Market close: Summerset stars as sharemarket runs out of some steam

Summerset's share price rose 60c or 4.55 per cent to $13.80 after reporting a big jump in net profit. Photo / Supplied

Retirement village operator Summerset Group Holdings was the shining star as the New Zealand sharemarket ran out of some steam after a strong run over the past week.

The S&P/NZX 50 Index closed at 13,071.86, up 7.78 points or 0.06 per cent, after reaching a morning high of 13,150.78 and then gradually falling in the afternoon, at one stage going into negative territory at 13,046.61.

There were 91 gainers and 48 decliners, with 76 million shares worth $198 million changing hands.

Summerset Group Holdings was one of the day's biggest movers, rising 60c or 4.55 per cent to $13.80 on the back of a solid six-month result which showed there's still plenty of growth to come.

Summerset's net profit rose from $1m in the previous corresponding period to $263.8m at the end of June, boosted by a $230.8m revaluation of its property. Its underlying profit was $75.51m, up 67.5 per cent, of revenue of $94.88m. It is a paying an interim dividend of 9.9c a share on September 20.

Summerset, which has 33 villages and 6600 residents, has 12 development sites in New Zealand and Australia, and expects to double the size of its business.

Mark Lister, head of private wealth research with Craigs Investment Partners, said there's a lot to like in Summerset's result. "They are starting to get momentum in Australia and they are just executing their business well and doing the right things."

Fast food operator Restaurant Brands jumped 30c or 1.94 per cent to $15.80 after reporting a 208 per cent rise in net profit to $34.5m on record group sales of $540.6m, up 41 per cent, for the six months ending June. The sales included $77.3m from the recently bought California business.

Restaurant Brands now has 350 KFC, Carl's Jr., Taco Bell and Pizza Hut stores in New Zealand, Australia, Hawaii and California, and it is celebrating the 50th anniversary of its first KFC outlet in Royal Oak, Auckland.

Lister said Restaurant Brands has become the under-the-radar star for 2021. "Their share price has increased 37 per cent this year while the New Zealand index is down slightly. They have again produced solid numbers, as you come to expect.

"The reporting season so far has been impressive and there are still plenty of results to come. I'm feeling comfortable with the way the market and our companies are positioned – we just need to get out of alert level 4 as fast as we can," Lister said.

Heartland Group Holdings rose 6c or 2.86 per cent to $2.16 on a strong 2021 financial result. Heartland's revenue increased 6.7 per cent to $251.8m, net profit was up 20.9 per cent to $87.02m and it is paying a final dividend of 7c a share on September 15. The bank's reverse mortgage loan bank surpassed A$1 billion ($1.045b) for the first time, with 22,000 customers and a market share of 29.3 per cent.

Health products supplier Ebos Group and cancer diagnostic firm Pacific Edge hit new highs. Ebos rose 62c or 1.85 per cent to $34.12, surpassing the previous peak of $33.85 achieved on June 1. Pacific Edge was up 4c or 2.96 per cent to $1.39, gaining 18c in the past week.

Mercury Energy was up 17c or 2.49 per cent to $6.99; Contact increased 14c to $8.34; Mainfreight, an addition to the FTSE All-World Index, picked up another 29c to $90.30; a2 Milk collected 13c or 1.91 per cent to $6.95; Pushpay Holdings rose 7c or 4.17 per cent to $1.75; and PGG Wrightson climbed 16c or 4.66 per cent to $3.59.

Air New Zealand rose 4.5c or 3.13 per cent to $1.485; Sky City Entertainment gained 7c or 2.31 per cent to $3.10; Move Logistics collected 12c or 7.36 per cent to $1.75; Harmoney increased 6c or 3.16 per cent to $1.96; and Scales Corporation was up 8c or 1.82 per cent to $4.47.

After a strong build up to its annual result, Chorus fell 17c or 2.45 per cent to $6.76; Fisher and Paykel Healthcare was down 60c to $32.90; Meridian declined 13c or 2.46 per cent to $5.15 and Infratil shed 14c or 1.87 per cent to $7.34.

Fletcher Building lost 10c to $7.62; Serko declined 15c or 1.89 per cent to $7.80; takeover target Z Energy decreased 6c to $3.42; and My Food Bag was down 4c or 2.78 per cent to $1.40.

Steel & Tube turned around a loss of $60m to a net profit of $16.1m on revenue of $480m, up 15 per cent, for the year ending June, and its share price increased 2c or 1.79 per cent to $1.14. Steel & Tube has repaid all debt with $25m net cash in hand, and it is paying a final dividend of 3.29c a share on September 24.

NZME was up 2c or 2.15 per cent to 95c after reporting a six-month net profit of $5.56m, up 85 per cent, on revenue of $173.03m. It is paying an interim dividend of 3c a share on September 22, and is selling its GrabOne business to Global Marketplace New Zealand for $17.5m.

Energy company Vector gained 6c to $4.14 on the back of a 97.3 per cent increase in net profit to $194.6m on steady revenue of $1.27b for the year ending June, and it is paying a final dividend of 8.5c a share on September 16.