Popular Industrial Stocks on ASX- TCL, SYD, BXB and AZJ

Industrial Stocks

The three sectors that constitute the economy of a country are the agricultural sector, the service sector and the industrial sector. The industrial sector is engaged in the manufacturing and construction activities and is divided into two parts- heavy industry and light industry. Generally, this sector renovates raw materials into finished products.

Some examples of industrial sector divisions are-

  • Chemical industry
  • Consumer electronics
  • Industrial equipment
  • Automobile industry
  • Steel production
  • Tobacco industry

Let’s discuss five industrial stocks with their recent updates-

Transurban Group

About the Company:

Transurban Group (ASX: TCL) is the operator, owner and developer of intelligent transport systems and electronic toll roads. The company has a market capitalisation of $40.39 billion as on 3 October 2019.

FY19 Financial Highlights:

  • Average daily traffic (ADT) grew by 2.0%;
  • Underlying cost growth was 2.0%, or 0.7% excluding foreign exchange impact;
  • Proportional earnings before interest, tax, depreciation and amortisation (EBITDA) and before significant items increased by 12.3% to $2,016 million;
  • Free cash flow was worth $1,527 million;
  • Four projects were opened to traffic – New M4 Tunnels, Logan Enhancement Project, Gateway Upgrade North and Inner-City Bypass.

Financial Performance (Source: Company’s Report)

Acquisition of M5 West:

  • M5 West is an existing Transurban asset with a 27-year operating history;
  • There was an acquisition of the remaining 34.62% minority interests in M5 West for $468 million, taking the ownership to 100%;
  • The transaction was immediately free cash flow and value accretive, expected to be free cash flow accretive by approximately 3 cents per security in FY20 inclusive of the equity raising, strengthening distribution free cash coverage;
  • M5 West would form part of the WestConnex M5 concession following the expiry of the current concession on 10 December 2026.

Stock Information:

The stock of TCL was trading at $14.615 on 03 October 2019 at 2:14 PM AEST, down 1.11% from its previous close. Its 52-week high and low is $16.060 and $10.620, respectively, while the total outstanding shares stands at 2.73 billion.

Sydney Airport

About the Company:

Sydney Airport (ASX: SYD) is amongst Australia’s most important infrastructure and notably contributes in the domestic and national economies which generates $38 billion per year in economic activity. The company has a market capitalisation of $18.29 billion as on 3 October 2019.

Changes to the Board and Compliance Committee:

The company recently intimated about a few activities, and changes that would be effective from 27 September 2019:

  • Eleanor Padman resigned as Director of the Responsible Entity;
  • Chris Green resigned as an Alternate Director for Eleanor Padman for the Responsible Entity;
  • Anne Rozenauers appointed as a Director of the Responsible Entity;
  • Michael Vainauskas resigned as member of the Compliance Committee of the Responsible Entity;
  • Simone Mosse appointed as a member of the Compliance Committee of the Responsible Entity.
Traffic Performance in August 2019:
The domestic passengers decreased by 1.3% on a YoY basis during the month of August, to 2.2 million passengers. There was an increase of 2% in international passenger base on a YoY basis and 1.4% on a YTD basis. SYD’s international performance reduced the negative effect of domestic passenger growth. Arrivals from the United States showed a double-digit growth during the month due to good load factors on US routes and increase in Sydney’s attraction.

August Performance (Source: Company’s Report)

Stock Information:

The stock of SYD quoted $7.940 on 03 October 2019 at 2:31 PM AEST, down 1.97% from its previous close. Its 52-week high and low is $8.690 and $6.240, respectively, with 2.26 billion shares outstanding.

Brambles Limited

About the Company:

Brambles Limited (ASX: BXB) is a supply-chain logistics company primarily operating through the CHEP and IFCO brands in over 50 countries. The company has a market capitalisation of $17.84 billion as on 3 October 2019.

Review of FY19 Performance:

  • Sales revenue increased by 7%, driven by strong net new business growth and improved price realisation across the group;
  • The underlying profit increased by 2% as the revenue contribution to profit and supply chain efficiencies more than offset the cost challenges in CHEP Americas;
  • Return on Capital Invested remained strong at 19.5%;
  • The company declared a 30% franked dividend of 14.5 cents, in line with the progressive dividend policy.

Financial Performance in FY19 (Source: Company’s Presentation)

Outlook for FY20:

  • Underlying Profit growth to be in line with sales revenue growth through the cycle, driven by the progressive delivery of operational and capital efficiencies;
  • Sales revenue growth in the mid-single digits, primarily driven by growth with existing customers, ongoing conversion of new customers to pooled solutions and expansion across geographies.

Stock Information: The stock of BXB was trading at $11.065 on 03 October 2019, down 2.51% from its previous close. Its 52-week high and low is $13.470 and $9.820, respectively, with 1.57 billion shares outstanding.

Aurizon Holdings Limited

About the Company: Aurizon Holdings Limited (ASX: AZJ) is an integrated rail transporter of coal from mine to port, for export markets and a heavy haul freight railway operator. The company has a market capitalisation of $11.9 billion as on 3 October 2019.

Aurizon’s Proceedings For Sale of Australian Assets of Genesee And Wyoming:

Recently, Aurizon applied to the Supreme Court of New South Wales demanding damages and declarations that Genesee & Wyoming, Inc. (G&W) breached long-standing contractual rights held by Aurizon concerning G&W’s Australian assets.

The company had released its 2019 full year results, the Financial Highlights of which are depicted below:

Source: Company’s Presentation

Stock Information: The stock of AZJ was trading at $5.855 on 03 October 2019, down 2.09% from its previous close. Its 52-week high and low is $6.110 and $3.900, respectively while the total outstanding shares of the stock stands at 1.99 billion.


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