Australia…One Hour In…ASX200 Down 5 Points

By Scott Phillips | More Articles by Scott Phillips

ASX200 down 5 points (0.1%) to 6126.

– AGL (-9%); FY profit rose by 12%, but reiterated that headwinds are increasing. Sees FY21 about $150m below estimates. Said it “intends” to pay Special Divs in FY21 and FY22.

– AMP (+11%); Soft 1H result. Profit down 52% but it was all pre-guided. Will pay a 10c Special Div and $200m buyback. The CEO acknowledges the culture problems.

– Breville Group (-6%); 1H earnings beat estimates. Expects FY21 sales to continue to be strong due to stay at home and C-19 but didn’t give FY21 guidance.

– Evolution (+3%); FY profit up 38% but forecast lower production of gold. Div 9c vs 6c last year.

– Flight Centre (+4%); expects to report an FY20 underlying A$475m-A$525m loss, mainly due to C-19 related travel restrictions. Market was expecting a bit worse.

– Goodman Group (+4%); FY profit +12.5%, ahead of guidance as it benefited from an acceleration in ecommerce due to COVID-19 which in turn powered demand for large logistics facilities.

– Karoon Gas (+4%); has been issued with new environmental operational licenses by the Brazilian Institute of the Environment and Renewable Natural Resources.

– Lynas (+3%); signs agreement with Japan Australia Rare Earths to work together on additional funding solutions related to the continued development of Lynas business, particularly in relation to Heavy Rare Earths separation.

– Premier Investments (+9%); trading update. Sees FY20 EBIT between A$184.8m-A$185.8m, up from A$167.3m in FY19.

– QBE (+6%); 1H US$712m loss after taking a hit from Covid-19 related costs and an investment loss due to market volatility. Div 4c vs 25c last year. Market excited by “a lower attritional claims ratio and premium price increases point to underlying business improvements.”

– Telstra (-5%); FY result in line with guidance, but at the lower end. Profit fell 16% as the NBN continued to eat into earnings and mobile revenues fell. Outlook is below consensus and co has lowered ROIC target.

– Treasury Wines (+11%); FY profit fell by 25%, reflecting challenging conditions in the US wine market and C19. Didn’t give guidance. Market excited about the fact that demand form China is showing positive signs.

– Woodside (+0.1%); reported a deep 1H loss as it absorbed a US$3.92bn impairment of its oil and gas assets triggered by low energy prices and the impact of C19.

Scott Phillips

About Scott Phillips

Scott has over 35 years experience in Australian equities, starting as a “chalkie” and trader on the Stock Exchange Trading Floor and spending the last 25 years advising and trading for International Institutions. He has been an Executive Director at JPMorgan and Nomura, a Governor of the Australian Stock Exchange and was recently awarded a Lifetime Achievment award by the Australian Stockbrokers Association.

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