worked. Domino’s cut broad discounting, closed underperforming stores, and reduced operational costs, choosing fewer but more profitable transactions. This strategy lifted underlying EBIT by 1% to A$200.1 million and underlying NPAT by 4% to A$121.6 million, even though network sales fell 6.8% to A$3.87 billion and same-store sales declined 4.1%.

About these archived stock reports

These are archived Fat Prophets equity research stock reports and share analysis. They do not constitute current investment advice, financial product advice, or a recommendation to buy, sell or hold any financial product. They are provided for historical reference only, and reflect the market conditions, company information, forecasts and opinions available at its original publication date. The information may no longer be current or applicable. Past performance is not a reliable indicator of future performance.

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