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The Australian market is currently going through a challenging period. The bloodbath in the stock market is not ending due to the global coronavirus outbreak and recent bushfire. Most of the sectors in the market, by the end of the trading session are in red, including S&P/ASX 200 Industrials (Sector), which closed at 6,451.7 with a decline of 35.8 points on 2nd March 2020. However, on 3 March 2020, the index was trading at 6,542.3 points, rising by 1.27% (at AEDT 2:50 PM).
In the following article, we will look at the five industrials sector companies with their recent updates:
Phoslock Environmental Technologies Limited (ASX: PET)
An Australian entity Phoslock Environmental Technologies Limited (ASX: PET) provides water treatment products, that aids in resolving issues related to the quality of water, internationally and started trading publicly in 2002.
Revenue up by 32% in FY2019
Recently, the company updated the market with the operational and financial performance for the full year ended 31st December 2019, wherein it outlined the following:
· Revenue for the said period stood at $25.1 million with a rise of 32% as compared to previous year with gross profit margin of 54.7%.
· The company reported net profit after tax amounting to $3.0 million.
· Phoslock managed to finish the year with nil debt, cash balance of $15 million, $17 million debtors, inventories amounting to $2.3 million and Net Assets of $30.2 million.
· On China region front, the company re-opened Changxing factory, on 15 February, while the production restarted from 17th February 2020. Moreover, it has recently transported four containers of Phoslock® to the Shanghai export port.
For FY20, the company is expecting revenue in the ambit of $50 million - $70 million, a rise of 100% over FY19. The company possesses current project pipeline amounting to $380 million, comprising of $130 million of international projects and $250 million in China
The stock of PET was trading at $0.63, with a rise of 5.882% (at AEDT 2:48 PM) as on 3rd March 2020. The market capitalisation of the stock stands at $336.17 million. The stock has delivered returns of -30.81% and -54.18% during the last three months and six months, respectively.
CIMIC Group Limited (ASX: CIM)
Australia based CIMIC Group Limited (ASX: CIM) offers construction, mining and operations and maintenance related services to the infrastructure.
New Contracts awarded to Group Companies
· In a recent release, it was mentioned that the government (south Australian) has chosen CPB Contractors for supplying 3 key projects as per the Port Wakefield to Port Augusta Regional Projects Alliance.
· CPB Contractors would deliver the Joy Baluch AM Bridge Duplication in Port Augusta; the Augusta Highway Planning Project located between Port Augusta and Port Wakefield as well as the Port Wakefield Overpass and Highway Duplication in partnership with the Department of Planning, Transport and Infrastructure, Aurecon Australasia and GHD.
· These projects would help CPB contractors to generate a revenue amounting to around $236.8 million.
In another update, the group mentioned that its entity UGL won contracts to provide turnarounds, project services and maintenance for its clients in the oil and gas sector, which would provide revenue support of around $450 million.
On the outlook front, subject to market conditions, the company is expecting NPAT in the vicinity of $810 million to $850 million for FY20. This guidance is underpinned by strong level of work in hand, as well as positive outlook throughout the Group’s core markets.
Moreover, the company is focused on sustaining a strong balance sheet, generating cash, and a rigorous approach to tendering and project delivery.
The stock of CIM was trading at $24.540, with a rise of 1.826% (at AEDT 2:46 PM) as on 3rd March 2020. The market capitalisation of the stock stands at $7.8 billion. The stock has delivered returns of -28.12% and -23.27% during the last three months and six months, respectively.
Transurban Group (ASX: TCL)
Transurban Group (ASX: TCL) operates and develops toll roads in the Australian cities like Sydney, Melbourne etc.
Recently, the company announced that The Vanguard Group, Inc. and its controlled entities have made change to their substantial holdings in Transurban Group on 21st February 2020 and the current voting power stands at 6.004% as compared to the previous voting power of 5.0002%.
Toll revenue rose by 10.8 percent in 1H20
Also, during 1H FY20, the company along with its construction partners have made major progress on delivering its project pipeline. For the period, proportional toll revenue witnessed a rise of 8.6% and reached $1,396 million. Proportional earnings before interest, tax, depreciation and amortisation (EBITDA) and before significant items amounted to $1,094 million, reflecting a rise of 9.5%.
For the half-year ended 31st December 2019, the company declared distribution amounting to 31.0 cents per share. The said distribution consists of 2.0 cps 100% franked distribution/dividend from Transurban Holdings Limited and controlled companies and a 29.0 distribution from Transurban Holding Trust and controlled entities. The company restated distribution guidance of 62.0 cents per share.
The stock of TCL was trading at $15.120, rising by 1.205 percent (at AEDT 2:45 PM) as on 3rd March 2020. The market capitalisation of the stock stands at $40.86 billion. The stock has delivered returns of -2.42% and -0.40% during the last three months and six months, respectively.
Clearvue Technologies Limited (ASX: CPV)
Clearvue Technologies Limited (ASX: CPV) is into research and development activities, which is applied to its world leading solar glass technology.
The company recently released its quarterly results for the period ended 31st December 2019:
During December 2019, the company inked an OEM Manufacturing Agreement with Jiangsu YY Windows and Curtain Wall System Co. Ltd in China.
During the period, the company also announced completion of product certification testing with UL and IEC. It also signed collaboration Agreement with ROOTS Sustainable Agricultural Technologies (ASX: ROO). At the end of quarter, the company possessed cash balance of around $1.8 million.
The stock of CPV was trading flat at $0.093 (at AEDT 2:43 PM) as on 3rd March 2020. The market capitalisation of the stock stands at $12.78 million. The stock has delivered returns of -52.31% and -53.50% during the last three months and six months, respectively.
Qantas Airways Limited (ASX: QAN)
Qantas Airways Limited (ASX: QAN) is engaged in the operations of global and local air transportation. The company recently announced that it is intending to buy-back $150 million of its shares, price of which is anticipated to be announced on 11th May 2020.
Strong earnings delivered in 1H 20 results
QAN notified on its results for the first half 2020 for the period closed 31 December last year. The highlights for the same are as follows:
· On the financial front, the company delivered strong earnings in a mixed market during 1H FY20 and reported underlying Profit Before Tax amounting to $771 million and a Statutory Profit Before Tax of $648 million. There was a fall of $4 million in underlying results.
· The fall mentioned above was due to elevated foreign exchange associated cost effects of $51 million. There was also a rise of $55 mn noted in operating costs from the transaction of domestic airport terminals. The fall was influenced from international freight weakness and disturbance in Hong Kong of $68 million.
· The Group managed to return an amount of $647 million to shareholders in the form of off-market share buy-back and dividends during 1H FY20.
The stock of QAN was trading flat at $5.310 (at AEDT 2:41 PM) as on 3rd March 2020. The market capitalisation of the stock stands at $7.92 billion. The stock has delivered returns of -27.46% and -11.20% during the last three months and six months, respectively.
