Australian Hot Stocks JB Hifi (JBH)


JB Hifi (JBH) stores offer the world’s leading brands of hi-fi, speakers, televisions, DVDs, cameras, car sound, home theatre, computers and portable audio and specialist hi-fi products.

JBH was one of the hot stocks during last year’s global market downturn, with its share price recovery beginning prior to the March 2009 lows.

JBH recently reported a 26% jump in FY10 net profit to $118.7 million, which was in line with analyst expectations.

JBH’s gross margin rose 12 basis points from a year ago, which was impressive considering the heavy price discounting the company undertook to attract customers.

Sales grew 17.4%, which was equally impressive given JBH faced a challenging trading environment, underscored by rising interest rates and cycling of government stimulus.

JBH forecast a 17% increase in FY11 sales, although it expected the first half of 2011 to reman challenging given subdued consumer spending.

JBH also declared a final dividend of 33 cents per share, up 50% from a year ago.  Of the Australian shares, JBH was among the few which received a broker upgrade following their latest results.