How will NZX-50 listed AIA, FPH, MEL perform in 2021?

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How will NZX-50 listed AIA, FPH, MEL perform in 2021?

 How will NZX-50 listed AIA, FPH, MEL perform in 2021?

NZX-50 lists some of the best performing companies of New Zealand. The index is multi-sectoral and represents the entire market. It is an important index, which reflects the emerging trends in the economy.

Certain companies on the NZX 50 performed well throughout the year, or picked up in the second half of the year, due to their strong fundamentals or nature of their business. Some Companies were impacted badly due to COVID-19 pandemic.

Let us look at the performance of three NZX-50 listed companies.

Auckland International Airport Limited

Auckland International Airport (NZX:AIA), which is usually a heavyweight stock, was under pressure due to the COVID-19-induced  travel restrictions. The year 2020 was unprecedented for the stock as international travel almost came to a halt. 

Throughout the year, there were travel restrictions. Its yearly update released recently reflected a month-on-month decline in international traffic. In the first few months due to Lockdown 4 and 3, both domestic and international traffic was down but in the later months, due to easing of Lockdown from Level 3 to 1, the domestic traffic in NZ picked up.

AIA’s last year’s monthly traffic update circulated on December 16, 2020, reflected a significant decline in international traffic.

Must Read: Auckland International Airport (NZX:AIA) total passenger volumes fall, while domestic numbers rise in December 2020

For October 2020, the international passenger traffic was almost negligible, as it declined by 97.2%, and domestic declined by 35%.

The November report also revealed similar numbers. Total volumes shrank by 69%, international traffic was down by 97%, and domestic was down by 38%.

AIA could recover its operating cost through its properties, but it is the international travelers that give a rise in cash flows to the airport through retail and duty-free revenues.

According to a report, airports across the globe, earn three times more revenue from international passengers than domestic travelers and other sources.

Fiscal 2021 is also not expected to see a recovery due to fresh travel restrictions on the fear of new strains of COVID-19.

Its stock was trading down by 1.52% at NZ$7.140 at the time of writing this article on 28 January 2021.

Fisher and Paykel Healthcare Corporation Ltd

Fisher and Paykel Healthcare Corporation Ltd (NZX:FPH) had a spectacular performance in 2020. The COVID-19 pandemic has proved to be a boon for the Company due to the healthcare products it provides. It is a leading designer and manufacturer of products which are used in respiratory care, and due to that its revenue was up 73% in the last nine months.

All the segments saw a huge increase last year. Products used in acute respiratory care saw a huge jump due to the increased COVID-19-related hospitalisations. The increase operating revenues for this product was to the tune of 113%. While hospital consummables grew by 54%, hospital hardware jumped by 446%.

The Company revised upwards its guidance for the rest of FY21.

Must Read: COVID-19 proved a breath of fresh air for Fisher and Paykel, revenue soars

In its announcement on January 24, 2021, the company said that the net profit and revenues for the rest of FY21 was expected to be higher than what was projected in the November guidance. In November, the Company had projected the full-year profit between $400M and $415M.

The Company is also increasing capacities on the expectations of increased demand. For that, the Company plans to start a third unit in Mexico shortly. Lewis Gradon, the CEO, said that the biggest task for FPH was to build its supplies to meet the demand.

The company’s stock was also down 2.39% at NZ$34.360 at the time of writing this article on 28 January 2021.

Meridien Energy Limited

Dual-listed Meridien Energy Limited (NZX:MEL) is a green energy company, which also showed a strong performance in 2020. Its stock was performing well on NZX. It rose 69% in the last three months of 2020.

Must Read: Meridian Energy (NZX:MEL) monthly operating report for December 2020

The growth in the share price reflects investors’ confidence as the Company performed well on the stock market on the wake of improved sales across its segments, including residential, small and medium industries, large businesses, and corporate and agriculture. Its sales have clocked a 9.8%, 12.6%, 3.3%, 12.1% and 15% jump across all sectors, respectively.

The stock was down 3.35% at NZ$7.49 at the time of writing this article on 28 January 2021.


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