Watkin Jones Share Discussion Threads

[dround87] 21/1/2020 08:23

Ex div on Thursday don't forget

[edmonda] 20/1/2020 14:55

If you'd like to meet the management they are presenting on 5th Feb - you can register here

[equitydev] 17/1/2020 15:50

Great chart here in terms of what in future will be driving WJG's gross profits

[skinny] 17/1/2020 15:21

A new high to boot @260p.

[rivaldo] 17/1/2020 08:30

Finally got round to reading the new Equity Development report with the 300p target.

I particularly loved this sentence, which shows WJG's huge forward visibility:

"All student beds (2,609) & Build-to-Rent units (159) scheduled for delivery in FY20 have been forward sold"

[its the oxman] 16/1/2020 09:29

Looking for a run to c.270p myself, sense pressure is building after solid results.

[skinny] 15/1/2020 09:30

Peel Hunt reiterating their buy stance for the 4th consecutive day!

[rivaldo] 15/1/2020 09:21

New highs now, and 250p up. No reason why the steady rise shouldn't continue imho, given in particular the security of all those forward sales almost guaranteeing future performance.

[dround87] 15/1/2020 07:43

Press reaction very good. Happy reading.

[swiss paul] 14/1/2020 21:55

what is next resistance line - any charters out there - fingesr where are you?

[dround87] 14/1/2020 13:29

Unfortunately on the mobile site there is. Subscribe to continue.

[cordwainer] 14/1/2020 13:15

no pay wall atm

[dround87] 14/1/2020 13:11

Thanks! More the pay wall than the physical effort but appreciate it.

[cordwainer] 14/1/2020 13:07

in case clicking the mouse too much effort vs scrolling, here is Mr S Thompson (IC):

Watkin Jones (WJG:241.5p), a construction group specialising in purpose-built student accommodation (PBSA) and build-to-rent (BtR) housing, has delivered a total return to shareholders of 162 per cent since I suggested buying at the IPO, and with good reason ('A profitable education', 3 Apr 2016).

I flagged up today’s record annual results when the share price was 214p in a detailed analysis (‘On solid foundations’, 11 Nov 2019), and raised my target price to 275p to reflect the group’s solid earnings visibility, and strong fundamentals supporting both end user and investor demand across all parts of its business. Bearing this in mind, chief executive Richard Simpson noted during our results call that [investor] sentiment has definitely lifted since the general election as institutional investors look to invest capital in a more benign political backdrop, adding weight to Knight Frank’s forecast that total investment in PBSA is set to rise from £51bn in 2019 to £65bn by 2025. It's good news for capital flows into BtR, too.

All 2,609 of the group’s PBSA beds under construction for the current financial year are forward sold, and a further 2,376 of the 3,253 beds for 2020/21 are either forward sold or in the hands of solicitors. Add to that a planned ramp up in BtR construction projects – the group has nine developments encompassing 2,312 apartments of which 1,102 units are already forward sold – and it’s easy to see why analysts at brokerage Peel Hunt expect current year adjusted earnings per share (EPS) to increase from 16.7p to 18.2p, rising to 21.1p in 2020/21. Analysts at Jefferies are even more bullish.

Moreover, with the group holding net cash of 30p a share, and the capital-light business model generating an eye-watering return on equity of 29.9 per cent, expect the progressive dividend (the board declared a 10 per cent hike in the payout per share to 8.35p) to increase to 9p a share this year and could be north of 10p a share in 2020/21. Buy.

[rivaldo] 14/1/2020 12:29

Looking at the trades since 12.00 - it's definitely a Buy :o))

[dround87] 14/1/2020 12:17

What's the verdict for us plebs?

[dround87] 14/1/2020 10:02

Well mostly because ems is 10k. But ok!

[bothdavis] 14/1/2020 09:50

To individuals that would be a lot of money...why do you have to deride people you don't know?

If that is maney to you...well done,,,,don't belittle others trying to better themselves through investments...its not easy for everyone.

[dround87] 14/1/2020 08:35

Amateur hour selling 16.5k shares at 235 lol

[rat attack] 14/1/2020 08:22

Just received email update from Equity Development and summary as follows:

What makes a great stock? Well according to legendary investor Warren Buffet, it is buying a “wonderful business at a fair price”. A maxim that we believe rings true for Watkin Jones, who today issued another positive set of results.

FY19 turnover climbed 3.2% to £374.8m (£363.1m LY), with the dividend hiked 9.9% to 8.35p (7.6p LY & 2x covered), reflecting robust cashflows and closing net funds of £76.8m (£80.2m LY), equating to 30p/share.

Elsewhere gross profits rose 6.0% to £76.8m (margin 20.5%) with student accommodation delivering the lion’s share at £51.6m (vs £60.7m LY), but ably supported by Build-to-Rent (£13.2m vs £1.0m LY), residential housing (£7.7m vs £4.4m) and Fresh lettings (£4.6m vs £4.5m). EBIT margins ticked up too, to 14.0% (13.7%) thanks to tight cost control, with adjusted EPS climbing 4.6% to 16.7p (16.0p).

I guess we shouldn’t be surprised though, since the adjusted 29.9% RoE (FY19 average) far exceeds WJG’s cost of capital, mirroring its capital-lite model, 1st class execution and the secular tailwinds underpinning its two core markets of PBSA and BtR.

Indeed we believe disciplined capital allocation is a key theme that is unlikely to change anytime soon, given the extensive experience of the executive team, and the careful guidance offered by the Watkin Jones family (18% stake).

Going forward, management see plenty of opportunities, on the back of a chronic shortage of UK housing, increasing business confidence, a ‘Golden era’ for BtR, low interest rates and a catchup in investment after December’s General Election.

We keep our FY20 forecasts and 300p/share valuation unchanged, but look forward to further news as the year progresses.

[rat attack] 14/1/2020 08:17

Not an overwhelming market reception, but a robust performance and and an above expectation dividend - 5.6p against 5.5p I expected. Reasonably happy!! On ex cash basis looks steady, but these broker prices look like 12 month forward targets given ex cash pe of 12.5.