The COVID-19 pandemic has generated unprecedented uncertainty around the world, affecting the Australian economy as well. This global health issue has led the people to stay indoors, in order to restrict the spread of pandemic. However, some countries have now started providing an ease to the restrictions.
Given the backdrop, let us now have a look at some of the ASX listed stocks, with their recent market updates amid coronavirus crisis:
Worley Limited (ASX: WOR) mainly provides professional services to helps its customers meet the changing requirements pertaining to the energy, chemical and resources.
Director’s Change of Interest
On 29 April, WOR notified the market that one of its directors, Sharon Lee Warburton changed her interest on 28 April. Post the change, the director now holds 22.5 k number of shares at a value of $87.298.78.
Response to Market Conditions
The Company recently notified the market with the response to market conditions caused by COVID-19, wherein, it stated that the safety and wellbeing of its people was its priority.
Following are the business response update amid the present economic situation:
- WOR has adjusted its operational and support cost structures, as well as postponed all non-essential capital expenditure.
- Worley has decreased headcount by 5% between 31 January and 31 March 2020, mainly in lower margin construction related activities.
- The Company has a steady monetary stance with an aggregate liquidity standing at $1.36 billion (as on 31 December 2019). WOR previously announced that it has received credit approval in order to extend working capital of circa $480 million for an additional 12 months. In order to strengthen the liquidity position, WOR has added new debt facilities of $465 million.
- WOR is diligently supervising developments and prospects in each region where it functions.
Do Read: How these energy players are performing?
At the close of trading session on 29th April 2020, the stock of WOR stood at $7.67 per share with a rise of 9.259% as compared to its previous closing price. During the time frame of three months and six months, the stock of WOR has provided shareholders the returns of -54.71% and -49.09%, respectively.
Wesfarmers Limited (ASX: WES) has a diversified business including retail operations covering home improvement and office supplies, general merchandise, etc.
Measures to Limit COVID-19 Spread: Wesfarmers recently stated through a release that it is devoted to support the government and community efforts to restrict the spread of COVID-19 pandemic. WES added that its retail businesses have made progress in improving their digital offers while responding to the significant rise in online sales. It also consists of the following:
- Execution of Drive & Collect by Bunnings and Officeworks segment.
- Allowing zero contact carpark collection through consumers.
With respect to retail trading, the Company stated that its division Bunnings and Officeworks witnessed substantial increase in demand since both consumers and their family members spent more time period, carrying out activities like working, learning and relaxing at their respective houses. Thus, sales growth in Bunnings and Officeworks for Q3 FY20 and the first three weeks of April has increased to levels achieved in the 1H FY20.
The Company has undertaken numerous actions to further cement its balance sheet, which include the sale of a 5.2 % interest in Coles for pre-tax proceeds of approximately $1,060 million on 31st March 2020
At the close of trading session on 29th April 2020, the stock of WES stood at $37.490 per share with a fall of 0.636% as compared to its previous closing price. Within the time frame of three months and six months, the stock of WES has provided shareholders the returns of -14.87% and -7.98%, respectively.
Temple & Webster Group Ltd
Temple & Webster Group Ltd (ASX: TPW) is a leading online retailer of furniture and homewares in Australia. As a response to COVID-19, over 95% of its team, onshore and offshore, have been working from home since the starting of March, as mentioned in its recent update.
On the trading front, the Company stated that lately, the demand has shifted into its core categories throughout furniture and homewares. The month of April this year has witnessed significant rise in demand, with record numbers of new and repeat customers and revenue between 1 January 2020 to 24th April 2020 went up by 74% on YoY basis.
High Growth Strategy: The Company possesses strong financial position with profitable business, positive cash flow, capital light business model, as well as zero debt with a current cash level of around $20 million. For Longer term, the Company is committed to a high growth strategy in order to derive benefit of the structural shift towards online.
At the end of session on 29th April 2020, the stock of TPW ended at $3.810 per share with an increase of 2.973% against its previous closing price. During the span of three months and six months, the stock of TPW has provided shareholders the returns of 21.31% and 77.88%, respectively.
Growthpoint Properties Australia
Growthpoint Properties Australia (ASX: GOZ) provides spaces for people to thrive. It also makes investment in the commercial real estate space of Australia. The income of the group is drawn mainly from the investment made in offices and industrial properties.
During Q3 FY20 period, the Company negotiated 11 leases, reflecting 2.4% of portfolio income including the renewal of Linfox’s (fifth largest tenant of GOZ)) lease for five years. GOZ now has 1% of lease to expire in remaining part of FY20 and 5% in FY21.
No Debt Maturity Until FY22: The Company has a strong balance sheet and remains well within all its debt covenant limits. During the period, the Group’s gearing stood at 32.7%, which was below the bottom of its target range 35% - 45%. GOZ possesses substantial liquidity from undrawn debt lines of $235 million and $41 million of cash on its balance sheet. It has no debt maturing until FY22.
During the COVID-19 pandemic, the National Cabinet has announced a commercial tenancy code of conduct to assist commercial landlords and small and medium enterprise (SME) tenants negotiate amendments to leasing arrangements. It applies to tenants whose turnover is less than $50 million who are also eligible for the JobKeeper program of the Australian Government.
At the close of trading session on 29th April 2020, the stock of GOZ stood at $2.930 per share with a rise of 0.687% as compared to its previous closing price. During the time frame of three months and six months, the stock of GOZ has provided shareholders the returns of -33.41% and -32.17%, respectively.
PointsBet Holdings Limited
PointsBet Holdings Limited (ASX: PBH) is a corporate bookmaker having operations in Australia and the USA. The Company recently notified the market with the operational and financial performance for Q3 FY20 and outlined the following:
- PBH’s Australian trading business has attained a record Net Win amounting to $15.5 million, reflecting a rise of 89.8% from pcp.
- Despite the suspension of major US sports from 12 March 2020, and the inability to benefit from the NCAA basketball tournament, the US business has obtained excellent Net Win performance of $3.3 million.
The Company had $149.4 million of corporate cash, the majority of which is held in USD, as at 31 March 2020 and PBH has no borrowings.
At the close of trading session on 29th April 2020, the stock of PBH stood at $3.990 per share with a rise of 6.4% as compared to its previous closing price. During the span of three months and six months, the stock of PBH has provided shareholders the returns of -35.79% and -7.18%, respectively.
There is no investor left unperturbed with the ongoing trade conflicts between US-China and the devastating bushfire in Australia.
Are you wondering if the year 2020 might not have taken the right start? Dividend stocks could be the answer to that question.
As interest rates in Australia are already at record low levels, find out which dividend stocks are viewed as the most attractive investment opportunity in the current scenario in our report.