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Today, S&P/ASX 200 Industrials (Sector) index is up by around 91 points. Many industrial stocks including, Atlas Arteria, Austal Limited, Monadelphous Group Limited and Bingo Limited witnessed substantial improvement in their share price during today’s trading. Let’s take a closer look at these stocks and their recent updates.
Atlas Arteria (ASX: ALX)
Global toll road operator, Atlas Arteria is currently trading near to its 52 weeks high price. In the last one year, ALX stock price is increased by over 15% on ASX. For the 12 months ended 31 December 2019 (FY 2019), ALX reported a net profit after tax of $178.2 million, up 9% on last year, driven by operational performance and a low-cost financing structure. Over the period, the company saw continued strong revenue growth driven by traffic growth and toll increases.
The company has recently completed an APRR transaction following which, it now owns 31.14% indirect interest in APRR. Last year APRR was focussed on improving its customer experience and enhancing its operational performance. Reduced operating costs and finance costs contributed to strong profitability. Last year, Operating revenue from APRR was up 2.9% to €2,611.0 million and EBITDA was up 3.6% to €1,942.0 million. It is to be noted that APRR currently maintains an A- rating from S&P and Fitch and has sufficient balance sheet flexibility to fund the RCEA project which is expected to receive final approvals in the first quarter of 2020.
By AEDT 3:20 PM, ALX stock was trading at a market price of $8.220, up by 4.051% intraday, with a market cap of around $6.94 billion.
Austal Limited (ASX: ASB)
Australia's global shipbuilder, Austal Limited has released its updated investor presentation in which it has provided an additional update on coronavirus impact. The company has stated that it has no direct exposure to main contractors in China although potentially some limited exposure lower in the supply chain but no obvious impact to date and considered lower risk.
The company has warned that aluminium prices in Austal’s supply chain have been affected by China production slowdown but it has 2 years of production ordered at fixed prices so no impact in medium term. Austal has assured that its firm contracts from the US Navy are unlikely to be affected by virus issues. Further, the company’s operations in Philippines and Vietnam are also unaffected by virus issues.
The company also provided its FY20 outlook which is as follows:
- Group EBIT upgraded to no less than $110 million
- Group Revenue maintained at no less than $1.9 billion
- US Shipbuilding EBIT margin range maintained at 7.5-8.5%
By AEDT 2:26 PM, Austal Limited stock was trading at a price of $3.580, up 3.768% intraday. In the past three months, the stock price has declined by around 20% on ASX.
Monadelphous Group Limited (ASX: MND)
Leading Australian engineering group, Monadelphous Group Limited (ASX:MND) recently released its first half year results of FY20 in which it reported revenue of $852.0 million, a 2.6% increase on the prior corresponding period and up 9.5% on the second half of FY19, reflecting a strong performance from the Company’s Maintenance and Industrial Services division, which achieved a record half year revenue of $584.5 million, up 16% on pcp.
For the half year period, the company declared an interim dividend of 22 cents per share fully franked.
With respect to its productivity and innovation, the company established a virtual reality (VR) room in the Perth office, facilitating the evaluation of virtual reality technology, particularly for 3D model interpretation. Further, the company has also obtained a remotely piloted aircraft operator’s certificate (ReOC) which enables the use of drone technology commercially across the organisation to improve the productivity and safety of current scopes of work.
Reflecting the improving outlook and confidence in the resources sector, the Engineering Construction division successfully secured contracts with a combined value of approximately $500 million since the beginning of FY20. These include:
- a major construction contract with Rio Tinto associated with the West Angelas Deposits C and D Project, valued in excess of $100 million;
- a major construction contract at Albemarle Lithium’s new Kemerton lithium hydroxide plant in the southwest of Western Australia; and
- a contract with thyssenkrupp Industrial Solutions (Australia) for the construction of a reclaimer and two stackers at BHP’s South Flank Project.
By AEDT 2:26 PM, MND’ stock is trading at $15.0, up 6.383% intraday, close to its 52 weeks low of $13.730.
Bingo Industries Limited (ASX: BIN)
Recycling and waste management company, Bingo Industries Limited recently announced its half year results for the six months ended 31 December 2019 wherein it reported a net revenue of $271.2 million up 50.7% pcp; and underlying EBITDA of $78.8 million, up 67.9% on pcp. Moreover, the company increased its EBITDA margin by nearly 700 basis points to 33%, while maintaining a robust balance sheet.
During the period, the company made some great progress on its redevelopment program, Construction is progressing well on MPC 2 at Eastern Creek and the company is starting to benefit from the synergies associated with the integration of DADI.
The company’s Board has decided to pay an interim dividend of 2.2 cents per share, up 28% on pcp, representing a payout ratio of 38%. In FY20, the company expects to achieve solid year-on-year growth supported by its West Melbourne recycling facility, DADI operations and Patons Lane recycling facility. The company has also reaffirmed its FY20 Underlying EBITDA guidance of $159 million-$164 million.
By AEDY 3:11 PM, Bingo’s stock price was at $2.850, up by 4.015% intraday, with a market cap of around $1.79 billion. Notably, in the past six months, the stock price has increased by 22.32% on ASX.
