Breville.docx

“Breville Group Limited (BRG) engages in the development, marketing and distribution of small electrical kitchen appliances to the consumer products industry which products are sold to a number of markets, with principal markets being Australia, North America, New Zealand, and Hong Kong(Morningstar).” The expected return from the company based on the discounted dividend model is ##. According to simplywall st, Retail analysts are forecasting for the entire industry, a positive double-digit growth of 17.49% in the upcoming year, and a massive growth of 42.25% over the next couple of years. The company expected return is most likely accurate as the industry is going strong. Moreover, the rise of e-commerce to be fastest sales platform for consumer goods, result to the shift of consumer preference and rise other competitors helps balance the return expectation of the shareholders. Furthermore, for the past year BRG shows a slower growth compared to its retailer peers (Baker). Hence, it is impossible for BRG to earn abnormally higher return or even equal to the industry return. According to Baker, below-industry growth rate is expected to continue in the future with Breville Group poised to deliver a 13.58% growth compared to the industry average growth rate of 17.49%. https://simplywall.st/stocks/au/consumer-durables/asx-brg/breville-groupshares/news/is-breville-group-limited-asxbrg-a-retail-leader/ Australia and New Zealand Banking Group Limited (ANZ) provides a range of banking and financial products and services to retail, small business, corporate and institutional clients which operates in Australia, New Zealand, Asia Pacific region, the United Kingdom and the United States (Mornington). The expected return from the company based on the discounted dividend model is ##. As technology makes it easier for everyone to communicate and do activities, it also helped consumers to be well-informed and educated in trusting or investing money in the bank. ## expected return of the company might be accurate or even higher in the today’s Australian banking industry due to the Asia economy. According to (PWC), Asia is becoming ever more relevant to Australia, not only economically but also socially and culturally. The domestic economy is linked to the fortunes of Asian economies, and of China in particular, not just in terms of exports but also foreign-direct investment, business partnerships, domestic services, and of course residential real estate. Through the good relationship with Asian countries, it is expected to have increase in profit for the banking industry. Hence, ANZ is one of the top competitors in the market. https://www.pwc.com.au/pdf/pwc-report-future-of-banking-in-australia.pdf

AGL Energy Limited (AGL) is an integrated energy company and owner, operator and has a diverse power generation portfolio including base, peaking and intermediate generation plants, spread across traditional thermal generation as well as renewable sources including hydro, wind, landfill gas, solar and biomass in Australia (Morningstar). The expected return from the company based on the discounted dividend model is ##. The industry's revenue growth is contingent on rising demand from households, businesses and operators in other industries. According to the Electricity Profile of Australia (2014), “Australia's electricity retailing market suffered from decline in terms of volume consumption during the 2010-2014

period, despite this it still recorded strong value growth due to rising electricity prices. Furthermore, forecasts suggest volume consumption will return to low growth, while the value will decelerate due to lower price growth forecasts, for the 2014-2019 period.” Based on the lower growth forecast the expected return is a bit ambitious for the industry they are in, especially with the presence of much larger companies. Hence, barrier to market entry. Consequently, the demand for low electricity prices will drive the company’s profit down. Also, Australian Government often interferes with most likely every companies’ operations which hinders companies’ efficiency. #DEAKIN LIB!