Australian Market Trading Day Wrap 15 February 2017

SUNSET STRIP

***SALES COMMENTARY > Blue Ocean Equities Pty Ltd and associates may hold shares in the stocks mentioned in this email and this position may change at any time without notice***

INVESTMENT MOTTO: “Life is all about cycles. You evolve with the cycle or it runs over you.” MARKET SNAPSHOT AND INTRADAY S&P 200 CHART

COUNTRY LAST % CHANGE COM/CURR/YIELD LAST % CHANGE NZ 7180.03 0.41 SPTGLD 1226.00 -0.20 5809.10 0.94 AUDUSD 0.7674 0.14 JAPAN 19458.93 1.14 NZDAUD 0.9352 -0.04 SOUTH KOREA 2083.80 0.44 GBPAUD 1.6247 -0.14 SINGAPORE 0.00 0.00 EURAUD 1.3788 -0.13 CHINA 3234.07 0.50 EURUSD 1.0581 0.01 HONG KONG 24036.70 1.41 USDJPY 114.3840 0.10 FRANCE 4895.82 0.16 DXY 101.22 0.00 UK 7268.56 -0.14 US-DOWJON 20504.41 0.45 US BOND10 2.4771 1.85 US-NASDAQ 5782.57 0.32 US BOND30 3.0717 1.41 US-SP500 2337.58 0.40 AUS BOND10 2.7885 1.86 CHART OF THE DAY:

US 10 Year Bond Yield > Decade long down trend is broken and the next level up is 3%. Geopolitical unrest, global trade worries, protectionism, US tax cut stimulus and recovering US economy will continue to support higher US interest rates in 2017. US Fed update overnight confirms the view that we are going to get market expected two rate rises with potential of more in 2017. Probability of rate rise in March FOMC meeting continues to climb….now at 36%. The rising US yields will drag Aussie yields higher as Australia needs to attract capital and deliver premium yield to remain competitive.

USBON.IR@IR: 11:26:03: 0.0248 MA (USBON.IR@IR): 11:26:03: 52 0.0191, 26 0.0212, 13 0.0245

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MARKET COMMENTARY:

1. Local market had a cracker day on the back of the banks as US rate cycle optimism moved higher after Fed chair talked it up.

2. Local market index starting to look stretched once again despite pricing in the PE premium for yield. 1 Technically the market is making the double top….i.e. Dec high just above 5800. The two key sectors are Page

Mathan Somasundaram > [email protected] Sales Commentary Alex Balzuhn > [email protected] Australian Market Trading Day Wrap 15 February 2017

priced on US rate cycle and China commodity prices. The commodity prices are likely to remain robust even with a pullback while the US interest rate cycle unlikely to deliver substantial growth for Banks as RBA sits on its hands. 3. US Fed updates are in play for the next month (1) Chair Janet Yellen continues her Semi-annual Monetary Policy Report to the Congress tonight (2) Minutes from last month’s FOMC meeting will be released on the 22nd (3) FOMC’s next meeting on 14/15th March. 4. China inflation continues its move back up while stockpile starts to ask questions on Iron Ore and Coal demand remaining at current levels. 5. US economy got more ticks from Fed chair Yellen while corporate capex outlook remains weak and raises questions about future growth. 6. US politics ran into risk territory with resignations and court challenges. 7. Market optimism is reaching far for growth…Apple is starting to price in potential Augmented Reality feature into the next iPhone in late 2017. 8. US rate cycle is getting pushed up after Fed chair update…that will push up USD as well as drag all global yields higher. 9. Japanese economy continues to struggle with demographic issues in the labor market…

10. Chinese middle class needs are changing…

INTERESTING MOVES OF THE DAY: (1) BLD (+6%) on solid result showing growth in US and (2) CPU (+5%) on strong constant currency growth and US rate cycle (3) TWE (+4%) on new substantial shareholder

(4) DMP (-14%) on slowing sales momentum and franchise issues despite outlook upgrade (5) PRY (-12%) on weak surprise result on regulatory uncertainty 2 (6) IFL (-8%) on weak result despite strong markets Page

Mathan Somasundaram > [email protected] Sales Commentary Alex Balzuhn > [email protected] Australian Market Trading Day Wrap 15 February 2017

TOSH’S TIPS: Power (LPI, N/R, +3.95%) has just confirmed new high grade lithium brine discovery to 354m! This changes LPI from a high grade small resource to a high grade large resource in my opinion… This is now a company that sits at the base of the cost curve, has one of the highest grades and a growing resource… New Chairman Dave Hannon also a great addition to the team… Resource update to come will be a +VE catalyst for LPI…

Elders (ELD, BUY, +0.49%) Australia's total winter crop production likely rose 49% in the year to Mar. 31, 2017, to 58.9 million metric tons due to higher yields, says the Australian Bureau of

Agricultural and Resource Economics and Sciences in its quarterly outlook published Tuesday. Acting Abares Executive Director Peter Gooday says this estimate represents a 12% upward revision to the December 2016 forecast. More volume is a good thing for farmers and for the companies that supply them…. +VE Elders… We currently forecast $60m EBIT for ELD but who is to say with current conditions that they won’t hit the top end of their range of $55 - $65m which would see the stock worth $5.50+

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Mathan Somasundaram > [email protected] Sales Commentary Alex Balzuhn > [email protected] Australian Market Trading Day Wrap 15 February 2017

Rhipe (RHP, BUY, +8.89%) is a stock whose share price confuses me, off 50% since they last reported. I look at this business in a very simple manner. Microsoft, amongst other cloud providers, continues to say that one of their key growth drivers is their cloud business… Rhipe has a market leading cloud licensing channel in South East Asia (SEA) with the major global software vendors. The growing high quality earnings stream has reached the tipping point of profitability and strong cash flow generation, with a maiden dividend expected for FY17. We have the company in here on Friday for lunch and I would recommend that you join us to hear this story… http://www.theaustralian.com.au/business/technology/microsoft-scott-guthrie-see-blue--in-cloud-offering/news- story/f427610902a9c8a8982a08c1af754802

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Mathan Somasundaram > [email protected] Sales Commentary Alex Balzuhn > [email protected] Australian Market Trading Day Wrap 15 February 2017

China demand for Aussie products (BWX, BUY, -1.42%) (A2M, N/R)… A2 Milk result just out. For those that were worried about Chinese demand for Aussie products (milk, skincare, etc) you can see below that A2’s China sales grew by 348%. Obviously off a low base but a base broadly similar to what BWX would generate selling into China.

STOCKS AND SECTORS IN THE MEDIA TODAY: 1. a2 Milk (A2M, -2.48%) > It's a result that will make Bellamy's shareholders wince. -based infant formula and milk producer a2 Milk Company reported that first-half profit nearly quadrupled to $NZ39.4 million ($36.8 million) on surging sales in Australia and China. A year ago, interim net profit was just $10.1 million. In fact, the interim profit is more than its entire profit in 2016. Unlike Bellamy's, which has blamed regulatory changes in China for pummelling its sales and profit, a2 said revenue from the Chinese market soared 348 per cent. The company gained market share in Australia and China. A2 promotes its products by highlighting they are free of the a1 protein, which it claims can cause digestion issues for some consumers. Its products only contain the a2 beta casein protein. A2 Australia & New Zealand chief executive Peter Nathan said there was a lack of appreciation for the Chinese infant formula market, which he said was one of the most complex in the world. "If you get it right it is a very rewarding experience," Mr Nathan said. "There are very few success stories." 2. American Stock Transfer and Trust Company > Pacific Equity Partners has pulled the sale of its longest held asset, American Stock Transfer and Trust Company. With interest rates on the way up and bids from interested parties not reflecting PEP's view of the world, it is understood Australia's largest private equity firm pulled the asset from sale two months ago and has decided to retain the company. What that means for the longer term is less certain. PEP bought AST in May 2008 and it has proved to be one of its more challenging investments of recent years. It's big, heavily reliant on financial markets and not something that appeals to a big universe of potential buyers. It's understood PEP has recently told its own investors that it is pretty upbeat about AST's outlook in the post-Trump world of rising interest rates and a management team that it reckons is doing a great job. 3. AMP (AMP, +0.38%) > AMP, the nation's largest diversified financial conglomerate, is slamming the brakes on some investor property lending for the second time in 18 months because of concerns it is about to break a regulatory limit. AMP Bank is also attempting to cut back on new interest-only applications because of its "responsibility to protect customers and shareholders from what can be a higher-rish mortgage strategy". Regulators and Reserve Bank of Australia are increasingly concerned about interest-only loans because of fears

some borrowers might not have a strategy to repay the principal and because of their vulnerability to rate rises.

AMP is also worried about a surge in investor loan refinancing applications from borrowers rejected by 5 of Australia, the nation's biggest lender, and its subsidiary, BankWest, which last week cut Page

Mathan Somasundaram > [email protected] Sales Commentary Alex Balzuhn > [email protected] Australian Market Trading Day Wrap 15 February 2017

back on some lending. "This is in response to recent changes in consumer behaviour, competitor activity and regulatory obligations," a bank spokesman said. 4. Aveo (AOG, -2.35%) > Aveo has posted an 82 per cent jump in statutory profit for the first half to $121.2 million and an 18 per cent rise in underlying net profit after tax to $53.9 million. The owner of retirement accomodation said retirement units sold in the period was a record 621. EBITDA from its retirement portfolio rose 57 per cent to $45.7 million. The company has maintained its full year guidance of underlying EPS of 18.3c per stapled security, up 7.6 per cent on a year ago, along with its full year distribution of 9cps, up 13 per cent on FY16. 5. Aventus Retail Property Fund (AVN, -1.29%) > Homemaker centre owner the Aventus Retail Property Fund, founded by retail king Brett Blundy and Darren Holland, has delivered on guidance, reporting funds from operations of $34.6 million for the six months to December. Vacancy across its $1.3 billion portfolio of 20 centres remained low at 2 per cent as Aventus continued to diversify its tenant base with yields tightening to 7.4 per cent from 7.53 per cent. Aventus maintained its guidance of FFO per unit of 17.5 to 18 cents per unit and a distribution of 15.8 to 16.2 cents per unit. 6. (BLD, +6.12%) > Boral chief executive Mike Kane says the Australian housing market is the "gift that keeps on giving" as the company posted a 12.3 per cent rise in first-half bottomline net profit after tax. Mr Kane predicted residential construction, which is increasingly dominated by multi-level apartment building, would stay at strong levels for at least the next two years. Boral has been a beneficiary of the strong levels of residential construction in the eastern states which has helped to offset a drop in demand for products like concrete as large LNG projects in northern Australia, and the Barangaroo project in are finished. The Western Australian economy also remains weak after the end of the mining boom. Mr Kane said there had been a string of forecasters who had repeatedly predicted a housing slump, but he expected residential construction to remain at strong levels. "Housing in Australia is the gift that keeps on giving," he said on Wednesday. 7. BHP Billiton (BHP, +1.26%) > Striking workers at Chile's massive Escondida copper mine have accepted a government invitation to try to resume dialogue with mine operator BHP Billiton, the union and government said on Tuesday. A BHP spokeswoman said the company also had received the government invitation and was still evaluating it. Carlos Allendes, leader of the 2500-strong member union that has been on strike since Thursday, said it had received an invitation from the government's labour directorate and agreed to meet on Wednesday. The meeting is not a return to mediation but an attempt to agree to return to the negotiating table, Allendes said. News of a possible path to resolution of the conflict was weighing on the copper price, traders said. Expectations of an extended stoppage at the world's biggest copper mine have helped drive the copper price to over 20-month highs. 8. Commonwealth Bank of Australia (CBA, +2.30%) > Commonwealth Bank of Australia has reported a record interim cash profit of $4.89 billion, up 2 per cent, driven by stronger growth in home lending and fees and a benign environment for bad debts. The result was welcomed by the market, with CBA shares rising by 2.2 per cent to $84.43 by 11:00am AEST, a stronger performance than the other big banks. Higher deposit and wholesale funding costs pressured the net interest margin, which was down 4 basis points to 2.11 per cent. In a move that will support its margin and is aimed at slowing down the rate of investor loan growth in the face of regulatory pressures, CBA has also announced increases to its interest rates for interest-only investor borrowers, which will rise by 12 basis points from April 3. The cash profit number was just ahead of analyst expectations, as was the interim dividend, up 1 per cent to $1.99 per share (the market was expecting it to be held flat) representing a payout ratio of 70 per cent of profits. 9. (CPU, +4.86%) > Australian stock transfer company Computershare said its net profit in the six months ended December 31 jumped 78.2 per cent to $150.15 million. Revenue climbed 7 per cent to $999.12 million, the company said in a statement to the stock exchange. Computershare said it would pay a partially franked 17c dividend on March 22 to shareholders of record on February 27. The company is staying focused on its burgeoning mortgage servicing business as it reports a Management revenue jump of almost 7 per cent to edge above $US1 billion. At 1220pm AEDT on Wednesday, Computershare's shares were up 5.74 per cent to $13.70. A strong $US and slowdown in key segments last year hurt the software company but its full-year results still pleased investors. 10. CSL (CSL, +2.90%) > Paul Perreault, chief executive of global blood products giant CSL, isn't fretting about US President Donald Trump's plans to crack down on pharmaceuticals pricing but he sees benefits in Mr Trump's plans to cut the US company tax rate. Unveiling a 12 per cent increase in net profit to $US806 million ($1.06 billion) for the half year to 31 December, Mr Perreault said CSL's haemophilia treatments, immune system therapies and 'flu vaccinations are life-saving products with little scope for profiteering. As well, only some of CSL's products are subject to the US system for over 65s, where the government has most leverage. "There will be changes and I don't know exactly what they are but we are tracking it and we'll respond in due course to whatever happens," he said. But Mr Trump's plans to slash company taxes "will benefit anybody who is doing business in the US", Mr Perreault said. Nearly half the company's sales are derived from the US, and about

10 per cent from Australia. 6 Page

Mathan Somasundaram > [email protected] Sales Commentary Alex Balzuhn > [email protected] Australian Market Trading Day Wrap 15 February 2017

11. China and Iron Ore > China's iron ore futures rose for a sixth session in a row, hitting their highest in more than three years, amid firm steel demand in the world's top consumer and tighter supply driven by Beijing's campaign against smog. "China's positive steel outlook is driven by ongoing supply tightness and sustained demand growth," Argonaut Securities analyst Helen Lau said in a note. Lau said some Chinese steel mills in Hebei, Beijing and Tianjin have received orders from local governments to suspend steel production from the second half of February to the first half of March. The most-traded iron ore on the Dalian Commodity Exchange rose as far as 716 yuan ($US104) a tonne, its strongest since October 2013. It closed up 1.7 per cent at 712 yuan. On the Shanghai Futures Exchange, rebar closed 1.3 per cent higher at 3442 yuan a tonne. It also marked the sixth straight day of increase for the construction steel product, which touched 3450 yuan earlier, near Monday's two- month peak. 12. Property Group (DXS, +0.00%) > The $9 billion office landlord DEXUS Property Group has upgraded its market guidance after significantly reducing its cost of funding, and achieving success on leasing and rising property values. The group, which delivered a a net profit after tax of $716 million for the December half, down 10.2 per cent on the previous year, now expects its underlying funds from operations per security to hit about 4 per cent, up from the previous guidance of between 3 to 3.5 per cent. Growth in FFO per security to has also increased to 1 per cent from expectations of no growth. "While geopolitical uncertainty is expected to continue to influence business confidence in domestic and international markets throughout the year, DEXUS is well positioned to deliver strong results for the 2017 financial year," DEXUS chief executive Darren Steinberg said. The group reported increased underlying funds from operations for the half year of $287.7 million, up $27.1 million, or 10.4 per cent on the previous corresponding period a result, which was slightly ahead of some analyst’s forecasts. 13. Domino's Pizza Enterprises (DMP, -14.36%) > Domino's Pizza Enterprises chief executive Don Meij has vowed to stamp out corrupt franchisees, acknowledging that reports about wages fraud in Australia could damage future growth. Unveiling weaker than expected first-half profits, Mr Meij revealed that Domino's had recovered $4.7 million in unpaid wages and superannuation from Australian franchisees after conducting 456 spot checks and 154 audits of franchisees and store managers over the last three years. "This can sound like a large number (but) this represents 0.8 per cent of the labour costs of the franchise network - the majority of our franchise owners are doing the right thing," Mr Meij said on Wednesday. "It's rightfully so that shareholders would be so interested in this because the sustainability and the profitability of our franchisees is fundamental to the growth strategy of Domino's," he said. Analysts and investors fear the scandal may affect Domino's ability to attract new franchisees and convince existing franchisees to open new stores, crimping future growth. 14. GPT Group (GPT, +0.00%) > GPT Group expects some further easing in specialty retail sales following a year in which it had to deal with 16 tenants going into administration. The group, which reported overall retail sale growth in the year to December of 3.2 per cent, reported a moderation in specialties sales, up only 2.6 per cent. Discount department stores showed a continuing decline in sales growth, down 2 per cent. Dick Smith, Payless Shoes, Marcs, Pumpkin Patch, All Phones, Australian Geographic, Laura Ashley and Pie Face were among the retailers for whom GPT had to find replacements for 65 separate tenancies in its $5.3 billion portfolio of shopping centres. "The wealth effect realised through a strong housing market has subdued in certain regions, whilst nationally wage growth remains low," GPT head of retail Vanessa Orth said. 15. Hunter Hall International (HHL, +5.37%) > Ethical funds manager Hunter Hall International's first-half profit dropped 69 per cent to $1.4 million after it failed to earn any performance fees during the period. It will pay an interim dividend of 4¢ a share, fully franked, and funds under management were $961 million as of February 13 down from $970 million at the end of the 2016. Hunter Hall donates 5 per cent of pre-tax profit to charity and maintained that tradition with a $231,000 charitable allocation. The company said profit in the current half will be impacted by up to $2.5 million in costs and payments to secure its staff, and lower average funds under management will have a negative impact on operating revenue. 16. Ingham (ING, -1.77%) > The nation's biggest chicken producer, Ingham's, has suffered a 54 per cent drop in first half net profit due to one-off costs associated with last year's initial public offering as well as restructuring and relocation expenses. Net profit was $9 million compared to $20 million in the previous corresponding period. Revenue rose 4.2 per cent to $1.2 billion. Ingham's declared a 2.6 cent per share fully franked interim dividend. According to analysts, the company's $200 million cost-cutting program, strong management and leading position in the Australian market should help a rise in its share price, if investors take some convincing. 17. IOOF (IFL, -7.71%) > Diversified wealth management company IOOF has seen its net flows climb by 46 per cent to $1.4 billion, as its first-half profit plunged by 45 per cent. The strength of net flows have taken IOOF's fund under administration and advice (FUMA) to $109.4 billion for the six months the 31 December, 2016, an increase of $5.3 billion from the previous corresponding half. "Strong inflows in continuing tough market conditions, and regulatory uncertainty, are testament to the strength and resilience of the business," IOOF managing director Christopher Kelaher said. In a statement to the ASX on Wednesday, IOOF said its statutory net profit after tax dip 45 per cent in the six months to December 31, 2016 to $74.2 million. This is down from $134 million on the

previous corresponding period. The company's underlying net profit after tax was also down 17 per cent to $79.4 7 million for the 2017 half year financial result. Page

Mathan Somasundaram > [email protected] Sales Commentary Alex Balzuhn > [email protected] Australian Market Trading Day Wrap 15 February 2017

18. Infrastructure and US > The federal government has been in discussions with the White House on potential funding models for Donald Trump's $US1 trillion ($1.3 trillion) infrastructure plan by sharing policy experiences in Australia and to help local firms identify opportunities in the United States. The liaison is being led by Ambassador to the US Joe Hockey and has amplified since he held an emergency meeting with Donald Trump's top advisers at the White House this month to smooth over diplomatic relations after the president's heated phone call with Prime Minister Malcolm Turnbull over a refugee resettlement deal. Among the options discussed was replicating Canberra's past incentive payments to states to privatise public assets and reinvest the proceeds in new projects, sources in Washington said. Australia's world-leading public-private partnership model that is used sparingly in the US is also under consideration. 19. Integrated Packaging Group (IPG) > Logical acquirers include UK giant RPC, the acquisitive maker of plastic packaging products, and Berry Plastics and Venus Packaging from the United States. The big guns of Australia's packaging sector are expected to run the ruler over -based stretch film and flexible plastics firm Integrated Packaging Group, which has hired Credit Suisse to explore its exit options. Street Talk understands that private-equity owned IPG turned to Credit Suisse after fielding a number of inbound inquiries from local and offshore trade buyers and private equity firms. The investment bank has also been asked to run the numbers on what IPG could be worth as a listed entity on the ASX boards. IPG is majority owned by Australian private equity investment firm, Advent Private Capital, which invested $50 million in 2011. Sources suggested the business, which was established in 1982, could be worth as much as $200 million. Logical acquirers include UK giants RPC and RKW, and Berry Plastics, Bemis, Sigma Plastics and Sealed Air from . 20. Mount Gibson (MGX, +4.30%) > Miner Mount Gibson has returned to the black in the December half, with a net profit of $22.9 million from a $15.4 million loss a year ago. Consolidated sales revenue dipped slightly to $102 million from $124 million the previous year. CEO Jim Beyer said the result helped "generate strong cashflows" during the period. "It also puts the company in a strong position heading into the second half of the financial year where we are well placed to capitalise on the iron ore price...". "Mount Gibson has strong prospects ahead of it with development now underway at Iron Hill, the outcome of our advanced evaluation of the potential to restart Koolan Island anticipated in the coming weeks, and the financial capacity to act on additional value-creation opportunities that may emerge." It will not pay an interim dividend. 21. Officeworks > Macquarie Capital's equity capital markets team is wasting no time in getting Officeworks ready for a run at the ASX-boards. Street Talk can reveal the investment bank was reaching out to fund managers on Wednesday afternoon, testing interest in an Officeworks non deal roadshow scheduled for March. Officeworks management is expected to front fund managers in Sydney, Melbourne and Asia as part of a strategic review undertaken by parent company . Macquarie is working on the review along with Gresham Partners, and running numbers on a potential sale or sharemarket listing. 22. Orora (ORA, -1.66%) > Orora chief executive Nigel Garrard says the prospect of more power disruptions in has the packaging company considering investing up to $25 million to generate an energy supply for its Gawler glass furnace. Mr Garrard said the experience at Alcoa's smelter in Portland, , which was forced to turn off a potline during a power outage causing molten aluminium to solidify, had the $3 billion packaging company concerned it could be hit with similar damage. Alongside soaring power prices, the state has suffered three significant blackouts since last October, which has plagued the operations of large industrial electricity users. "If there's a supply interruption, the molten glass starts to solidify," he told The Australian Financial Review. "Remelting that is really quite difficult." 23. (ORG, -0.68%) > Woodside chief financial officer Lawrie Tremaine has surprised the market by jumping ship to Origin Energy, where the same role is expected to provide him with a much bigger challenge. While Origin is less than half Woodside's market value, the Sydney-based energy producer and retailer has a more complex structure and still has significant financial tasks ahead of it, including debt reduction and a planned spin-off of its conventional oil and gas business. Announcing the news on Tuesday, Origin chief executive Frank Calabria pointed to Mr Tremaine's experience in oil and gas and described the move as "an important step forward" for the effort to reduce debt, improve returns and deliver on the potential of the $25 billion Australia Pacific LNG project in .The appointment comes at an awkward time for Woodside, with Mr Tremaine due to present the full-year financial results with chief executive Peter Coleman next week. 24. Primary Health Care (PRY, -11.89%) > Primary Health Care has has cut its full-year net profit expectations after a disastrous first-half performance in its medical centre business, where earnings fell 36 per cent due to lower doctor recruitment. Primary's shares tumbled on the news. At 12:45pm, Primary's shares were down 11.6pc, or 45c, at $3.42. Underlying profit after tax from continuing operations fell 5.4 per cent in the six months ended December 31 to $41.9 million from a restated $44.3 million in the year-earlier period. A strong performance in Imaging, an increase in Pathology and savings in interest costs from capital recycling was offset by the poor Medical Centres - Bulk Billing performance. Net profit from continuing operations fell 66 per cent to $21.1 million from a restated $62.1 million. The $2 billion dollar company said amid a subdued environment and uncertainty

over government policy and regulations, it now expects underlying net profit for fiscal 2017 to be in the range of 8 Page

Mathan Somasundaram > [email protected] Sales Commentary Alex Balzuhn > [email protected] Australian Market Trading Day Wrap 15 February 2017

$92 million to $102 million, subject to trading conditions in the remainder of the year and the outcome of any government policy reviews. 25. Rubik Financial (RFL, +45.45%) > ASX-listed financial software company Rubik Financial has recommended a $68 million takeover by Swiss-based technology giant Temenos, which is moving further into the Australian market. The offer has been pitched to Rubik shareholders at $0.1667 a share. The shares were trading up 45.45 per cent to $.16 at 2:30pm AEDT on Wednesday. "By acquiring Rubik, we will be able to provide a complete vertically integrated solution for the Australian banking market, enabling our clients to realise their digital ambitions," Temenos chief executive David Arnott said. "The acquisition will bring us scale and allow us to accelerate our penetration and growth in the Australian market across wealth, core banking and fund administration." The Rubik board has unanimously recommended that its shareholders vote in favour of the deal, in the absence of a superior proposal. 26. Ruralco (RHL, +0.00%) > Stockbroker Wilsons and advisory firm Insight Capital Advisors have kicked off a $65 million equity raising for Ruralco. Ruralco shares went into a trading halt on Wednesday morning as its brokers went about finding support for the offer. Ruralco was seeking to raise $30 million in an institutional placement at $2.66 share and another $35 million in a one-for-six accelerated entitlement offer also at $2.66 a share. The raising was priced at a 10 per cent discount to the theoretical ex-rights price and an 11.5 per cent discount to the five day volume weighted average price. The stock last closed at $3 a share. 27. (SWM, -5.77%) > Seven West Media's first-half profits fell 91 per cent to $12.4 million due to a write down in the value of its Yahoo7 digital business, the sale of several youth magazines and the news channel on Sky News, and exiting the Presto on-demand movie channel. Underlying profit fell 32 per cent to $96 million from the previous first half and revenue rose 1.4 per cent to $905 million. The dividend will be kept at 2¢. Speaking to analysts, investors and journalists on Wednesday morning, chief executive Tim Worner indicated he didn't want to talk about his affair with former executive assistant Amber Harrison. "I have apologised for what did happen," he said, "and we don't wish to give anymore oxygen to things that did not happen. "We have not been distracted… our performance has been unwavering." 28. Sims Metal (SGM, -1.30%) > Sims Metal has swung into the black, delivering a net profit after tax of $80 million for the first half, compared with a $250.1 million loss a year ago. Sales revenue slumped 27.5 per cent to $2.384 billion and EBITDA was $153.3 million, compared with an $11 million loss the previous year. Underlying return of capital was the highest since the start of its 5-year strategic plan, it said. Group CEO Galdino Claro said: "Our earnings growth has been built on the success of our strategic initiatives and the impact of the most recent business resetting actions." "Our current pipeline of initiatives gives us a clear pathway towards our target of 10 per cent return on capital in FY18." The company, one of the world's biggest metal recyclers, will pay a fully franked interim dividend of 20c a share on March 28. 29. (SHL, +0.59%) > Sonic Healthcare has reaffirmed its full-year guidance for 5 per cent earnings growth after a strong first-half performance in its German and Swiss units helped offset its struggling Australian business. Australia's largest pathology operator on Wednesday reported a statutory net profit for the half year ended December 31 of $197 million, up 5 per cent, on revenues which grew just 1 per cent to $2.48 billion. Earnings before interest tax, depreciation and amortisation also edged up 1 per cent to $414 million. CLSA had estimated half-year net profit of $190.7 million, sales of $2.45 billion and EBITDA of $409.4 million. Sonic chief executive Colin Goldschmidt said the company had performed strongly in the half-year, with German and Swiss operations showing particularly strong organic revenue growth and cost management while its biggest revenue segment - Australia - remained burdened by regulatory issues. "Our Australian businesses have continued to suffer from current government policies, despite providing critical health care infrastructure for the country and essential, best in class services for clinicians and patients," he said. 30. (TCL, -0.27%) > Transurban's dominance over Australian toll roads is being challenged by Spain's Cintra and infrastructure investor Plenary, which have created a private company, Netflow, to bid for new road projects including Sydney's $16.8 billion WestConnex motorway. Plenary chief executive Paul Oppenheim said the "shallow pool of competition" for Australian toll roads created opportunities for Netflow. "Whenever we talk to governments around the country there is no question that they would like to see more competition in the concession part of the market," Mr Oppenheim told The Australian Financial Review. Transurban already owns or operates most of Australia's existing toll roads, and is planning to bid for the rights to operate WestConnex, which will connect into its Sydney road network. WestConnex will also be "a key focus" for Netflow, with the company planning to analyse an upcoming tender to build the third stage of the motorway as well as operational concessions for earlier stages, Mr Oppenheim said. 31. Toshiba > Toshiba says it expects to book a ¥712.5 billion ($8.3 billion) writedown in its nuclear power business, citing cost overruns at a US unit and diminishing prospects for its atomic-energy operations. Shigenori Shiga will step down as chairman of the conglomerate. The charge will result in a provisional ¥500 billion loss for the nine months through Decenber 31, the company said in a statement. In December, Toshiba had warned the writedown

could reach several billion dollars, triggering a share decline that has erased more than $US7 billion in market 9 value. As a result of the losses, shareholder equity will drop to negative ¥150 billion for the current year ending in Page

Mathan Somasundaram > [email protected] Sales Commentary Alex Balzuhn > [email protected] Australian Market Trading Day Wrap 15 February 2017

March, Toshiba forecast. The earnings results came after a chaotic afternoon, which began when the company missed its own deadline for announcing earnings. That raised questions over whether the Japanese company has control over its finances, and the shares fell to near 38-week lows. 32. (VCX, +0.34%) > The wave of collapses in the retail sector has hit shopping centre giant Vicinity Centres, where 138 stores have gone into administration across its portfolio in the past year. Vicinity tallied the closures in its 2017 interim result as it booked a 0.4 per cent dip in underlying earnings to $376 million, or 9.5 cents per share. On a comparable basis though, the landlord's underlying earnings were up 4.8 per cent, taking into account it has divested $1.4 billion worth of shopping centres from its portfolio. Net profit for the 2017 first half surged 114 per cent to $908.8 million, boosted by a net valuation gains of $508 million. "Since January 2016, including Dick Smith, we have had a total of 138 stores go into administration across our directly-owned portfolio of 7,900 tenancies, representing just over 1 per cent of gross lettable area," managing director Angus McNaughton said. 33. Villa World (VLW, +1.25%) > House and land developer Villa World has delivered another round of consistent performance for the first half of 2017, achieving a net profit after tax of $19.6 million for the half year to December 31, similar to its previous year net profit of $20.4 million. Villa World's performance also signifies developers with a focus on local owner-occupier products will be insulated from a more "volatile" investor unit market, which had a recent setback from Bankwest and CBA's changes to investor loans and negative gearing. "We're isolated from a bank shutdown and we only have 20 per cent investors ... as far as international buyers go, there are very few," chief executive Craig Treasure told The Australian Financial Review. Villa World's steady sales, despite a low investor base, show there is a lot of demand left in the local owner-occupier market. "The pace of building cannot keep up with demand," Mr Treasure said. Villa World's housing lot settlements were on target – there were 592 settlements in the first half of the year, against 550 in the first half of the previous corresponding year. 34. WAM (WAM, +0.40%) > WAM Research has announced a record interim dividend despite a decline in net profit for the December half. Net profit fell 16.2 per cent to $16.37 million on revenue of $24.5 million, down 31.2 per cent on a year ago. The board has declared a fully-franked dividend of 4.5c a share for the period, up from 4.25c the previous year. It will be paid on April 21. WAM chair Geoff Wilson said: "Our research-driven investment me. "Our research-driven investment methodology, which is focused on identifying undervalued growth companies with a catalyst for revaluation, has again delivered strong results for WAM Research shareholders," he said. 35. Wesfarmers (WES, +2.85%) > Wesfarmers has reported a better-than-expected first half profit and outlined plans for an initial public offering of OfficeWorks, a move that could free up as much as $1.8 billion in cash to invest in Coles and Bunnings. Wesfarmers' interim net profit rose 13.2 per cent to $1.58 billion in the six months ending December as a rebound in profits in new chief-executive elect Rob Scott's 'dogs' - coal, chemicals and fertilisers and industrial and safety - offset weaker earnings at Wesfarmers' biggest business, Coles. Group earnings before interest and tax rose 15.1 per cent in the six months ended December 31 to $2.43 billion, buoyed by a $256 million turnaround in the resources division in the wake of surging coal prices. The net result was well ahead of consensus forecasts of $1.47 billion, while EBIT beat market expectations around $2.34 billion. Group sales rose 4.3 per cent to $34.9 billion, falling slightly short of forecasts around $35.1 billion, with sales slipping 0.2 per cent to $20.05 billion at Coles.

10 Page

Mathan Somasundaram > [email protected] Sales Commentary Alex Balzuhn > [email protected] Australian Market Trading Day Wrap 15 February 2017

AROUND THE GROUNDS:

Source – www.money.cnn.com

US FEAR AND GREED INDEX:

Source – www.money.cnn.com

11 Page

Mathan Somasundaram > [email protected] Sales Commentary Alex Balzuhn > [email protected] Australian Market Trading Day Wrap 15 February 2017

MARKET MOVERS AND SHAKERS:

MAJOR SECTOR PERFORMANCES OVER THE DAY:

12 Page

Mathan Somasundaram > [email protected] Sales Commentary Alex Balzuhn > [email protected] Australian Market Trading Day Wrap 15 February 2017

TODAY’S TOP 30 WINNERS AND LOSERS IN S&P 300:

Daily Price Consensus Consensus 2016 EPS 2017 EPS 2016 Div 2017 Div Code Company Name Market Cap ($m) Price ($) 2016 PE 2017 PE Newsflash Change (%) Target Price ($) Rating GROWTH GROWTH Yield Yield LYC Corporation 387.30 0.12 9.09 - - N/A N/A N/A N/A N/A N/A N/A EWC Energy World Corpor. 693.67 0.43 7.50 - - N/A N/A N/A N/A N/A N/A N/A BLD Boral Limited 6893.31 6.24 6.12 6.35 BUY 0.20 0.19 10.27 4.06 3.29 3.51 Boral 1H Net Profit Rises on US, Asia Growth CPU Computershare Ltd 7080.39 13.59 4.86 13.00 HOLD 0.19 0.19 -11.41 -0.67 2.41 2.50 Computershare 1H Net Profit US$150.2 Mln, Up 78% on Year BBN Baby Bunting Grp Ltd 306.76 2.54 4.10 3.12 BUY 0.31 0.23 N/A 32.93 2.20 3.24 N/A WGX Westgold Resources Ltd 752.54 2.57 4.05 - - N/A N/A N/A N/A N/A N/A N/A MND Monadelphous Group 1029.47 11.37 3.65 7.85 SELL 0.15 0.19 -35.32 -21.08 5.16 4.17 N/A TWE Treasury Wine Estate 8363.07 11.74 3.62 12.00 HOLD 0.38 0.29 55.19 28.69 1.65 2.25 Becoming a substantial holder CAB Cabcharge Australia 441.98 3.80 3.54 3.53 BUY 0.10 0.13 -18.88 -23.02 5.09 4.91 1H17 Results Announcement WOR WorleyParsons Ltd 2413.25 10.12 3.48 9.00 HOLD 0.16 0.18 -21.87 -12.09 0.00 0.11 N/A CTD Corp Travel Limited 1819.20 17.84 3.18 19.90 BUY 0.39 0.30 45.99 29.19 1.35 1.75 N/A FET Folkestone Edu Trust 637.49 2.63 3.14 2.71 BUY 0.19 0.17 7.06 8.86 5.03 5.36 N/A SKT Sky Network 1607.15 4.25 2.91 - - 0.11 0.15 -16.73 -25.04 6.74 6.58 N/A CSL CSL Limited 52223.21 118.00 2.90 113.75 BUY 0.34 0.30 -14.65 10.95 1.38 1.59 CSL 1H Net Profit $805.5 Million, up 12% on Year ago EML Emerchants Ltd 385.14 1.62 2.87 2.35 STRONG BUY 0.85 0.34 -15.56 150.00 0.00 0.00 N/A WES Wesfarmers Limited 47646.48 43.33 2.85 42.16 HOLD 0.21 0.17 -4.52 23.57 4.39 4.94 Wesfarmers Says 1H Net Profit Rises 13% To A$1.58 Billion HSN Hansen Technologies 719.43 4.06 2.53 4.30 BUY 0.28 0.25 32.42 12.76 1.67 1.69 N/A DRM Doray Minerals Ltd 146.34 0.42 2.44 0.65 BUY 0.08 0.14 -45.65 -39.80 0.00 0.00 N/A NAB National Aust. Bank 82430.83 31.62 2.43 31.32 HOLD 0.13 0.13 -5.34 0.83 6.13 6.13 N/A QAN Airways 6228.84 3.48 2.35 4.23 BUY 0.07 0.07 69.11 0.06 0.72 5.21 N/A RFF Rural Funds Group 359.38 1.77 2.31 1.75 STRONG BUY 0.08 0.12 150.41 -36.68 4.86 5.26 Appointment of Director CBA Commonwealth Bank. 142386.24 84.53 2.30 80.55 HOLD 0.15 0.15 0.56 0.71 4.97 4.99 Commonwealth Bank profit up 6% to $4.9B in 1H17 INA Ingenia Group 465.65 2.69 2.28 3.30 BUY 0.20 0.17 14.73 17.91 3.40 4.14 N/A SYR Syrah Resources 851.94 3.30 2.17 5.00 BUY -0.58 -0.90 N/A 35.70 0.00 0.00 Executive Chairman Remuneration Update MQG Ltd 29212.39 87.61 2.07 89.00 BUY 0.15 0.14 29.60 3.43 4.40 4.87 Ceasing to be a substantial holder ARF Arena REIT. 459.27 2.00 2.04 2.11 STRONG BUY 0.18 0.17 -11.46 8.43 5.47 5.93 N/A RRL Regis Resources 1738.44 3.54 2.02 3.31 HOLD 0.16 0.14 32.22 14.25 2.89 3.60 N/A MTS Limited 2146.41 2.24 1.82 2.30 HOLD 0.12 0.12 -10.88 2.66 0.43 0.59 N/A VTG Vita Group Ltd 509.09 3.41 1.79 4.72 BUY 0.16 0.13 74.27 19.31 4.07 4.81 N/A MFG Magellan Fin Grp Ltd 4255.45 25.17 1.78 27.02 BUY 0.22 0.22 27.83 -1.73 3.63 3.41 N/A

Daily Price Consensus Consensus 2016 EPS 2017 EPS 2016 Div 2017 Div Code Company Name Market Cap ($m) Price ($) 2016 PE 2017 PE Newsflash Change (%) Target Price ($) Rating GROWTH GROWTH Yield Yield DMP Domino Pizza Enterpr 5555.52 53.56 -14.36 75.00 BUY 0.53 0.38 41.41 38.10 1.25 1.75 Domino's Pizza Tumbles 14% After Losing Sales Momentum PRY Primary Health Care 2017.95 3.41 -11.89 4.02 HOLD 0.17 0.16 -16.04 2.43 3.71 3.83 Policy Uncertainty to Weigh on Annual Profit IFL IOOF Holdings Ltd 2764.23 8.50 -7.71 9.20 HOLD 0.15 0.15 0.54 -2.40 6.32 6.10 IOOF Holdings 1H Net Profit A$74.2 Mln, Down 45% PDN Ltd 274.06 0.15 -6.25 0.11 HOLD -0.05 -0.09 58.54 39.07 0.00 0.00 N/A OGC OceanaGold Corp. 2720.35 4.19 -5.84 5.15 BUY 0.16 0.11 21.56 42.83 1.24 1.14 OceanaGold Seen Rocked by Mine Suspension Order SWM Seven West Media Ltd 1176.27 0.74 -5.77 0.73 HOLD 0.05 0.07 -12.83 -25.18 10.28 9.17 Half Yearly Results Presenters Notes ACX Aconex Limited 805.85 3.85 -5.41 4.00 BUY 0.84 0.94 542.31 -10.87 0.00 0.00 ASX releases Aconex from Appendix 4C Requirement SXY Senex Energy Limited 479.01 0.36 -5.33 0.31 HOLD 0.53 -1.91 98.52 -127.72 0.00 0.00 FY17 half year results GXY 1049.51 0.54 -4.42 0.71 BUY -1.08 0.14 -233.33 870.00 0.00 0.00 Minimal Impact on Production from Rainfall at Mt Cattlin HFR Highfield Res Ltd 386.43 1.15 -4.17 2.00 BUY -1.57 -0.52 78.28 -204.64 0.00 0.00 N/A EQT Equity Trustees 367.02 17.56 -4.04 19.00 BUY 0.18 0.18 -9.07 -1.32 3.79 4.27 N/A NAN Nanosonics Limited 860.45 2.78 -3.81 3.30 BUY -37.07 0.56 96.54 6740.00 0.00 0.00 N/A SGF SG Fleet Group Ltd 870.43 3.31 -3.78 4.41 BUY 0.15 0.13 29.14 19.50 4.13 4.86 N/A GWA GWA Group Ltd 770.73 2.83 -3.08 2.72 HOLD 0.17 0.15 17.30 14.80 4.85 5.39 N/A FSF Share Fund 728.19 5.75 -2.54 7.21 BUY 0.12 0.11 85.48 0.93 6.70 6.63 N/A A2M 1732.41 2.36 -2.48 2.46 BUY 0.57 0.33 N/A 76.23 0.07 0.80 Appendix 3B WTC WiseTech Global Ltd 1581.02 5.31 -2.39 5.53 BUY 1.08 0.55 N/A 96.14 0.00 0.37 N/A AOG Aveo Group 1976.55 3.32 -2.35 3.75 BUY 0.20 0.18 56.54 11.40 2.42 2.71 Aveo 1H Net Profit Jumps 82%, Sales Hit Record High AJA Astro Jap Prop Group 395.45 6.37 -2.30 7.52 STRONG BUY 0.12 0.11 34.31 5.89 5.65 6.59 N/A IEL Idp Education Limited 1136.34 4.44 -2.20 4.70 BUY 0.30 0.26 N/A 15.99 1.95 2.83 N/A PLS Limited 619.58 0.48 -2.04 0.90 BUY -0.38 -0.53 N/A 28.00 0.00 0.00 Cleansing Notice and Appendix 3B SIP Sigma Pharmaceutical 1351.73 1.23 -1.99 1.28 HOLD 0.22 0.20 13.87 13.95 3.50 4.11 N/A GBT GBST Holdings.. 206.97 2.99 -1.97 3.40 HOLD 0.15 0.23 -22.03 -37.58 3.61 2.43 N/A SBM Limited 1377.61 2.72 -1.81 2.75 BUY 0.10 0.10 243.75 1.09 0.00 0.00 Change in substantial holding AMC Limited 17638.49 14.96 -1.77 16.10 BUY 0.21 0.19 -7.30 8.70 3.58 3.86 N/A SIQ Smartgrp Corporation 766.58 6.20 -1.74 6.43 HOLD 0.17 0.14 57.88 19.64 3.71 4.63 N/A GOR Gold Road Res Ltd 505.27 0.57 -1.72 0.80 BUY -0.63 -0.51 28.76 -24.58 0.00 0.00 Mining Approval Received from DMP FXL FlexiGroup Limited 882.47 2.33 -1.69 2.70 BUY 0.08 0.09 -2.34 -9.25 6.40 6.30 N/A ORA Orora Limited 3644.19 2.97 -1.66 3.15 BUY 0.23 0.20 18.84 12.26 3.05 3.42 Orora Limited FY17 Half Year Results - Investor Presentation SKI 4087.29 2.39 -1.65 2.53 BUY 0.23 0.23 -9.67 2.29 6.03 6.42 VPN makes further EMTN placement

13 Page

Mathan Somasundaram > [email protected] Sales Commentary Alex Balzuhn > [email protected] Australian Market Trading Day Wrap 15 February 2017

CHECKING S&P 300 BY THE SECTOR:

 Energy stocks:

Daily Price Consensus Consensus 2016 EPS 2017 EPS 2016 Div 2017 Div Code Company Name Market Cap ($m) Price ($) 2016 PE 2017 PE Newsflash Change (%) Target Price ($) Rating GROWTH GROWTH Yield Yield WOR WorleyParsons Ltd 2413.25 10.12 3.48 9.00 HOLD 0.16 0.18 -21.87 -12.09 0.00 0.11 N/A AWE AWE Limited 287.85 0.55 0.92 0.63 HOLD -0.04 -0.21 -344.11 82.31 0.00 0.00 N/A WPL 26831.87 31.90 0.16 33.20 BUY 0.23 0.19 -16.16 22.25 3.46 4.22 N/A CTX Caltex Australia 7678.26 29.45 0.03 34.40 BUY 0.15 0.14 -15.39 10.65 3.49 3.85 N/A SEH Sino Gas Energy 219.21 0.11 0.00 0.21 STRONG BUY -0.18 0.50 -46.90 135.47 0.00 0.00 N/A FAR FAR Ltd 348.00 0.08 0.00 0.15 BUY -0.39 -0.52 -0.50 25.00 0.00 0.00 N/A OSH Ltd 10841.57 7.11 -0.14 8.00 BUY 0.76 0.26 -71.20 194.90 0.61 1.63 N/A STO Santos Ltd 8248.32 3.94 -0.51 4.55 HOLD 1.30 0.21 -59.41 524.73 0.06 1.11 N/A LNG Liquefied Natural 430.90 0.84 -0.60 12.00 - -0.04 #DIV/0! -168.46 100.00 0.00 0.00 N/A KAR Karoon Gas Australia 412.96 1.67 -0.60 2.40 BUY -0.22 -0.21 54.33 -2.63 0.00 0.00 N/A ORG Origin Energy 12811.05 7.25 -0.68 6.88 HOLD 0.30 0.24 -54.64 23.78 1.81 0.20 Origin Energy Warns of A$1.9 Bln Impairment Hit WHC Whitehaven Coal 2883.19 2.78 -1.07 3.10 BUY 2.09 0.06 147.51 3124.76 0.00 1.02 N/A BPT Limited 1380.17 0.73 -1.35 0.70 SELL 0.35 0.11 -70.55 222.87 0.75 1.55 N/A SXY Senex Energy Limited 479.01 0.36 -5.33 0.31 HOLD 0.53 -1.91 98.52 -127.72 0.00 0.00 FY17 half year results PDN Paladin Energy Ltd 274.06 0.15 -6.25 0.11 HOLD -0.05 -0.09 58.54 39.07 0.00 0.00 N/A

 Material (Ex Mining) stocks:

Daily Price Consensus Consensus 2016 EPS 2017 EPS 2016 Div 2017 Div Code Company Name Market Cap ($m) Price ($) 2016 PE 2017 PE Newsflash Change (%) Target Price ($) Rating GROWTH GROWTH Yield Yield BLD Boral Limited 6893.31 6.24 6.12 6.35 BUY 0.20 0.19 10.27 4.06 3.29 3.51 Boral 1H Net Profit Rises on US, Asia Growth IPL 6411.25 3.86 1.58 3.50 BUY 0.23 0.21 -28.21 10.18 2.33 2.78 N/A NUF Limited 2473.36 9.37 1.08 9.30 HOLD 0.25 0.18 -1.66 35.34 1.13 1.46 N/A BKW 1908.55 12.92 0.94 14.33 HOLD 0.14 0.12 19.22 13.27 3.64 3.97 N/A ABC Brighton 3410.68 5.29 0.76 5.21 HOLD 0.18 0.17 -2.18 3.51 5.16 5.19 N/A ORI Limited 6996.87 18.74 0.75 16.13 HOLD 0.18 0.18 -10.97 -0.63 2.89 2.86 N/A FBU 6696.96 9.71 0.62 9.83 HOLD 0.18 0.15 9.56 16.27 3.77 4.12 N/A DLX Duluxgroup Limited 2405.57 6.21 0.49 6.10 HOLD 0.19 0.18 8.76 4.41 3.84 4.00 N/A PGH Pact Group Hldgs Ltd 2085.66 6.97 0.00 6.65 BUY 0.22 0.19 7.85 14.52 2.99 3.44 N/A JHX James Hardie Indust 8415.66 18.99 -0.52 20.30 HOLD 0.25 0.26 26.08 -1.96 3.01 2.66 N/A TFC TFS Corporation Ltd 606.90 1.54 -0.96 3.20 STRONG BUY 0.29 0.23 -12.97 22.97 2.03 1.95 N/A AJX Alexium International 224.28 0.73 -1.35 1.00 STRONG BUY -0.17 0.33 N/A 150.00 0.00 0.00 N/A CSR CSR Limited 2234.85 4.36 -1.58 4.11 HOLD 0.14 0.12 23.54 15.83 5.29 5.70 N/A ORA Orora Limited 3644.19 2.97 -1.66 3.15 BUY 0.23 0.20 18.84 12.26 3.05 3.42 Orora Limited FY17 Half Year Results - Investor Presentation AMC Amcor Limited 17638.49 14.96 -1.77 16.10 BUY 0.21 0.19 -7.30 8.70 3.58 3.86 N/A HFR Highfield Res Ltd 386.43 1.15 -4.17 2.00 BUY -1.57 -0.52 78.28 -204.64 0.00 0.00 N/A

 Gold stocks:

Daily Price Consensus Consensus 2016 EPS 2017 EPS 2016 Div 2017 Div Code Company Name Market Cap ($m) Price ($) 2016 PE 2017 PE Newsflash Change (%) Target Price ($) Rating GROWTH GROWTH Yield Yield WGX Westgold Resources Ltd 752.54 2.57 4.05 - - N/A N/A N/A N/A N/A N/A N/A DRM Doray Minerals Ltd 146.34 0.42 2.44 0.65 BUY 0.08 0.14 -45.65 -39.80 0.00 0.00 N/A RRL Regis Resources 1738.44 3.54 2.02 3.31 HOLD 0.16 0.14 32.22 14.25 2.89 3.60 N/A NCM 17136.54 22.56 0.94 23.32 HOLD 0.40 0.23 -9.76 74.33 0.34 1.07 N/A NST Northern Star 2600.35 4.37 0.92 4.10 HOLD 0.16 0.13 20.43 18.83 1.55 2.30 N/A SAR Saracen Mineral 1021.55 1.28 0.79 1.20 BUY 0.32 0.14 -5.18 135.89 0.00 0.78 N/A EVN Ltd 3930.57 2.35 0.43 2.45 BUY 0.16 0.13 33.48 24.92 1.01 1.53 N/A AQG Alacer Gold Corp. 256.38 2.98 0.34 3.75 HOLD 0.34 0.40 -57.92 -14.72 0.00 0.00 N/A MLX Metals X Limited 524.03 0.86 -0.58 0.85 BUY 0.26 0.14 -64.91 82.44 3.51 0.78 N/A RSG Resolute Mining 1286.03 1.73 -0.86 1.91 BUY 0.08 0.09 130.97 -8.68 0.25 0.97 N/A DCN Dacian Gold Ltd 340.85 2.30 -1.29 3.13 BUY -0.37 -0.49 -32.00 23.33 0.00 0.00 Change in substantial holding for DCN BDR Beadell Resource Ltd 375.97 0.35 -1.41 0.41 BUY 0.09 0.07 407.35 34.72 0.41 0.25 N/A PRU Perseus Mining Ltd 356.09 0.34 -1.45 0.40 HOLD -0.28 -0.06 -110.72 -375.27 0.00 0.00 N/A GOR Gold Road Res Ltd 505.27 0.57 -1.72 0.80 BUY -0.63 -0.51 28.76 -24.58 0.00 0.00 Mining Approval Received from DMP SBM St Barbara Limited 1377.61 2.72 -1.81 2.75 BUY 0.10 0.10 243.75 1.09 0.00 0.00 Change in substantial holding OGC OceanaGold Corp. 2720.35 4.19 -5.84 5.15 BUY 0.16 0.11 21.56 42.83 1.24 1.14 OceanaGold Seen Rocked by Mine Suspension Order

 Mining (Ex Gold) stocks:

Daily Price Consensus Consensus 2016 EPS 2017 EPS 2016 Div 2017 Div Code Company Name Market Cap ($m) Price ($) 2016 PE 2017 PE Newsflash Change (%) Target Price ($) Rating GROWTH GROWTH Yield Yield LYC Lynas Corporation 387.30 0.12 9.09 - - N/A N/A N/A N/A N/A N/A N/A SYR Syrah Resources 851.94 3.30 2.17 5.00 BUY -0.58 -0.90 N/A 35.70 0.00 0.00 Executive Chairman Remuneration Update MIN Mineral Resources. 2493.20 13.54 1.58 11.55 HOLD 0.22 0.14 15.08 56.70 1.58 3.70 N/A FMG Fortescue Metals Grp 21422.93 6.98 1.45 6.50 HOLD 0.20 0.07 112.68 167.61 1.24 5.28 N/A IGO Independence Group 2505.20 4.33 1.41 3.95 HOLD 0.76 0.49 -83.85 55.45 0.26 0.72 N/A BHP BHP Billiton Limited 84178.42 26.54 1.26 28.76 HOLD 1.03 0.15 -86.56 602.13 1.53 3.78 N/A OZL OZ Minerals 2950.81 9.94 0.61 8.50 HOLD 0.27 0.22 -13.19 19.80 1.55 1.53 N/A ILU 2976.96 7.15 0.56 7.00 HOLD -0.80 0.46 -139.93 275.20 1.48 2.19 N/A BSL BlueScope Steel Ltd 7047.41 12.33 0.41 12.70 BUY 0.23 0.12 146.48 103.62 0.67 1.09 N/A WSA Western Areas Ltd 732.42 2.69 0.00 2.70 HOLD -0.34 0.65 -135.42 151.98 0.03 0.28 Advance Notice - Half Year Results Conference Call S32 Limited 14214.45 2.67 0.00 3.05 HOLD 1.13 0.09 -87.01 1097.29 0.20 5.07 N/A RIO Limited 29061.42 68.40 -0.16 71.00 HOLD 0.20 0.13 0.47 49.35 2.71 4.23 N/A ORE Limited 809.73 3.84 -0.26 4.98 BUY -0.18 0.31 -394.37 159.42 0.00 0.00 N/A AWC 5730.89 1.98 -0.50 1.99 HOLD 0.42 0.16 -48.73 171.32 3.92 6.72 N/A SGM Sims Metal Mgmt Ltd 2428.41 12.14 -1.30 11.76 HOLD 0.66 0.20 -61.70 222.97 1.63 2.60 1H Net Profit A$80M Vs A$250M Loss in Year-earlier Period

SFR Sandfire Resources 1086.80 6.80 -1.31 6.75 BUY 0.19 0.13 -36.89 40.67 1.49 2.33 N/A 14 MNS Magnis Resource Ltd 338.50 0.73 -1.35 1.40 BUY -0.38 -0.43 -22.11 10.53 0.00 0.00 N/A PLS Pilbara Minerals Limited 619.58 0.48 -2.04 0.90 BUY -0.38 -0.53 N/A 28.00 0.00 0.00 Cleansing Notice and Appendix 3B

GXY Galaxy Resources 1049.51 0.54 -4.42 0.71 BUY -1.08 0.14 -233.33 870.00 0.00 0.00 Minimal Impact on Production from Rainfall at Mt Cattlin Page

Mathan Somasundaram > [email protected] Sales Commentary Alex Balzuhn > [email protected] Australian Market Trading Day Wrap 15 February 2017

 Industrial stocks:

Daily Price Consensus Consensus 2016 EPS 2017 EPS 2016 Div 2017 Div Code Company Name Market Cap ($m) Price ($) 2016 PE 2017 PE Newsflash Change (%) Target Price ($) Rating GROWTH GROWTH Yield Yield MND Monadelphous Group 1029.47 11.37 3.65 7.85 SELL 0.15 0.19 -35.32 -21.08 5.16 4.17 N/A CAB Cabcharge Australia 441.98 3.80 3.54 3.53 BUY 0.10 0.13 -18.88 -23.02 5.09 4.91 1H17 Results Announcement QAN Qantas Airways 6228.84 3.48 2.35 4.23 BUY 0.07 0.07 69.11 0.06 0.72 5.21 N/A AZJ Holdings Ltd 10545.97 5.20 1.17 4.87 HOLD 0.21 0.19 -12.30 7.89 4.69 5.01 N/A PRG Programmed 463.17 1.82 1.11 2.00 BUY 0.08 0.11 -11.33 -24.57 7.11 4.81 N/A SVW 2711.16 9.71 0.73 6.91 HOLD 0.22 0.17 -28.90 24.61 4.10 4.15 N/A SPO Spotless Grp Hld Ltd 1048.87 0.96 0.52 1.07 HOLD 0.08 0.10 -1.82 -21.66 8.75 7.20 N/A ALQ Als Ltd 3060.62 6.10 0.49 6.20 HOLD 0.24 0.29 -20.87 -15.55 2.24 1.91 N/A RWC Reliance Worldwide Corp 1428.00 2.73 0.37 3.10 HOLD 0.27 0.23 N/A 18.75 0.00 2.38 N/A CIM CIMIC Group 12678.34 39.23 0.33 32.50 SELL 0.25 0.21 5.52 18.89 2.57 3.02 N/A BXB 16711.40 10.55 0.29 12.07 HOLD 0.20 0.20 -0.37 1.60 3.20 3.08 N/A CWY Waste Man 1845.48 1.16 0.00 1.15 HOLD 0.31 0.27 33.19 18.24 1.62 1.77 N/A CDD Cardno Limited 556.32 1.16 0.00 0.65 HOLD 0.53 0.47 123.54 13.06 0.00 0.00 N/A MQA Macq Atlas Roads Grp 2772.58 5.23 0.00 5.75 BUY 0.35 0.22 -6.29 60.05 3.44 3.88 N/A IPH IPH Limited 959.77 5.00 -0.20 6.98 BUY 0.18 0.18 56.38 2.66 4.62 4.71 N/A TCL Transurban Group 22493.00 10.93 -0.27 11.98 BUY 0.88 0.69 57.09 27.67 4.16 4.71 Change of Directors Interest Notice - N Chatfield MLD MACA Limited 378.46 1.61 -0.31 1.82 STRONG BUY 0.15 0.12 -60.83 25.96 4.97 5.59 N/A SEK 5241.43 15.01 -0.40 15.23 HOLD 0.29 0.26 -7.96 11.36 2.36 2.70 N/A QUB Ltd 3441.04 2.36 -0.42 2.63 HOLD 0.29 0.26 -17.83 10.04 2.20 2.49 N/A SIV Silver Chef Limited 302.72 8.35 -0.60 10.66 BUY 0.11 0.12 46.00 -3.96 4.65 5.09 N/A MMS McMillan Shakespeare 899.44 10.73 -0.74 12.00 HOLD 0.10 0.10 15.90 -1.43 5.79 5.76 N/A SYD SYD Airport 14083.91 6.21 -0.80 7.06 BUY 0.41 0.37 35.79 11.35 5.00 5.43 N/A SSM Service Stream 430.92 1.17 -0.85 1.18 STRONG BUY 0.20 0.17 N/A 15.62 2.11 2.99 Dividend/Distribution - SSM RCR RCR Tomlinson 439.49 3.11 -0.96 3.25 STRONG BUY 0.45 0.12 -75.06 280.79 1.56 2.89 N/A ASB Limited 614.41 1.74 -1.14 1.66 BUY 0.24 0.21 -44.09 16.90 2.30 2.27 N/A TOX Tox Free Solutions 484.87 2.47 -1.20 2.69 HOLD 0.14 0.15 -2.31 -4.68 3.68 3.60 N/A AIA Auckland Internation 7740.80 6.42 -1.23 - - 0.39 0.34 23.37 14.33 2.58 2.90 N/A DOW Downer EDI Limited 2956.51 6.85 -1.58 6.59 HOLD 0.17 0.17 -15.81 1.17 3.44 3.53 QUOTED: Ex Dividend SIQ Smartgrp Corporation 766.58 6.20 -1.74 6.43 HOLD 0.17 0.14 57.88 19.64 3.71 4.63 N/A GWA GWA Group Ltd 770.73 2.83 -3.08 2.72 HOLD 0.17 0.15 17.30 14.80 4.85 5.39 N/A SGF SG Fleet Group Ltd 870.43 3.31 -3.78 4.41 BUY 0.15 0.13 29.14 19.50 4.13 4.86 N/A

 Consumer stocks:

Daily Price Consensus Consensus 2016 EPS 2017 EPS 2016 Div 2017 Div Code Company Name Market Cap ($m) Price ($) 2016 PE 2017 PE Newsflash Change (%) Target Price ($) Rating GROWTH GROWTH Yield Yield BBN Baby Bunting Grp Ltd 306.76 2.54 4.10 3.12 BUY 0.31 0.23 N/A 32.93 2.20 3.24 N/A CTD Corp Travel Limited 1819.20 17.84 3.18 19.90 BUY 0.39 0.30 45.99 29.19 1.35 1.75 N/A SKT Sky Network 1607.15 4.25 2.91 - - 0.11 0.15 -16.73 -25.04 6.74 6.58 N/A VTG Vita Group Ltd 509.09 3.41 1.79 4.72 BUY 0.16 0.13 74.27 19.31 4.07 4.81 N/A ISU Iselect Ltd 424.25 1.88 1.62 2.23 BUY 0.41 0.22 -36.36 84.62 0.94 1.33 N/A SLK Sealink Travel Grp 449.12 4.51 1.58 4.81 BUY 0.21 0.18 72.43 12.39 2.50 2.97 N/A WPP WPP Aunz Ltd 886.24 1.06 1.44 1.41 BUY 0.11 0.10 1.04 13.33 5.64 6.82 N/A GEM G8 Education Limited 1380.05 3.63 1.40 3.78 BUY 0.15 0.13 0.94 10.52 6.65 6.68 N/A DNA Donaco International 307.55 0.38 1.35 0.92 STRONG BUY 0.05 0.05 333.80 6.49 3.02 7.02 N/A OML Ooh!Media Limited 736.98 4.55 1.34 5.35 BUY 0.19 0.16 37.24 20.12 2.81 3.20 N/A MTR Mantra Group Ltd 900.54 3.07 1.32 3.95 BUY 0.19 0.17 13.12 10.35 3.38 4.01 N/A GUD G.U.D. Holdings 889.12 10.50 1.25 10.40 HOLD 0.19 0.17 12.63 11.29 4.30 4.39 N/A GXL Greencross Limited 766.60 6.68 1.21 7.78 HOLD 0.18 0.17 8.62 8.72 2.85 3.08 N/A BAP Bapcor Limited 1625.23 5.92 1.20 6.33 BUY 0.33 0.25 33.94 33.45 1.85 2.44 N/A ALL 9846.35 15.60 1.17 18.03 BUY 0.26 0.21 61.37 24.28 1.59 2.17 N/A AHG Automotive Holdings 1313.23 4.00 1.01 4.54 BUY 0.13 0.13 6.22 -3.43 5.72 5.69 N/A SKC Skycity Ent Grp Ltd 2376.01 3.67 0.82 27.13 HOLD 0.15 0.16 27.07 -7.11 5.30 5.13 N/A VRL Village Roadshow Ltd 627.74 3.91 0.77 4.60 BUY 0.12 0.14 10.49 -15.92 7.12 6.20 N/A TTS Tatts Group Ltd 6079.67 4.17 0.72 4.38 HOLD 0.23 0.25 0.64 -6.67 4.12 3.95 N/A RFG Retail Food Group 1102.10 6.30 0.64 7.08 BUY 0.16 0.13 10.07 16.56 4.22 4.86 N/A REA REA Group 7144.21 54.54 0.55 60.00 BUY 0.32 0.30 17.42 7.56 1.60 1.70 N/A APO Apn Outdoor Grp 968.03 5.84 0.52 6.05 BUY 0.19 0.17 31.09 13.22 3.01 3.41 N/A NEC 862.66 1.00 0.51 1.09 HOLD 0.08 0.09 -14.42 -12.73 11.55 10.34 N/A NVT Navitas Limited 1735.84 4.84 0.41 4.85 HOLD 0.20 0.20 -2.65 -2.67 4.05 4.03 N/A ADH Adairs Limited 214.81 1.30 0.39 2.20 BUY 0.08 0.10 24.55 -18.88 8.21 7.82 N/A SXL Sthn Cross Media 1111.22 1.45 0.35 1.35 HOLD 0.14 0.12 10.27 17.11 4.60 5.56 N/A NWS News Corp.. 771.33 17.40 0.23 21.35 HOLD 0.30 0.29 -8.98 5.39 1.41 1.68 N/A SUL Super Ret Rep Ltd 1915.20 9.73 0.21 11.10 BUY 0.18 0.15 1.72 20.68 4.20 4.82 N/A HVN 5740.78 5.17 0.19 4.86 HOLD 0.18 0.15 19.18 14.00 4.75 5.77 N/A PMV Premier Investments 2163.12 13.76 0.15 15.50 BUY 0.20 0.19 17.88 6.92 3.40 3.81 N/A TRS The Reject Shop 243.00 8.43 0.12 11.30 HOLD 0.11 0.12 67.27 -9.83 5.30 5.54 N/A JBH JB Hi-Fi Limited 3259.42 28.53 0.11 31.20 HOLD 0.20 0.16 12.27 25.90 3.33 4.10 N/A CWN Ltd 8412.95 11.56 0.09 12.83 BUY 0.21 0.22 -23.96 -4.24 4.99 10.73 N/A APN APN News & Media 814.86 2.65 0.00 3.38 BUY 0.14 0.12 -53.60 12.13 1.84 3.90 N/A FXJ Fairfax Media Ltd 2046.53 0.89 0.00 0.93 HOLD 0.14 0.15 -0.68 -2.10 4.56 4.41 N/A KMD Hold Ltd 378.79 1.88 0.00 2.02 BUY 0.12 0.11 57.45 9.21 4.69 5.96 N/A AGI Ainsworth Game Tech. 586.02 1.77 0.00 1.87 HOLD 0.11 0.13 -6.38 -16.20 5.83 5.02 N/A TGA Thorn Group Limited 251.61 1.59 0.00 1.75 HOLD 0.08 0.08 3.14 -7.58 7.67 7.55 N/A CCV Cash Converters 175.03 0.36 0.00 0.40 HOLD 0.09 0.09 36.67 -2.44 11.27 5.63 N/A TAH Ltd 3625.06 4.33 -0.23 4.95 HOLD 0.20 0.19 0.75 5.94 5.48 5.64 N/A WEB Limited 1130.78 11.51 -0.35 10.81 BUY 0.45 0.29 12.38 53.80 1.19 1.78 N/A RCG RCG Corporation Ltd 763.22 1.41 -0.35 1.79 BUY 0.21 0.16 74.68 29.00 3.83 4.82 N/A AAD Group 1041.39 2.21 -0.45 2.46 HOLD 0.18 0.27 -11.31 -32.13 5.70 3.71 N/A BRG Ltd 1160.45 8.86 -0.67 9.00 BUY 0.23 0.21 0.81 8.36 3.21 3.43 N/A MYR Myer Holdings Ltd 1079.98 1.31 -0.76 1.30 HOLD 0.14 0.14 -22.86 0.81 3.99 4.34 N/A SGR 4177.90 5.02 -0.79 6.20 BUY 0.17 0.17 15.01 -0.12 2.57 2.88 N/A IVC InvoCare Limited 1466.70 13.22 -0.83 12.85 HOLD 0.27 0.25 11.07 8.81 3.02 3.32 N/A ARB ARB Corporation 1273.28 15.94 -0.87 17.65 HOLD 0.26 0.24 6.21 9.97 2.00 2.17 N/A FLT Travel 3130.86 30.70 -0.97 33.15 HOLD 0.12 0.13 -1.61 -8.51 4.82 4.58 N/A TME Group 1890.49 4.71 -1.05 4.38 HOLD 0.24 0.22 8.28 11.23 3.36 3.67 N/A AMA AMA Group Limited 532.90 1.11 -1.33 1.25 STRONG BUY 0.30 0.23 23.33 31.76 2.30 2.66 N/A CKF Ltd 564.69 5.81 -1.36 6.35 BUY 0.18 0.16 32.31 14.54 2.28 3.01 N/A TEN Ten Network Holdings 331.37 0.90 -1.64 1.00 HOLD -0.27 -0.77 70.76 64.99 0.00 0.00 N/A

IEL Idp Education Limited 1136.34 4.44 -2.20 4.70 BUY 0.30 0.26 N/A 15.99 1.95 2.83 N/A 15 SWM Seven West Media Ltd 1176.27 0.74 -5.77 0.73 HOLD 0.05 0.07 -12.83 -25.18 10.28 9.17 Half Yearly Results Presenters Notes DMP Domino Pizza Enterpr 5555.52 53.56 -14.36 75.00 BUY 0.53 0.38 41.41 38.10 1.25 1.75 Domino's Pizza Tumbles 14% After Losing Sales Momentum

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Mathan Somasundaram > [email protected] Sales Commentary Alex Balzuhn > [email protected] Australian Market Trading Day Wrap 15 February 2017

 Staple stocks:

Daily Price Consensus Consensus 2016 EPS 2017 EPS 2016 Div 2017 Div Code Company Name Market Cap ($m) Price ($) 2016 PE 2017 PE Newsflash Change (%) Target Price ($) Rating GROWTH GROWTH Yield Yield TWE Treasury Wine Estate 8363.07 11.74 3.62 12.00 HOLD 0.38 0.29 55.19 28.69 1.65 2.25 Becoming a substantial holder WES Wesfarmers Limited 47646.48 43.33 2.85 42.16 HOLD 0.21 0.17 -4.52 23.57 4.39 4.94 Wesfarmers Says 1H Net Profit Rises 13% To A$1.58 Billion MTS Metcash Limited 2146.41 2.24 1.82 2.30 HOLD 0.12 0.12 -10.88 2.66 0.43 0.59 N/A SHV Select Harvests 401.24 5.54 1.47 6.90 HOLD 0.13 0.14 -48.68 -9.49 6.39 4.57 N/A AHY Asaleo Care Limited 792.54 1.47 1.38 1.55 BUY 0.13 0.13 -10.86 2.64 6.44 6.68 N/A TGR Group Limited 665.75 4.49 1.35 4.50 BUY 0.16 0.16 -3.04 -0.65 3.40 3.55 N/A CGC Holdings 1132.74 3.58 0.85 3.48 BUY 0.25 0.21 N/A 17.01 2.51 3.07 N/A BAL Bellamy'S Australia 465.06 4.84 0.62 4.25 SELL 0.13 0.31 321.22 -57.42 2.19 1.28 N/A ELD 489.60 4.32 0.47 4.63 BUY 0.11 0.11 14.12 -5.63 0.00 2.04 N/A GNC GrainCorp Limited 2162.69 9.45 0.00 9.79 HOLD 0.45 0.15 0.63 195.31 1.17 2.99 N/A FNP Freedom Food Ltd 839.33 4.19 -0.24 5.16 HOLD 0.75 0.47 -31.29 58.92 0.83 1.30 N/A WOW Woolworths Limited 32873.92 25.36 -0.63 23.47 HOLD 0.21 0.21 -36.84 -2.56 3.28 3.21 N/A WBA Webster Ltd 495.48 1.42 -0.70 1.44 BUY 0.57 0.24 -56.14 132.00 0.39 0.71 N/A RIC Ridley Corporation 390.93 1.26 -0.79 1.55 BUY 0.16 0.16 14.63 1.92 2.94 3.25 N/A CCL Coca-Cola Amatil 7674.08 9.96 -0.90 9.44 HOLD 0.18 0.18 7.52 2.76 4.53 4.68 N/A BGA Ltd 859.15 5.57 -1.07 7.00 BUY 0.30 0.30 29.15 -1.87 1.68 1.75 N/A BKL Limited 2023.17 116.01 -1.23 115.00 HOLD 0.20 0.26 141.01 -25.81 3.79 2.82 N/A AAC Australian Agricult. 838.07 1.48 -1.33 2.33 STRONG BUY 0.17 0.13 N/A 31.43 0.00 0.00 N/A BWX BWX Limited 455.02 4.86 -1.42 5.59 BUY 0.32 0.26 N/A 23.64 0.97 1.46 N/A MGC Mg Unit Trust 208.23 1.01 -1.46 1.21 HOLD 0.14 0.17 N/A -16.49 7.20 6.36 N/A A2M The A2 Milk Company 1732.41 2.36 -2.48 2.46 BUY 0.57 0.33 N/A 76.23 0.07 0.80 Appendix 3B FSF Fonterra Share Fund 728.19 5.75 -2.54 7.21 BUY 0.12 0.11 85.48 0.93 6.70 6.63 N/A

 Healthcare stocks:

Daily Price Consensus Consensus 2016 EPS 2017 EPS 2016 Div 2017 Div Code Company Name Market Cap ($m) Price ($) 2016 PE 2017 PE Newsflash Change (%) Target Price ($) Rating GROWTH GROWTH Yield Yield CSL CSL Limited 52223.21 118.00 2.90 113.75 BUY 0.34 0.30 -14.65 10.95 1.38 1.59 CSL 1H Net Profit $805.5 Million, up 12% on Year ago API Australian Pharm. 940.42 1.95 1.56 1.94 HOLD 0.19 0.17 21.19 14.54 2.82 3.47 Alternate Company Secretary Appointment ANN Limited 3158.33 21.72 1.40 22.70 SELL 0.17 0.16 -20.99 4.16 2.65 2.79 N/A RHC 14273.00 71.49 1.22 78.35 BUY 0.31 0.28 15.28 12.03 1.67 1.88 N/A SRX Medical 857.95 15.03 1.08 21.76 BUY 0.16 0.18 48.12 -10.33 1.76 1.71 2017 Clinician Lunch and Learn Webcast Details RMD ResMed Inc. 13028.22 9.27 0.76 9.45 BUY 0.26 0.26 2.06 1.25 1.72 4.92 N/A SHL Sonic Healthcare 9121.69 22.04 0.59 22.85 HOLD 0.21 0.20 10.74 4.51 3.38 3.53 1H Net Profit A$196.7M, up 4.7% vs Year ago EHE Estia Health Ltd 729.69 2.81 0.36 2.59 HOLD 0.10 0.14 26.97 -29.91 10.08 4.62 N/A COH 7405.17 129.20 0.19 127.35 HOLD 0.39 0.33 21.29 16.44 1.79 2.10 N/A FPH Fisher & Paykel H. 4795.07 8.46 0.12 7.82 SELL 0.37 0.30 23.52 24.08 1.85 2.25 Appendix 3B REG Regis Healthcare Ltd 1330.59 4.43 0.00 4.83 HOLD 0.26 0.22 1.42 16.84 3.99 4.47 N/A HSO Limited 4094.82 2.36 0.00 2.52 HOLD 0.21 0.21 14.41 0.83 3.15 3.24 N/A VRT Virtus Health Ltd 428.41 5.32 -0.19 6.48 BUY 0.13 0.13 3.93 -3.25 5.34 5.31 N/A MVF Monash Ivf Group Ltd 414.30 1.76 -0.28 2.00 BUY 0.15 0.14 18.22 9.93 4.56 5.14 N/A JHC Japara Healthcare Lt 540.89 2.03 -0.49 2.46 HOLD 0.17 0.16 9.35 2.26 5.71 5.89 N/A MYX Mayne Pharma Ltd 2133.28 1.41 -0.70 1.83 BUY 0.27 0.17 163.18 58.37 0.00 0.00 N/A IPD Impedimed Limited 337.51 0.89 -1.11 2.20 STRONG BUY -0.13 -0.12 -70.95 -13.50 0.00 0.00 N/A MSB Mesoblast Limited 646.74 1.59 -1.24 2.24 BUY -0.10 -0.07 44.97 -38.60 0.00 0.00 N/A SPL Starpharma Holdings 270.91 0.73 -1.36 1.00 BUY -0.13 -0.40 -46.05 67.57 0.00 0.00 N/A SIP Sigma Pharmaceutical 1351.73 1.23 -1.99 1.28 HOLD 0.22 0.20 13.87 13.95 3.50 4.11 N/A NAN Nanosonics Limited 860.45 2.78 -3.81 3.30 BUY -37.07 0.56 96.54 6740.00 0.00 0.00 N/A PRY Primary Health Care 2017.95 3.41 -11.89 4.02 HOLD 0.17 0.16 -16.04 2.43 3.71 3.83 Policy Uncertainty to Weigh on Annual Profit

 Bank stocks:

Daily Price Consensus Consensus 2016 EPS 2017 EPS 2016 Div 2017 Div Code Company Name Market Cap ($m) Price ($) 2016 PE 2017 PE Newsflash Change (%) Target Price ($) Rating GROWTH GROWTH Yield Yield NAB National Aust. Bank 82430.83 31.62 2.43 31.32 HOLD 0.13 0.13 -5.34 0.83 6.13 6.13 N/A CBA Commonwealth Bank. 142386.24 84.53 2.30 80.55 HOLD 0.15 0.15 0.56 0.71 4.97 4.99 Commonwealth Bank profit up 6% to $4.9B in 1H17 WBC Banking Corp 109727.74 33.27 1.77 33.40 HOLD 0.14 0.14 -5.33 3.48 5.59 5.59 N/A ANZ ANZ Banking Grp Ltd 86906.70 29.98 1.28 30.00 HOLD 0.15 0.13 -22.15 13.32 5.34 5.37 N/A BEN Bendigo and Adelaide 5672.03 12.15 1.25 11.51 SELL 0.14 0.13 -2.78 0.75 5.59 5.64 N/A GMA Genworth Mortgage 1482.25 2.93 0.69 3.93 BUY 0.07 0.09 -13.78 -19.38 14.72 8.95 N/A MOC Mortgage Choice Ltd 306.15 2.46 0.41 2.59 HOLD 0.15 0.14 0.00 4.94 6.75 6.98 N/A CYB Cybg PLC 3277.04 4.61 0.22 4.95 HOLD 0.20 0.16 N/A 27.33 0.00 1.06 N/A BOQ . 4423.25 11.41 -0.09 11.74 HOLD 0.12 0.12 -0.74 0.03 6.68 6.71 N/A

 Diversified Financials / Insurance stocks:

Daily Price Consensus Consensus 2016 EPS 2017 EPS 2016 Div 2017 Div Code Company Name Market Cap ($m) Price ($) 2016 PE 2017 PE Newsflash Change (%) Target Price ($) Rating GROWTH GROWTH Yield Yield EML Emerchants Ltd 385.14 1.62 2.87 2.35 STRONG BUY 0.85 0.34 -15.56 150.00 0.00 0.00 N/A MQG Macquarie Group Ltd 29212.39 87.61 2.07 89.00 BUY 0.15 0.14 29.60 3.43 4.40 4.87 Ceasing to be a substantial holder MFG Magellan Fin Grp Ltd 4255.45 25.17 1.78 27.02 BUY 0.22 0.22 27.83 -1.73 3.63 3.41 N/A CGF Challenger Limited 6505.63 11.54 1.41 11.16 HOLD 0.19 0.17 10.37 8.90 2.78 3.00 N/A ASX ASX Limited 9939.18 52.03 1.34 47.85 SELL 0.24 0.23 4.84 3.64 3.78 3.93 N/A QBE QBE Insurance Group 17474.06 12.91 1.33 13.40 BUY 0.18 0.15 -14.88 20.17 4.03 4.49 N/A CCP 785.12 16.79 1.27 19.47 BUY 0.18 0.14 15.05 22.19 2.88 3.49 N/A IAG Insurance Australia 14039.42 5.99 1.01 5.91 HOLD 0.16 0.17 -10.52 -3.63 6.85 4.76 N/A IMF IMF Bentham Ltd 309.00 1.82 0.83 2.05 BUY 0.12 0.14 339.22 -14.47 3.66 4.40 N/A SUN Ltd 17443.47 13.62 0.74 14.05 BUY 0.16 0.14 -3.52 8.98 5.16 5.44 N/A PPT 2211.82 47.80 0.65 48.27 HOLD 0.18 0.17 -2.63 2.07 5.19 5.30 N/A BTT BT Investment Mngmnt 3076.50 9.87 0.51 10.05 HOLD 0.20 0.19 11.73 4.74 4.05 4.40 N/A HFA HFA Holdings Limited 348.62 2.16 0.47 2.95 BUY 0.11 0.10 0.15 6.15 7.05 9.83 N/A AMP AMP Limited 15498.55 5.26 0.38 5.35 HOLD 0.24 0.15 -42.29 62.21 5.29 5.51 N/A BLA Blue Sky Limited 502.25 7.47 0.27 8.98 STRONG BUY 0.30 0.20 27.55 47.24 2.18 3.05 Appendix 3B ECX Eclipx Group Limited 1024.06 3.87 0.26 4.25 BUY 0.17 0.15 12.57 15.18 3.65 4.10 N/A MPL Private Ltd 7766.29 2.82 0.00 2.79 HOLD 0.19 0.19 51.70 1.21 3.85 4.09 N/A CVO Cover-More Grp Ltd 727.91 1.92 0.00 1.75 BUY 0.26 0.23 -21.42 13.22 2.89 2.98 Change in substantial holding SDF Steadfast Group Ltd 1731.93 2.30 -0.43 2.40 BUY 0.21 0.20 19.43 5.12 2.56 2.83 N/A PTM Platinum Asset 2992.06 5.05 -0.98 4.95 HOLD 0.14 0.17 5.22 -17.45 6.66 5.74 N/A OFX Ozforex Group Ltd 334.80 1.38 -1.08 1.57 HOLD 0.13 0.16 1.15 -18.64 5.54 4.48 N/A HGG Henderson Group 2609.29 3.57 -1.11 3.99 HOLD 0.15 0.14 -31.94 5.97 4.77 4.78 Henderson Group - Holding(s) in Company - Silchester

NHF NIB Holdings Limited 2129.17 4.78 -1.44 4.93 HOLD 0.22 0.20 32.00 11.02 2.91 3.36 N/A FXL FlexiGroup Limited 882.47 2.33 -1.69 2.70 BUY 0.08 0.09 -2.34 -9.25 6.40 6.30 N/A EQT Equity Trustees 367.02 17.56 -4.04 19.00 BUY 0.18 0.18 -9.07 -1.32 3.79 4.27 N/A IFL IOOF Holdings Ltd 2764.23 8.50 -7.71 9.20 HOLD 0.15 0.15 0.54 -2.40 6.32 6.10 IOOF Holdings 1H Net Profit A$74.2 Mln, Down 45% 16

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Mathan Somasundaram > [email protected] Sales Commentary Alex Balzuhn > [email protected] Australian Market Trading Day Wrap 15 February 2017

 Property stocks:

Daily Price Consensus Consensus 2016 EPS 2017 EPS 2016 Div 2017 Div Code Company Name Market Cap ($m) Price ($) 2016 PE 2017 PE Newsflash Change (%) Target Price ($) Rating GROWTH GROWTH Yield Yield FET Folkestone Edu Trust 637.49 2.63 3.14 2.71 BUY 0.19 0.17 7.06 8.86 5.03 5.36 N/A RFF Rural Funds Group 359.38 1.77 2.31 1.75 STRONG BUY 0.08 0.12 150.41 -36.68 4.86 5.26 Appointment of Director INA Ingenia Group 465.65 2.69 2.28 3.30 BUY 0.20 0.17 14.73 17.91 3.40 4.14 N/A ARF Arena REIT. 459.27 2.00 2.04 2.11 STRONG BUY 0.18 0.17 -11.46 8.43 5.47 5.93 N/A NSR 719.56 1.46 1.75 1.69 HOLD 0.17 0.16 10.68 5.58 5.99 6.27 Becoming a substantial holder VLW Villa World Ltd. 272.63 2.43 1.25 2.69 BUY 0.08 0.08 22.20 6.22 7.41 7.75 Half Year Presentation ABP Abacus Property Grp. 1699.81 3.00 1.01 3.12 HOLD 0.14 0.13 -6.37 6.40 5.67 5.88 N/A CMW Cromwell Prop 1785.28 1.03 0.99 0.98 SELL 0.12 0.12 6.10 -6.88 7.89 7.94 Appendix 3B LLC Lend Lease Group 8634.07 14.94 0.88 16.25 BUY 0.12 0.12 13.85 6.12 4.01 4.34 N/A IOF Investa Office Fund 2843.04 4.66 0.65 4.44 HOLD 0.18 0.18 1.94 1.57 4.23 4.29 N/A GOZ Growthpoint Property 2014.07 3.16 0.64 3.16 HOLD 0.15 0.14 3.02 6.63 6.53 6.84 N/A CQR Charter Hall Retail 1730.37 4.28 0.47 4.22 HOLD 0.14 0.14 1.88 -0.36 6.57 6.58 N/A MGR Group 7966.00 2.16 0.47 2.30 BUY 0.17 0.15 6.47 9.77 4.60 4.77 N/A SCP Sca Property Group 1641.48 2.22 0.45 2.21 HOLD 0.16 0.15 7.53 6.06 5.46 5.87 N/A VCX Vicinity Centres 11519.67 2.92 0.34 3.09 HOLD 0.16 0.16 0.74 -1.82 6.10 5.99 Vicinity Centres Trust Half year financial report GHC Gen Healthcare REIT 413.45 1.89 0.27 1.96 HOLD 0.19 0.19 9.82 1.51 4.68 4.76 N/A BWP BWP Trust 1869.34 2.91 0.00 2.87 SELL 0.17 0.17 5.86 3.78 5.78 5.96 N/A SGP 10918.87 4.54 0.00 4.76 HOLD 0.16 0.15 7.61 9.25 5.42 5.65 N/A GPT GPT Group 8774.02 4.88 0.00 5.04 HOLD 0.17 0.16 4.25 2.59 4.80 5.03 N/A DXS Dexus Property Group 9040.63 9.34 0.00 9.00 HOLD 0.17 0.16 1.21 2.74 4.65 4.80 DEXUS Property Group - 2017 Half Year Results Presentation VVR REIT 1649.46 2.39 0.00 2.56 BUY 0.47 0.17 N/A 169.94 2.13 5.76 N/A CWP Cedar Woods Prop. 429.96 5.45 0.00 5.62 BUY 0.10 0.10 3.39 2.71 5.17 5.37 N/A IDR Industria REIT 337.65 2.07 0.00 2.16 BUY 0.10 0.11 32.36 -15.91 7.53 7.72 N/A GTY Gateway Lifestyle Group 613.77 2.05 0.00 2.46 BUY 0.12 0.13 68.44 -4.36 5.61 5.54 N/A WFD Westfield Corp 18765.15 9.00 -0.33 10.41 BUY 0.21 0.20 -18.23 4.52 3.61 3.59 N/A CHC Charter Hall Group 2047.08 4.94 -0.40 4.93 HOLD 0.16 0.15 9.14 8.05 5.44 5.76 Initial Directors Interest Notice GMG 12971.13 7.22 -0.41 7.54 BUY 0.18 0.17 7.81 6.65 3.32 3.53 N/A SCG Scentre Grp 23799.61 4.45 -0.45 4.74 HOLD 0.20 0.19 1.65 5.24 4.76 4.96 N/A HPI Hotel Property 404.71 2.75 -0.72 3.01 BUY 0.15 0.14 9.81 7.14 6.55 9.45 N/A GDI GDI Property Grp 538.82 0.99 -1.00 1.09 STRONG BUY 0.11 0.11 7.32 3.41 7.78 7.88 N/A AVN Aventus Retail Fund 922.61 2.30 -1.29 2.49 BUY 0.19 0.13 N/A 47.88 4.37 6.91 HY17 Results Announcement INM Iron Mountain Inc 2369.80 48.30 -1.63 40.00 BUY 0.33 0.28 -11.68 14.23 5.22 5.73 N/A AJA Astro Jap Prop Group 395.45 6.37 -2.30 7.52 STRONG BUY 0.12 0.11 34.31 5.89 5.65 6.59 N/A AOG Aveo Group 1976.55 3.32 -2.35 3.75 BUY 0.20 0.18 56.54 11.40 2.42 2.71 Aveo 1H Net Profit Jumps 82%, Sales Hit Record High

 IT stocks:

Daily Price Consensus Consensus 2016 EPS 2017 EPS 2016 Div 2017 Div Code Company Name Market Cap ($m) Price ($) 2016 PE 2017 PE Newsflash Change (%) Target Price ($) Rating GROWTH GROWTH Yield Yield CPU Computershare Ltd 7080.39 13.59 4.86 13.00 HOLD 0.19 0.19 -11.41 -0.67 2.41 2.50 Computershare 1H Net Profit US$150.2 Mln, Up 78% on Year HSN Hansen Technologies 719.43 4.06 2.53 4.30 BUY 0.28 0.25 32.42 12.76 1.67 1.69 N/A ISD Isentia Group Ltd 548.00 2.78 1.46 2.90 BUY 0.17 0.16 13.60 8.46 2.88 3.17 N/A IFM Infomedia Ltd 223.79 0.73 1.39 0.85 BUY 0.21 0.19 -23.46 15.04 4.01 4.11 N/A ALU Limited 1097.72 8.51 0.95 9.15 HOLD 0.38 0.29 29.81 32.37 2.21 2.63 N/A CL1 Class Limited 359.87 3.10 0.65 3.75 BUY 0.64 0.46 N/A 37.25 1.23 1.34 N/A CAR .Com Ltd. 2672.45 11.12 0.45 12.25 BUY 0.25 0.23 4.88 8.91 3.34 3.60 N/A MYO MYOB Group Limited 2189.25 3.62 0.28 3.98 BUY 0.22 0.20 18.61 11.03 3.09 3.41 N/A CSV CSG Limited 228.61 0.72 0.00 1.00 HOLD 0.09 0.09 10.00 -2.17 12.59 10.72 N/A NXT Nextdc Limited 914.71 3.21 -0.31 4.75 BUY 1.99 0.60 138.63 229.58 0.00 0.00 N/A IRE IRESS Limited 1908.62 11.19 -0.36 12.35 HOLD 0.24 0.21 14.05 12.50 4.00 4.50 N/A NTC Netcomm Wireless 260.47 1.77 -0.56 3.77 BUY 1.54 5.06 -17.86 -69.57 0.00 0.00 N/A LNK Link Administration 2622.92 7.21 -1.10 8.38 HOLD 0.26 0.22 N/A 17.83 1.04 2.42 N/A TNE Technology One 1632.29 5.15 -1.15 5.73 BUY 0.40 0.34 14.89 15.54 1.79 2.14 N/A GBT GBST Holdings.. 206.97 2.99 -1.97 3.40 HOLD 0.15 0.23 -22.03 -37.58 3.61 2.43 N/A WTC WiseTech Global Ltd 1581.02 5.31 -2.39 5.53 BUY 1.08 0.55 N/A 96.14 0.00 0.37 N/A ACX Aconex Limited 805.85 3.85 -5.41 4.00 BUY 0.84 0.94 542.31 -10.87 0.00 0.00 ASX releases Aconex from Appendix 4C Requirement

 Telco stocks:

Daily Price Consensus Consensus 2016 EPS 2017 EPS 2016 Div 2017 Div Code Company Name Market Cap ($m) Price ($) 2016 PE 2017 PE Newsflash Change (%) Target Price ($) Rating GROWTH GROWTH Yield Yield SPK 6249.08 3.46 1.47 - - 0.19 0.18 10.64 6.66 6.83 6.62 Spark historical financial information SDA Speedcast Int Ltd 888.13 3.79 1.34 4.50 BUY 0.23 0.14 1.67 62.99 2.15 3.01 N/A VOC Vocus Comms Ltd 2648.91 4.30 0.70 5.25 BUY 0.14 0.13 66.69 14.29 3.80 4.09 N/A TPM Tpg Telecom Limited 5659.32 6.70 0.45 9.65 BUY 0.16 0.15 38.13 9.07 2.32 2.38 N/A TLS Corporation. 61488.35 5.19 0.39 5.10 HOLD 0.15 0.15 1.93 -1.93 6.08 6.06 N/A CNU 1611.68 3.96 0.00 - - 0.17 0.13 -1.84 25.22 4.82 5.08 N/A AYS Amaysim Australia 352.77 1.90 0.00 2.50 BUY 0.17 0.13 121.57 33.34 4.23 5.37 N/A

 Utility stocks:

Daily Price Consensus Consensus 2016 EPS 2017 EPS 2016 Div 2017 Div Code Company Name Market Cap ($m) Price ($) 2016 PE 2017 PE Newsflash Change (%) Target Price ($) Rating GROWTH GROWTH Yield Yield EWC Energy World Corpor. 693.67 0.43 7.50 - - N/A N/A N/A N/A N/A N/A N/A EPW ERM Power Limited 302.56 1.21 0.83 1.15 SELL 0.14 -0.15 -36.37 -196.41 9.92 7.16 N/A APA APA Group 9716.76 8.72 0.00 9.60 HOLD 0.48 0.40 -20.01 20.85 4.80 5.05 N/A AST AusNet Services 6017.27 1.67 -0.30 1.55 HOLD 0.16 0.22 24.60 -25.23 5.20 5.34 N/A DUE Duet Group 6885.52 2.82 -0.35 2.90 HOLD 0.34 0.29 67.17 16.44 6.27 6.57 N/A AGL AGL Energy Limited. 16633.14 24.64 -0.44 25.00 BUY 0.23 0.21 10.15 12.13 2.76 3.57 Revised Appendix 3X & 3Y IFN Infigen Energy 811.80 1.03 -0.96 1.20 STRONG BUY 1.37 0.34 N/A 300.00 0.00 0.00 N/A SKI Spark Infrastructure 4087.29 2.39 -1.65 2.53 BUY 0.23 0.23 -9.67 2.29 6.03 6.42 VPN makes further EMTN placement 17 Page

Mathan Somasundaram > [email protected] Sales Commentary Alex Balzuhn > [email protected] Australian Market Trading Day Wrap 15 February 2017

Macro Charts:

Market (S&P 200) – Momentum remains positive despite stretched valuation…double top forming!!!

Volatility Index (XVI) – market trading at dead calm volatility while any macro risk likely to create a spike

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Mathan Somasundaram > [email protected] Sales Commentary Alex Balzuhn > [email protected] Australian Market Trading Day Wrap 15 February 2017

Currency (AUDUSD) – looks to be topping as USD starts to recover on potential clarity on US tax policy and US Fed update

US Dollar Index (DXY) – US tax policy optimism and US Fed rate cycle hope driving the recovery

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Mathan Somasundaram > [email protected] Sales Commentary Alex Balzuhn > [email protected] Australian Market Trading Day Wrap 15 February 2017

Bond Yield (10 year Bond) – recovering on US interest rate cycle

US Bond Yield (10 year Bond) – US president flags tax policy clarity while US Fed expected to provide clarity on rate cycle tonight

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Mathan Somasundaram > [email protected] Sales Commentary Alex Balzuhn > [email protected] Australian Market Trading Day Wrap 15 February 2017

GOLD (Spot Gold in AUD) – recent rally runs into stronger USD on tax rate cut and interest rate rise outlook

WTI Oil (West Texas Intermediate Oil) – up trend remains in play as OPEC cuts runs into US shale recovery

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Mathan Somasundaram > [email protected] Sales Commentary Alex Balzuhn > [email protected] Australian Market Trading Day Wrap 15 February 2017

The day after Valentine’s Day!!!

Fiscal reform in a commodity bounce? That is a bridge too far!!!

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Mathan Somasundaram > [email protected] Sales Commentary Alex Balzuhn > [email protected]

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