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The industrial sector comprises of the companies that manufacture and sell machinery, equipment and supplies that are primarily used to manufacture goods, which are generally sold to consumers.
The industrial sector is divided into two parts: heavy industry and light industry. Generally, this sector changes raw materials into final products.
Some examples of industries in the industrial sector are:
- Chemical industry
- Consumer electronics
- Industrial equipment
- Automobile industry
- Steel Industry
Let’s look at four industrial sector stocks and their recent results.
BINGO Industries Limited
BINGO Industries Limited (ASX:BIN) is engaged in providing waste management and recycling and solutions across commercial and industrial (C&I) and building and demolition (B&D) waste sources with capabilities across processing, waste collections, recycling and separation of components from industrial waste.
BINGO Delivers Solid First Half Results
BINGO Industries Limited announced its half year results for the six months ended 31 December 2019. Net revenue was up 50.7% to $271.2 million and underlying EBITDA was up 67.9% to $78.8 million. Statutory EPS was up 132% from 2.5 cents to 5.8 cents.
- The company expects to achieve solid YoY growth in FY20 underpinned by a full year contribution from West Melbourne recycling facility, DADI operations and Patons Lane recycling facility now fully operational as in February 2020;
- Group EBITDA margin has improved well above longer-term group average of ~30%, however some slight moderation in margin is expected in 2H FY20;
- Headwinds in multi-dwelling residential construction are expected to continue in FY20 with improvement forecast for CY21.
Performance Highlights (Source: Company’s Report)
Stock Performance
The stock of BIN closed the day’s trading at $3.170 per share on 20th February 2020, down by 0.938% from its previous closing price. The company has a market capitalisation of $2.09 billion as on 20th February 2020. The total outstanding shares of the company stood at 653.81 million, and its 52-week low and high are $1.170 and $3.470, respectively. The stock of the company has given a total return of 4.36% and 29.58% in the time period of 3 months and 6 months, respectively.
Boral Limited
Boral Limited (ASX:BLD) is a company that manufactures and supplies construction and building in Australia, the USA and Asia.
Boral’s First Half Results In-Line with Guidance
For the half year ended 31 December 2019, the company reported total revenue of $2,989.1 million, flat on YoY basis. However, Net profit before significant items decreased by 18.7% to $156.3 million. In Australia segment, revenue decreased by 2% to $1,752 million with higher contribution from Asphalt, primarily offset by lower revenues in Concrete and Building Products. The earnings were impacted by 7% lower volumes of concrete and one-off costs of ~$11 million due to business interruption.
Financial Performance (Source: Company’s Report)
The company expects its FY2020 EBITDA to be down relative to FY2019, with lower reported EBITDA in all three divisions. The company expects NPAT in the range of around $320 million–$340 million for FY2020, which compares with a restated FY2019 NPAT of $420 million after adjusting for Windows misreporting.
Stock Performance
The stock of BLD closed the day’s trading at $4.830 per share on 20th February 2020, up by 0.207% from its previous closing price. The company has a market capitalisation of $5.65 billion as on 20th February 2020. The total outstanding shares of the company stood at 1.17 billion, and its 52-week low and high are $3.930 and $5.735, respectively. The stock of the company has given a total return of -4.17% and -3.60% in the time period of 3 months and 6 months, respectively.
Sydney Airport (ASX: SYD)
Sydney Airport Reports its FY19 Results
In 2019, Sydney Airport served 44.4 million passengers, up by 0.1% compared to the prior year, exemplifying the diversity and strength of the business in difficult conditions of the market. Despite of flat passenger growth, the company reported growth of 3% in revenues and 4% in EBITDA.
- Net operating receipts (NOR) up 5.2% on the prior corresponding period (pcp) and distribution paid of 39.0 cents per stapled security for FY2019, fully covered by NOR across the full year;
- Through tightly controlled costs, total controllable operating expenses decreased by 1.6% on pcp;
- The overall traffic was driven by international passenger growth of 1.1% and a decline in domestic passengers of 0.5%.
Segmental Revenue
- Aeronautical segment up 2.4% reflecting international passenger growth and continued capital investment in aeronautical infrastructure;
- Retail segment up 5.0%, after the escalation in the Duty Free and other retail contracts;
- Property and car rental up 5.5%, including the delivery of 78 additional Ibis Budget rooms in first half of 2019;
- Car parking and ground transport declined by 0.1%, reflecting lower domestic passengers offset by the contribution from T3 valet parking from 1 July 2019.
Stock Performance
The stock of SYD closed the day’s trading at $8.300 per share on 20th February 2020, down by 1.659% from its previous closing price. The company has a market capitalisation of $19.07 billion as on 20th February 2020. The total outstanding shares of the company stood at 2.26 billion, and its 52-week low and high are $6.870 and $9.300, respectively. The stock of the company has given a total return of -6.43% and 2.30% in the time period of 3 months and 6 months, respectively.
NRW Holdings Limited (ASX: NWH)
NRW Holdings Limited is a diversified and leading provider of contract services to the infrastructure and resources sectors in Australia with major operations in South Australia, New South Wales, Western Australia, Victoria and Queensland.
NRW Reports Double Digit Growth in Revenues in 1H FY20
The company reported revenue of $808.7 million, an increase of 55% compared to the prior corresponding period. Comparative EBITDA increased by 27% on pcp to $94.6 million. Strong cash conversion resulted in cash holdings to increase to $122.5 million from $65.0 million at 30 June 2019. Net Debt increased due to assumption of BGC Contracting asset finance debt and gearing increased to 37.8%.
Stock Performance
The stock of NWH closed the day’s trading at $2.970 per share on 20th February 2020, down by 1.656% from its previous closing price. The company has a market capitalisation of $1.29 billion as on 20th February 2020 with an annual dividend yield of 1.32%. Its 52-week low and high are $1.950 and $3.450, respectively. The stock has given a total return of 12.69% and 41.78% in the time period of 3 months and 6 months, respectively.
