Azzet reports on three stocks with price moving updates today.
Michael Hill soars after raising guidance ~
Shares in Michael Hill International (ASX: MHJ) were trading 12.2% higher by 1:40 pm AEDT (2:40 am GMT) after the Kiwi-born jewellery retailer reported a stronger half-year profit than a year ago.
The stock appears to have rallied strongly after management told the market to expect half-year comparable earnings to land between $27 million and $30 million, a jump of up to 24% on the previous financial year.
Benefitting from a record-breaking performance in Canada and a return to growth in the NZ market, total group sales grew 3.1% to $370.3 million.
The market also appears impressed with the retailer’s ability to maintain a steady gross margin of around 61.3% - by focusing on its product mix and promotional strategy - despite facing record-high prices for gold and silver.
Commenting on today’s market update, CEO Jonathan Waecker told the market that under new leadership, the group delivered profitable quarter-on-quarter growth, driven by significant performance improvements in the final 10 weeks of the half, resulting in a materially improved trading trajectory relative to the early FY26 trading update presented at the October AGM.
“A sharper focus on execution, and the early impact of actions taken to stabilise and strengthen the business, delivered a markedly improved performance through the half,” Waecker.
“This translated into a meaningful uplift in EBIT year on year, alongside disciplined working capital management, including a significant reduction in inventory, resulting in the Group returning to a positive net cash position at the half.”
Key 1H FY26 numbers announced today:
- On a same-store sales basis, each in local currency, Canada continued its record growth with sales up 6.1%.
- Australia sales grew by 4.8%.
- NZ has reported its first comp sales lift since FY23.
- Net cash of around $20 million was up by around $30 million last year.
- Group inventory levels are expected to be $11 million lower at $203 million.
The group consolidated its store network to 285 locations while investing in high-profile flagship refurbishments in Sydney, Adelaide and Toronto.
During the reporting period, the business successfully refinanced its existing debt facility on improved margins for an additional two years, with its long-term banking partner, ANZ and introduced a new lender, CBA.
The half also saw Michael Hill close three stores and add one new store in Australia, taking the network to 248, while the Bevilles (AU) store network remained at 37.
Overall, the group network was 285 stores at the end of the half across all markets.
The Company intends to release its half-year financial results for the 26-week period ended 28 December 2025 on Friday, 27 February 2026.
Since floundering at $0.33 late December, the stock’s share price has jumped 27% to $0.42.
Full year FY25 group revenue of $643.7m was broadly flat against the previous year, and no final dividend was declared.
Michael Hill International has a market cap of $159 million; the share price is down 20% in one year and up 18% in the last month.
The stock appears to be in a Medium-term rally, confirmed by multiple indicators.
Consensus does not cover this stock.
Karoon rises on mixed update
Despite a preliminary announcement of lower expected production in 2026, investor preoccupation with future growth catalysts and an improving broader energy sector sentiment saw Karoon Energy’s (ASX: KAR) share price nudge 0.7% higher.
Within its mixed update today, management told the market that despite posting lower production in the December quarter 2025, output is expected to increase in the second half of 2026 following significant investment in the Baúna oil project and the start-up of a new well at the Who Dat project.
Karoon Energy has forecast a dip in production this year after posting December output of 2.37 million barrels of oil and gas, down from 2.59 million in the third quarter.
The Brazil-focused explorer and producer gave preliminary guidance for production in 2026 of between 8.1 million and 9.2 million barrels, compared with total production last year of 10.3 million barrels, which was towards the upper end of the guidance range.
However, new CEO Carri Lockhart, expects output to increase in the second half of 2026 after investment to restore full production from wells at its key production venture, the Bauna oil project in Brazil’s Santos Basin.
“2026 is expected to be a year of two contrasting halves in Brazil, due to the intensive first half Baúna investment program,” said Lockhart.
“We are aiming to address many of the remaining Baúna FPSO vulnerabilities during the flotel supported expanded maintenance and revitalisation campaign and the annual scheduled full shutdown, commencing in 1Q26.”
Lockhart expects improved FPSO efficiency, together with the Baúna well activities that are targeting to restore 4,000 – 5,000 bopd to Baúna production rates, to result in a materially better performance from Baúna from mid-2026 onwards.
She also expects operating costs to fall in the second half of 2026, following the transition of operatorship of the Baúna FPSO to Karoon.
The start-up of a new well at Karoon’s US venture, the Who Dat project in the Gulf of America, is also expected lift production at that project in the second half.
Key 4Q numbers announced today:
- Revenue was US$156.1 million, marginally lower than in the September 2025 quarter and taking full-year revenue to US$628.5 million, down 19% on 2024.
- Karoon has acquired and cancelled 82.5 million shares, or approximately 10% of shares on issue.
- 4Q25 sales volumes of 2.65 MMboe were 5% higher than 3Q25 and 12% above 4Q25 production due to timing of shipments.
- Full year Floating Production Storage and Offloading (FPSO) efficiency was 95.1%, a material improvement on the efficiency of 84.5% in CY24.
Karoon Energy has a market cap of $1.185 billion; the share price is up 17% in one year and up 6% in the last month.
Consensus is Moderate Buy.
Talga Group jumps after major hurdles cleared for graphite mine
Shares in Talga Group (ASX: TLG) were trading 2.8% higher after the developer and producer of sustainable battery materials received formal approval from the Swedish Government for the detailed zoning plan covering its Nunasvaara South graphite mine, part of the Vittangi Anode Project.
This final hurdle allows the company to move into the execution phase, including obtaining building permits and finalising project financing.
The project's advancement also reinforces the strategic position of Australian resource companies in the global battery materials market.
The project is designed to produce 19,500 tonnes per annum of battery-grade anode material, with mining at Vittangi expected to commence around 2029.
With formal approvals now in place, the company can now proceed with detailed design and building permits ahead of development, following earlier approvals for the environmental permit and exploitation concession.
Significantly reducing permitting risk - as Talga advances toward financing and commercial production - the Vittangi project is designated both a Swedish mineral deposit of national interest and an EU Strategic Project under critical raw materials legislation.
As an EU Strategic Project under the Critical Raw Materials Act, the project - Europe's largest and richest graphite deposit - has secured significant financial backing, including a €150 million loan from the European Investment Bank and an $13.3 million Swedish government grant.
Commenting on today’s market update, Talga group CEO, Martin Phillips, told the market that the Swedish Government’s decision to adopt the detailed plan – which concludes a lengthy and thorough process - significantly derisks the Vittangi Anode Project as it progresses further along the financing path.
“It also unlocks certainty on planning as we move closer to commercial production,” Phillips said.
Since plunging to a low of $0.355 mid-December, the stock’s share price has risen by around a third to $0.448.
Underpinning that price rise appears to be Talga’s announced development agreement with battery innovator V4Smart to integrate Talga's graphite anode with next-generation, fast-charging battery cells.
The parties intend to establish a secure, commercial supply chain of battery anode in Europe through this non-binding agreement, which covers anode specifications, qualification volumes, and indicative commercial volumes.
Talga Group has a market cap of $220 million; the share price is down 15% in one year and up 20% in the last month.
The stock appears to have completed a medium-term rally that took the 5-day moving average above the 50-day moving average and will likely continue its bearish trend.
The 20-day moving average is downward sloping and appears set to continue the long-term bearish trend exhibited in the 200-day moving average.
Consensus does not cover this stock.
This article does not constitute financial or product advice. You should consider independent advice before making financial decisions.
