Man Group Plc (LON: EMG)

Business Overview
Man Group Plc is a financial services company providing portfolio solutions to the clients. The company is an investment management company which actively deploys the latest technologies to keep themselves in a leading position in the growing industry.

Recent News
On 28^th February 2020, the company released that it had appointed Lucinda Bell and Ceci Kurzman as Non-Executive Directors. They had joined the Board with effect from 28^th February 2020.

Financial Highlights – Financial Year 2019

(Source: Preliminary Report, Company Website)

In the fiscal year 2019, the company’s fund under management increased to $117.7 billion as compared to $108.50 billion in FY2018. Net revenue during the period increased to $1,112 million against $913 million in the fiscal year 2018. Adjusted profit before tax was $386 million in FY2019 versus $251 million in FY2018 while statutory profit before tax was $307 million as compared to $278 million in FY2018.

Share Price Performance

Daily Chart as on 19^thMarch 2020, before the market closed (Source: Thomson Reuters)

On March 19, 2020, at the time of writing (before the market close, at 12:07 PM GMT), Man Group Plc shares were trading at GBX 111.30, up by 1.18 per cent against the previous day closing price. Stock's 52 weeks High and Low are GBX 177.10/GBX 84.72. Current dividend yield stood at around 7.40%.

From the technical standpoint, 14 days-Relative Strength Index of the stock is hovering near the oversold zone, which is strengthening the upside move.

Valuation Methodology

Conclusion
The company reported a decent financial performance for the financial year 2019. The company’s top-line performance has improved for the period. The company has recently undergone a corporate reorganisation which would provide greater flexibility in terms of financing the business. The company operates in multiple geographies, which would help them to mitigate the risks faced from a particular location with the profits generated from the other location. The company would be impacted due to the uncertainty created due to the Coronavirus outbreak, as it would result in customer loss and negatively impact the financial performance of the company.

Based on the decent prospects which are supported by valuation done using the above method, we have given a “Buy” recommendation at the current price of GBX 106.60 (as on 19th March 2020 at 11:45 AM GMT) with lower double-digit upside potential based 9.20x NTM Price/Earnings Value (approx.) on FY20E earnings per share (approx.).

Tritax Big Box Reit Plc (LON: BBOX)

Business Overview
Tritax Big Box Reit Plc (LON: BBOX) is a Real Estate Investment Trust (REIT), headquartered in Bristol, United Kingdom. It is the UK’s only REIT focused on investing in and funding the pre-let development of very large logistics facilities, known as Big Boxes, in the country.

Financial Highlights - FY2019

(Source: Preliminary Report, Company Website)

In the fiscal year 2019, the company’s portfolio value increased by 15.2 per cent to GBP 3.94 billion as compared to GBP 3.42 in FY2018. Loan to value during the period increased by 3.1 points to 30.4 per cent. The company’s operating profit in FY2019 was GBP 122.5 million against GBP 113.7 million in FY2018. Adjusted EPS declined by 3.5 per cent to 6.64p in FY2019. The company announced a dividend of 6.85p per share in the fiscal year 2019.

Share Price Performance

Daily Chart as on 19^thMarch 2020, before the market closed (Source: Thomson Reuters)

On March 19, 2020, at the time of writing (before the market close, at 1:00 PM GMT), BBOX shares were trading at GBX 82.70, down by 3.72 against the previous day closing price. Stock's 52 weeks High and Low are GBX 162.60/GBX 79. Current dividend yield stood at around 7.97%.

 From the technical standpoint, 14 days-Relative Strength Index of the stock is hovering near the oversold zone, which is strengthening the upside move.

Valuation Methodology

Conclusion
The company’s financial performance was decent in the financial year 2019. The top-line performance has improved, while the bottom-line performance declined for the period. Tritax Big Box REIT Plc based on its unique business model, focuses on investing in logistics companies in the UK. Also, long-term fundamentals of the market in which the company operates are favourable, as the company is among the beneficiaries from a structural change in shopping habits, as shoppers are shifting from high street shopping to online shopping, which leads to an increase in demand for logistics companies to meet these demands.

Based on the decent growth prospects and the valuation done using the above method, we have given a “Buy” recommendation at the current price of GBX 81 (as on 19th March 2020 at 8:15 AM GMT) with lower double-digit upside potential based on 13.04x NTM P/E (approx.) on FY20E earnings per share (approx.).

Camellia Plc (LON: CAM)

Business Overview
Camellia Plc is a United Kingdom-based international food producer company. The principal activities of its associated undertakings and subsidiary comprise of Engineering, Agriculture, Food Service and Investments.

Recent News
On 6^th March 2020, the company announced that it had appointed Simon Turner and Jonathon Bond as the non-executive director of the Group. They had joined the Group on 6^th March 2020.

Trading Update - FY2019
In the fiscal year 2019, Tea produced was 101mkg (2018: 103.1mkg).  Its avocado crop volumes were approximately 40% lower with average prices have been 140% higher than the prior year. The company expected overall revenue to be approximately GBP 294 million. The Group expected that its profits would be below expectations for the fiscal year 2019.

The Group would announce its final results on 8 April 2020.
Share Price Performance

Daily Chart as on 19^thMarch 2020, before the market closed (Source: Thomson Reuters)

On March 19, 2020, at the time of writing (before the market close, at 10:16 AM GMT), Camellia Plc shares were trading at GBX 6,500, with no change against the previous day closing price. Stock's 52 weeks High and Low are GBX 11,300/GBX 6,250. Current dividend yield stood at around 2.22%.
 
From the technical standpoint, 14 days-Relative Strength Index of the stock is hovering near the oversold zone, which is strengthening the upside move.

Valuation Methodology


Conclusion
Despite the unfavourable effect of the performance of Agriculture division, the performance from the businesses in Food Service and Engineering division, together with an enhanced result from the associate (BF&M) resulted in the acceleration of EPS. The company’s financial performance remains robust, with substantial net cash, and have the resources to accomplish the development plans in line with the company’s strategy. In Kenya, the 10Ha trial of blueberries at Kakuzi is well-positioned. Soon, the company expect the first harvest. In Tanzania, the company maintain to make growth with the registration of the land purchase.

Based on the decent growth prospects and the valuation done using the above method, we have given a “Speculative Buy” recommendation at the current price of GBX 6,500 (as on 19th March 2020 at 10:16 AM GMT) with lower double-digit upside potential based on 4.01x NTM EV/EBITDA (approx.) on FY20E EBITDA (approx.).
 
*All forecasted figures and peer information have been taken from Thomson Reuters.
*1 USD converted to GBP at 0.86.

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