3 Industrials Sector Stocks to look at - Sydney Airport, Transurban, Fluence

3 Industrials Sector Stocks to look at - Sydney Airport, Transurban, Fluence

The Industrials sector generally comprises of those companies that are involved in the business of providing solutions as well as services like transportation, reuse and recycle services etc. At the close of trading session on 31st December 2019, S&P/ASX 200 closed at 6684.1, with a fall of 120.8 points from the last close. The same day, S&P/ASX 200 Industrials (Sector) ended the market session in red, with a decline of 146.4 points or 2.11% reaching 6,954.7 points.

In the below article, we would be looking at the three industrial sector companies with their recent updates:

Sydney Airport (ASX: SYD)

Sydney Airport (ASX: SYD) is engaged in the operations of Sydney Airport, and was officially listed on Australian Stock Exchange in 2002.

Traffic Performance Driven by International Passenger Growth

Recently, the company notified the market participants with the performance of traffic in November 2019 and outlined the following:

· As per the key personnel of the company, the overall traffic performance across 2019 had been fueled by international passenger growth and the company experienced this trend in November 2019 as well.

· The company experienced a fall of 0.3% in domestic performance as compared to pcp, which was affected by decreased domestic seat capacity. While, SYD witnessed a growth of 1.2% on international front.

On the financial front, the company happens to be in decent position, where it experienced a growth of 4.1% IN EBITDA in the results of half-year ended 30th June 2019. For the same period, the company witnessed a rise of 3.4% compared to the pcp, which has been resulted by international passenger growth as well as a solid performance from the retail business.

The company is expecting three-year capex guidance in the range of $0.9 million-$1.1 billion for the 2019- 2021 period. The company would continue to enhance its infrastructure as well as it would make investments for capacity growth for the future.

Also Read: Growth Story for Sydney Airport.

The stock of SYD closed the day’s trading at $8.660 per share on 31st December 2019, with a fall of 1.479% as compared to its previous closing price. The company has a market capitalisation of $19.85 billion as on 31st December 2019. The total outstanding shares of the company stood at 2.26 billion, and its 52-week low and high is $6.370 and $9.300, respectively. The company has given a total return of 9.46% and 8.79% in the time period of three months and six months, respectively.

Transurban Group (ASX: TCL)

Australia based Transurban Group (ASX: TCL) is into the development, operation and other activities related to toll road assets. The company through a release dated 10th December 2019 announced that $403 million of non-recourse debt has been successfully raised by Hills M2 Motorway (owned 100% by TCL) via a new bank facility with a tenor of twelve months.

The proceeds of the new bank facility would primarily be utllised by Hills M2 for refinancing an existing bank facility, which would be maturing in March 2020.

A look at Interim Distribution

· For the six months ended 31st December 2019, the company would be paying a distribution amounting to 31.0 cents per stapled security.

· The amount of distribution comprises of 29.0 cent from Transurban Holding Trust and controlled entities and a 2.0 cent fully franked dividend from Transurban Holdings Limited and controlled entities.

· On the outlook front, the company is expecting distributions of 62.0 cents in FY20, which includes the distribution of 31.0 cents for the six months ending 31 December 2019.

In another update, the company announced that Neil Gregory Chatfield, one of its directors, has made a change to his holdings in the company by disposing 10,000 stapled securities at $15.15 per security on 15th November 2019. The director, post change, holds 65,867 stapled securities.

The stock of TCL closed the day’s trading session at $14.91 per share on 31st December 2019, with a fall of 1.908% as compared to its previous closing price. The company has a market capitalisation of $41.54 billion as on 31st December 2019. The total outstanding shares of the company stood at 2.73 billion, and its 52-week low and high is $11.500 and $16.060, respectively. The company has given a total return of 3.47% and 3.40% in the time period of three months and six months, respectively.

Fluence Corporation Limited (ASX: FLC)

With operations in North and South America, Middle East and Europe, Fluence Corporation Limited (ASX: FLC) is engaged in the delivery of innovative, cost-effective decentralised water solutions for business and communities.

The company has recently, through a release dated 30th December 2019 announced that it has secured a follow-on AspiralTM order with a value of over US$3 million from Aerospace Kaitian Environmental Technology Co., Ltd. This first bulk order for a total of 15 wastewater treatment plants comprises of 27 Aspiral™ L3 units and 18 Aspiral™ L4 units, which would collectively serve more than a dozen towns, as well as rural townships in Anhui Province in China.

However, the company is anticipating the shipments to commence on an immediate basis, and it would extend into early 2020.

Share Purchase Plan

· The company has recently completed its SPP or Share Purchase Plan and raised more than $2.3 million (before costs). When it comes to the use of proceeds from SPP in combination with $36.0 million raised from the recent share placement, FLC would be primarily utilising it for the continued expansion in China for MABR sales, which include capital expenditures as well as working capital for an additional module manufacturing line and two new final product assembly facilities.

· The company would also use funds for cost optimisation as well as for general working capital for the business.

The stock of FLC closed the day’s trading at $0.405 per share on 31st December 2019, with a rise of 6.173% as compared to its previous closing price. The company has a market capitalisation of $252.98 million as on 31st December 2019. The total outstanding shares of the company stood at 624.64 million, and its 52-week low and high is $0.300 and $0.630, respectively. The company has given a total return of -13.83% and -10.00% in the time period of three months and six months, respectively.


Disclaimer

This website is a service of Kalkine Media Pty. Ltd. A.C.N. 629 651 672. The website has been prepared for informational purposes only and is not intended to be used as a complete source of information on any particular company. Kalkine Media does not in any way endorse or recommend individuals, products or services that may be discussed on this site. Our publications are NOT a solicitation or recommendation to buy, sell or hold. We are neither licensed nor qualified to provide investment advice.

· As per the key personnel of the company, the overall traffic performance across 2019 had been fueled by international passenger growth and the company experienced this trend in November 2019 as well.

· The company experienced a fall of 0.3% in domestic performance as compared to pcp, which was affected by decreased domestic seat capacity. While, SYD witnessed a growth of 1.2% on international front.

On the financial front, the company happens to be in decent position, where it experienced a growth of 4.1% IN EBITDA in the results of half-year ended 30th June 2019. For the same period, the company witnessed a rise of 3.4% compared to the pcp, which has been resulted by international passenger growth as well as a solid performance from the retail business.

The company is expecting three-year capex guidance in the range of $0.9 million-$1.1 billion for the 2019- 2021 period. The company would continue to enhance its infrastructure as well as it would make investments for capacity growth for the future.

Also Read: Growth Story for Sydney Airport.

The stock of SYD closed the day’s trading at $8.660 per share on 31st December 2019, with a fall of 1.479% as compared to its previous closing price. The company has a market capitalisation of $19.85 billion as on 31st December 2019. The total outstanding shares of the company stood at 2.26 billion, and its 52-week low and high is $6.370 and $9.300, respectively. The company has given a total return of 9.46% and 8.79% in the time period of three months and six months, respectively.

Transurban Group (ASX: TCL)

Australia based Transurban Group (ASX: TCL) is into the development, operation and other activities related to toll road assets. The company through a release dated 10th December 2019 announced that $403 million of non-recourse debt has been successfully raised by Hills M2 Motorway (owned 100% by TCL) via a new bank facility with a tenor of twelve months.

The proceeds of the new bank facility would primarily be utllised by Hills M2 for refinancing an existing bank facility, which would be maturing in March 2020.

A look at Interim Distribution

· For the six months ended 31st December 2019, the company would be paying a distribution amounting to 31.0 cents per stapled security.

· The amount of distribution comprises of 29.0 cent from Transurban Holding Trust and controlled entities and a 2.0 cent fully franked dividend from Transurban Holdings Limited and controlled entities.

· On the outlook front, the company is expecting distributions of 62.0 cents in FY20, which includes the distribution of 31.0 cents for the six months ending 31 December 2019.

In another update, the company announced that Neil Gregory Chatfield, one of its directors, has made a change to his holdings in the company by disposing 10,000 stapled securities at $15.15 per security on 15th November 2019. The director, post change, holds 65,867 stapled securities.

The stock of TCL closed the day’s trading session at $14.91 per share on 31st December 2019, with a fall of 1.908% as compared to its previous closing price. The company has a market capitalisation of $41.54 billion as on 31st December 2019. The total outstanding shares of the company stood at 2.73 billion, and its 52-week low and high is $11.500 and $16.060, respectively. The company has given a total return of 3.47% and 3.40% in the time period of three months and six months, respectively.

Fluence Corporation Limited (ASX: FLC)

With operations in North and South America, Middle East and Europe, Fluence Corporation Limited (ASX: FLC) is engaged in the delivery of innovative, cost-effective decentralised water solutions for business and communities.

The company has recently, through a release dated 30th December 2019 announced that it has secured a follow-on AspiralTM order with a value of over US$3 million from Aerospace Kaitian Environmental Technology Co., Ltd. This first bulk order for a total of 15 wastewater treatment plants comprises of 27 Aspiral™ L3 units and 18 Aspiral™ L4 units, which would collectively serve more than a dozen towns, as well as rural townships in Anhui Province in China.

However, the company is anticipating the shipments to commence on an immediate basis, and it would extend into early 2020.

Share Purchase Plan

· The company has recently completed its SPP or Share Purchase Plan and raised more than $2.3 million (before costs). When it comes to the use of proceeds from SPP in combination with $36.0 million raised from the recent share placement, FLC would be primarily utilising it for the continued expansion in China for MABR sales, which include capital expenditures as well as working capital for an additional module manufacturing line and two new final product assembly facilities.

· The company would also use funds for cost optimisation as well as for general working capital for the business.

The stock of FLC closed the day’s trading at $0.405 per share on 31st December 2019, with a rise of 6.173% as compared to its previous closing price. The company has a market capitalisation of $252.98 million as on 31st December 2019. The total outstanding shares of the company stood at 624.64 million, and its 52-week low and high is $0.300 and $0.630, respectively. The company has given a total return of -13.83% and -10.00% in the time period of three months and six months, respectively.


Disclaimer

This website is a service of Kalkine Media Pty. Ltd. A.C.N. 629 651 672. The website has been prepared for informational purposes only and is not intended to be used as a complete source of information on any particular company. Kalkine Media does not in any way endorse or recommend individuals, products or services that may be discussed on this site. Our publications are NOT a solicitation or recommendation to buy, sell or hold. We are neither licensed nor qualified to provide investment advice.

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