SCG reported 1H16 NPAT of $1.15b on $0.116 cps up 2%+ on the same time last year. FY17 forecast growth of 3% or $0.23 cps places the stock on a forward yield into FY17 of 4.4% on a 90% payout ratio.
Potential for added growth from the development pipeline into FY17 and FY18 along with low interest rates underpin SCG. The stock is close to full value and a sideways consolidation is the most likely price action. Buy at $5.00 and sell at $5.45
Author: Leon Hinde
Leon has been working in the financial services industry for 18 years in management and advisory roles. Leon has extensive experience in general advice and dealings involving securities and derivative financial products.
PS 146 Securities & Derivatives, ADA 1 & 2 accreditation, Responsible Manager Certificate. Leon is authorised to provide financial product advice and deal with respect to the following financial products:
· Deposit Products
· Interest in managed investment schemes; and
· Government debentures, bonds and stocks