The ASX 200 kicked higher by 44 points today to 6168 as CSL delivered rising 6.4% and accounting for 26 points. Dow futures up 21. CBA bucked the ex-dividend closing up 0.8% but then bank dividends are not what they used to be. Banks bucked up as the Big Bank Basket rose to $125.01 after some days of losses, the ANZ report and 25c dividend did give investors reasons to be cheerful (well a little bit) rising 3.38% and other financials did ok, ASX up 1.7% and MQG up 0.4%. In the healthcare sector the CSL rise sucked the life out of the sector with COH down 3.4% and FPH down 3.2% on results fall out. Miners were soggy despite higher commodity prices, BHP down 1.5% and NCM down 2.45% as gold miners slumped despite higher bullion prices rising through $2,000. Other gold miners on the nose with RSG down 17.5% as news spread about coups in Mali. Consumer staples remain in demand with WES up 1.6% and WOW up 0.95% though bond proxies like TCL down 0.15% and SYD down 0.6% suffered. In other corporate news, TAH in a trading halt, to raise $600m at 325c. Statutory NPAT -$870.0m vs consensus -$521.0m, includes $1.09bn write down in goodwill impairments. No final dividend for FY20. WTC was the huge winner today as the stock soared on its results and suspension of acquisitions closing up 33.9% CTD also did well up 10.6% on its numbers, whilst DMP rose 8.9% as its Japanese business is finally delivering with a stuffed crust. In other reports, BAP showed a clean set of spark plugs and rose 7.8% as more of us tinker with our cars in lockdown. VOC rose 4.8% on better than expected numbers and NEA fell far on the concern over churn down 11.6%. TWE continues to be corked after the Chinese anti-dumping investigation news yesterday falling another 8.5%. On the economic front, the six-month annualised growth rate in the Westpac-Melbourne Institute Leading Index appears to have bottomed out, rising from -4.43% to -4.37% in July. The 10-year yield steady at 0.85% and the AUD at 72.50c. In Asia, Hong Kong had a partial shutdown on a typhoon. China down 0.23% and Japan up 0.34%
- ASX 200 up 44 to 6168. Best close since March.
- High 6197 Low 6122.
- Results dominate with a few surprises.
- Big Bank Basket rises to $125.01
- CSL stars. ANZ pays a dividend. CBA ex div and rallies. Miners suffer.
- CBA ex div and rallies.
- All Tech Index up 2.22%
- 53 trading days until the US election.
- Dow Futures up 21.
- Gold steady at AUD$2749.
- 10-year bond yield steady at 0.85%
- AUD rallies to 72.50c.
- Bitcoin slips to $11737
- In Asia, Hong Kong had a partial shutdown on a typhoon. China down 0.23% and Japan up 0.34%
- WTC +33.93% surprises to the upside.
- RSG -17.47% trouble in Mali
- DMP +8.89% Japan finally fires.
- CTD +10.63% results cheer and WEB follows up %.
- CRN -13.33% capital raising weighs.
- NEA -11.57% churn burns outlook.
- PGH +2.11% hani sani keeps packaging group going strong.
- TWE -8.51% wine dumping issue continues to bring out the bears.
- WAF -6.94% Mali hurts.
- A2M -6.36% margins down and marketing expenses up.
- KGN -4.31% founder sell down.
- TRS -14.03% results disappoint after stellar run.
- WOA -14.62% profit taking.
- VMT -12.82% recent cap raising weighs.
- ADT -7.64% issue of securities.
- PET +22.81% good rally despite floods in China.
- MNY +14.59% broker upgrades.
- AMP -1.37% will release full Pahari report.
- WOW +0.95% pays $552m for a 65% stake in PFD Food services.
- TGR -0.27%% dividend steady. Profits up 20%.
- Speculative Stock of the Day: Fiji Kava (FIJ) +78.12% partnership to sell Kava in China worth $8m over three years.
- Biggest Rises: WTC, GEM, CTD, DMP, BAP, WEB and CSL.
- Biggest Falls: RSG, CRN, NEA, TWE, URW, WAF, MMS, A2M and PRN.
- CSL +6.40% FY net profit of $2.13bn up 17% in constant currency basis. ‘No material revenue impact to-date resulting from the COVID-19 pandemic, however, the situation is fluid and some elements are unpredictable’. Earnings per share $4.63, up 17% at constant currency. Total full year dividend increased to US202c up 9%. Converted to AUD, the total full year dividend is approximately 295c, up 11%. Net profit after tax for FY21 is anticipated to be in the range of approximately $2.100bn to $2.265bn at constant currency.
- Bapcor (BAP) +7.81% Results – Revenue up 12.8% EBITDA down 4.1% to $157.8m. Dividend of 9.5c up 2.9% for the year. Soldi result. No guidance given. The Burson Trade segment, consisting of Burson Auto Parts and Precision Automotive Equipment achieved record revenue and EBITDA. Revenue grew by 7.1% with same store sales up 6%.The Retail segment consisting of Autobarn, AutoPro and Sprint Auto Parts stores, as well as Midas and ABS service workshops delivered record revenue and earnings.
- OZ Minerals (OZL) +3.90% NPAT up 82% to $80m. Higher gold production and pricing driving results. EBITDA of $251m up 55%. Operating margin of 44%. EPS of 25c up 81%. Interim div 8c fully franked. Prominent Hill investment brought forward to consolidate undergound ore movement. FY guidance repeated. Copper production 88-105Kt – Gold production 227-249Koz C1 Cash Costs $0.10-0.25/lb – AISC $0.70-0.85/lb. Results look like a beat on consensus.
- ANZ (ANZ) +3.38% Q3 unaudited statutory profit $1.3bn. Operating expenses down 1% reflecting disciplined cost management. Revenue increased, benefiting from a stronger markets performance (~60% higher in 3Q20), partly offset by lower margins and transaction volumes. Net interest margin of 1.59% for 3Q20 (1.69% for 1H20). Key drivers included low-interest rates (-6 bps impact net of repricing), higher liquids, competition and mix (e.g. higher fixed-rate mortgages), partially offset by lower funding costs and deposit mix. Group CET1 ratio (APRA Level 2) 11.1%. Dividend of 25c/share fully franked. 84,000 Australian Home Loan accounts (~$31b of home loan balances) on COVID-19 loan repayment deferral (~9% of accounts, ~12% of home loan balances). 3Q20 total provision charge $500m, down significantly from the $1.7 billion charge in the first half.
- Vocus Group (VOC) +4.78% Full-year underlying NPAT $101.1m vs consensus $107.6m. Revenue $1.78bn vs consensus $1.79bn. Underlying EBITDA $360.5m vs consensus $363.9m. In FY21, expects underlying EBITDA between $382-$397m. Capex in the range of $160m-$180 and a lower net leverage ratio.
- The a2 Milk Co. (A2M) –6.36% Full-year NPAT NZ$385.8m vs consensus NZ$394.9m. Revenue NZ$1.73bn vs guidance of NZ$1.70-1.75bn and consensus NZ$1.76bn. EBITDA NZ$549.7m vs consensus NZ$563.6m. EBITDA margin 31.7% vs guidance of 31-32%. In FY21, notwithstanding COVID-19 uncertainties that could impact consumers in core markets as well as within supply chain particularly China, anticipate continued strong revenue growth. Expects capex at $50m and an EBITDA margin of 30-31%.
- Amcor (AMC) +0.25% Full-year underlying NPAT up 11% to US$1.03bn vs year-ago US$947m. Adjusted EPS US64.2c, +13% vs year ago. Revenue US$12.47B vs consensus US$12.64bn. Annual dividend increased to 46.0c, including 11.5cps dividend declared today. In FY21, expects free cash flow of over US$1bn and EPS growth of 5-10% driven by continued organic growth from our defensive consumer end markets, additional cost synergies and a lower share count resulting from shares already repurchased. Notes the Bemis acquisition is off to a very strong start. 98% of its packaging customers are in consumer staples such as food, beverages and healthcare.
- Wisetech (WTC) +33.93% Revenue up 23% and EBITDA up 17% – in line with guidance. CargoWise revenue up 20% (FY20: $263.0m; FY19: $219.6m). EBITDA margin strong at 30%. In accordance with AASB 9 ‘Financial Instruments’, a non-cash, non-taxed fair value gain of $111.0m was recorded which increased Net Profit after Tax (NPAT) to $160.8m, up 197% on 4 FY19. Cash at 30 June 2020 of $223.7m with undrawn debt facility of $190.0m in place. Fully franked final ordinary dividend of 1.60c. Guidance: currently anticipates FY21 revenue growth in the range of 9% to 19% (representing revenue of $470m – $510m) and EBITDA growth of 22% to 42% (representing $155m – $180m).
- Corporate Travel (CTD) +10.63% Underlying EBITDA $65m. Underlying NPAT $32m. Statutory NPAT loss $8.2m. $92.8m in cash. $180m undrawn finance facility. Dividend deferred and no final dividend. July 2020 underlying EBITDA loss $2.2m. ANZ and Europe regions broke even in July 2020. “ CTD is not in a position to provide earnings guidance while uncertainty remains around government decisions about travel restrictions and quarantine requirements to manage the risk of COVID-19 transmission. As at 17 August, CTM maintains a strong liquidity position with net cash at $55.0m (net of client cash and client creditors), zero debt and undrawn committed facilities of $180.0m.” The company went on to say, ‘CTD will continue to consider potential acquisitions that align with the Group’s strategy and is well positioned to pursue any relevant opportunities.’
- Nearmap (NEA) –11.57% Full-year NPAT -$36.7m vs consensus -$35.7m. Revenue $96.7m vs consensus $95.7m. EBITDA $9.1m vs consensus $7.8m. Annual contract value (ACV) $106.4m vs company guidance $103-107m. ACV portfolio growth has continued with trading conditions seven weeks into FY21 consistent with growth in FY20. Continue to target +20-40% ACV growth in medium term with underlying churn <10%.
- Dexus Property Group (DXS) +0.83% Full-year funds from operations (FFO) per security 67c vs consensus 66c. Revenue $991.9m vs consensus $900.2m. NPAT down 23.3% to $983m vs year-ago $1.28bn. Distribution 50.3c, in line with FY19. Rent collections strong at 98% Intends to deliver a distribution in line with free cash flow in FY21. However, taking into account continued uncertainty, Dexus is not providing distribution per security guidance.
- NRW Holdings (NWH) +5.67% Full-year adjusted NPAT $89.7m vs consensus $85.6m Revenue $2.06bn vs consensus $1.81bn. EBITDA $250.0m vs consensus $242.0m. Final dividend of 4c/share. The order book post the announcements of the Bunbury Outer Ring Road is ~$3.5bn. Forecasting revenue between $2.2bn to $2.3bn in FY21.
- McMillan Shakespeare (MMS) -6.54% reports FY UNPATA $69m vs guidance of $69-72m. Revenue $494 vs $512m expected on five estimates. EBITDA $99.5m vs expectations of $110.6m. UK strategic review update: plan is for hold and restructure so will continue current operations and deliver on cost out program. Outlook: some encouraging early indications for Q1 FY21. Well positioned in Plan Partners for customer and earnings growth in FY21.
- carsales.com (CAR) +4.28% reports FY adjusted NPAT $138.2m vs guidance $134-138m. Revenue $395.6m. Adjusted revenue $423.1m vs guidance $419-423m. Adjusted EBITDA $231.8m vs guidance A$228-232m. Fully franked final dividend 25 cps, same as a year ago. Brings full year div to 47 cps vs 45.5 cps a year ago. Outlook: given the continuing uncertainty due to COVID-19, we are not providing specific guidance on our financial expectations for FY21.
- Domino’s Pizza Enterprises (DMP) +8.89% reports FY underlying NPAT $145.8m vs expectations of $147.6m. Revenue $1.92bn vs expectations of $1.86bn, based on 10 estimates. Underlying EBITDA $303m vs expectations of $326.6m. Network sales $3.27bn, +12.8% y/y. Online Sales $2.36bn, +21.4% y/y. Final dividend 52.6 cps, fully franked. Record 26-Aug; payable 10-Sep. FY21 Trading and Outlook: Network Sales Growth +18.5% (SSS +11.0%), 24 new stores. Domino’s reaffirms the company’s medium-term outlook (3-5 years) for sales (+3-6% SSS) and network growth (+7-9% organic new store openings annually).
- Data #3 (DTL) -3.68% Revenue up 14.9% to $1.6bn. NPBT up 28.2% to $34.1m. Total fully franked dividend up 29.9% to 13.9c. Strong balance sheet with minimal debt. Unable to provide meaningful commentary on FY21 outlook at this stage. Results look pretty solid but no outlook maybe a slight negative. Would not be surprised to see this one push back to the highs.
- Crown Resorts reports (CWN) +3.27% Full-year NPAT (before closure costs and ex-items) $161.0m vs consensus $154.2m. Revenue $2.21bn vs consensus $2.24bn. EBITDA (before closure costs and ex-items) $503.8m vs consensus $470.1m. Closure costs of $81.6m (net of tax), and significant items of $78.7m (net of tax). No final dividend. For the period 1 July to 16 August, Crown Perth’s main floor gaming revenue (excluding VIP program play revenue) was up ~18% on the pcp, however, non-gaming revenue was down ~24% on the pcp. Based on current trading levels, Crown Perth is not expected to qualify for the JobKeeper program beyond 27 September. However, it is expected that Crown Melbourne will continue to qualify for the JobKeeper program beyond 27 September given the continued closure of that property.
- Tabcorp (TAH) – Full-year underlying NPAT $271m vs consensus $270.9m. Launches $600m entitlement offer priced at 325c/share. Revenue $5.22bn vs consensus $5.12bn. Adjusted EBITDA $995m vs consensus $991.7m. Statutory NPAT -$870.0m vs consensus -$521.0m, includes $1.09bn in goodwill impairments. No final dividend for FY20, as previously announced. Group revenues in July 2020 were up +2.8% vs year ago. Lotteries & Keno revenues +4.7%, Wagering & Media revenues +6.8% and Gaming Services revenues -52.2% over the same period.
- The six-month annualised growth rate in the Westpac-Melbourne Institute Leading Index appears to have bottomed out, rising from -4.43% to -4.37% in July.
- WBC Economist Bill Evans, now expects ‘growth in the economy to be flat in the September quarter before lifting by 2.8% in the December quarter on the assumption that Victoria moves through Stage 4 to Stage 2 and the other states avoid ‘second wave’ outbreaks’.
- NZ is beefing up its military presence at its borders.
- South Korea reported 297 more cases in the past 24 hours.
- One in five workers at Brazil’s meat plants have coronavirus, according to union estimates.
- Loss of smell could be a key consideration of the difference between the Flu and CV19.
- Universities in the US are suspending in-person classes and shifting online.
- Ireland is tightening up its CV restrictions with all sporting events to be behind closed doors. 190 cases recorded on Tuesday.
- China’s largest artificial intelligence company has been blacklisted by the US administration. SenseTime has been close to an IPO too, valuing the company at US$8.5bn pre money.
- Trump has cancelled trade talks. Blames China response to CV19.
- Japanese PM Shinzo Abe has made a surprise visit to hospital as speculation on his health and future grows.
- Biden formally nominated as Democrat nominee for President.
- By 2030 Spain could be 75% renewable energy.
- Maersk reinstates its full year guidance.
- UK CPI up 1% in July v 0.6% forecast.
- Draghi urges Europe to use soaring debt for productive purposes.