Latest news on some of the 50 Leaders

NATIONAL AUSTRALIA BANK

Price: $23.33

Analyst Rating: Buy

Comments: Agreed to sell MLC Wealth to IOOF Holdings for $1,440 million with completion expected to occur before the middle of calendar 2021.
Fiscal 2020 net profit down 37% to $3,710 million and the fully franked dividend was cut from 166.0 cents to 60.0 cents.

SCENTRE GROUP

Price: $2.83

Analyst Rating: Sell

Comments: Management’s current intention is to declare a final distribution for calendar 2020.

WESTPAC BANKING CORPORATION

Price: $20.45

Analyst Rating: Hold

Comments: The company has agreed to pay a civil penalty of $1.3 billion for contraventions of the Anti-Money Laundering and CounterTerrorism and Financing Act.

Fiscal 2020 net profit down 62% to $2,608 million and the fully franked dividend was cut from 174.0 cents to 31.0 cents.

BHP GROUP

Price: $38.30

Analyst Rating: Neutral

Comments: Agreed to acquire an additional 28% working interest in Shenzi, which is a six-lease oil development in the deepwater Gulf of Mexico, for US$505 million.

AGL ENERGY

Price: $13.46

Analyst Rating: Neutral

Comments: At the AGM, management reiterated the fiscal 2021 net profit guidance of between $560 million and $660 million, which is down between 19% and 31% from fiscal 2020.

AMPOL

Price: $30.10

Analyst Rating: Neutral/High Risk

Comments: The group is undertaking a comprehensive review of the Lytton refinery to determine the best operating model over the medium term.

September quarter 2020 net profit down 74% to $24 million.

Completed the convenience retail property transaction for net cash proceeds of $635 million and announced a $300 million off-market buy-back.

NEWCREST MINING

Price: $26.60

Analyst Rating: Buy

Comments: Management announced approval of the Cadia expansion and Lihir recovery improvement projects for combined capital expenditure of US$236 million.

FORTESCUE METALS GROUP

Price: $18.09

Analyst Rating: Hold

Comments: Management announced the on-market buyback will now continue for an unlimited duration subject to the provision that the company cannot buy back more than 10% of its voting shares within the span of any twelve month period.

TELSTRA CORPORATION

Price: $3.12

Analyst Rating: N/A

Comments: At the AGM, the Board said it “is prepared to temporarily exceed our capital management framework (in order to) maintain a 16 cents dividend”.

The group is proposing a restructure to create three separate legal entities within the Telstra Group ─ InfraCo Fixed, InfraCo Towers and ServeCo.

AURIZON HOLDINGS

Price: $4.17

Analyst Rating: Buy

Comments: At the AGM, management reiterated the fiscal 2021 guidance of an EBIT decline between 3% and 9%.

CSL

Price: $318.58

Analyst Rating: Neutral

Comments: At the AGM, management gave fiscal 2021 net profit guidance of between US$2,170 million and US$2,265 million implying growth of 3% to 8% at constant currency.

JAMES HARDIE INDUSTRIES

Price: $39.88

Analyst Rating: Neutral

Comments: Management revised the fiscal 2021 net profit guidance range from between US$330 million and US$390 million to between US$380 million and US$420 million.

Interim net profit up 11% to US$209.8 million accompanied by a nil dividend.

ANZ BANKING GROUP

Price: $22.97

Analyst Rating: Buy

Comments: Fiscal 2020 net profit down 42% to $3,758 million and the dividend was cut from 160.0 cents to 60.0 cents (fully franked).

AMP

Price: $1.73

Analyst Rating: Buy

Comments: The group has received an indicative, nonbinding, conditional proposal from Ares Management Corporation, a US-based company, to acquire 100% of the shares in AMP by way of a scheme of arrangement for an implied value of $1.85.

The group also said it has received other significant interest in its assets and businesses and is assessing a range of options.

GOODMAN GROUP

Price: $18.50

Analyst Rating: Neutral

Comments: Management reiterated the EPS growth guidance of 9% for fiscal 2021.

MACQUARIE GROUP

Price: $139.61

Analyst Rating: Buy

Comments: Interim net profit down 32% to $985 million and the 40% franked dividend was cut from $2.50 to $1.35.

AMCOR

Price: $15.70

Analyst Rating: Buy

Comments: September quarter 2020 net profit up 13% to US$247 million accompanied by a nil franked dividend of A16.55 cents.

COMMONWEALTH BANK

Price: $81.16

Analyst Rating: Buy

Comments: September quarter 2020 net profit down 16% to $1.8 billion.

ARISTOCRAT LEISURE

Price: $33.89

Analyst Rating: Buy

Comments: Fiscal 2020 net profit down 47% to $476.6 million and the fully franked dividend was cut from 56.0 cents to 10.0 cents.

ORICA

Price: $17.24

Analyst Rating: Buy

Comments: Fiscal 2020 net profit down 20% to $299.3 million and the dividend was cut from 55.0 cents to 33.0 cents (nil franked).

INSURANCE AUSTRALIA GROUP

Price: $5.25

Analyst Rating: Hold

Comments: Announced a provision of $865 million after tax for COVID-19 business interruption claims, and a $750 million equity capital raising.

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If you’re interested in learning about these investment opportunities in the context of your portfolio, get in touch with your Bell Potter adviser. Alternatively, call 1300 023 557 to organise an obligation free discussion with one of our experienced advisers.
Authored by Peter Quinton – Head of Research Services at Bell Potter Securities, November 2020
Important Disclaimer—This may affect your legal rights: Because this document has been prepared without consideration of any specific client’s financial situation, particular needs and investment objectives, a Bell Potter Securities Limited investment adviser (or the financial services licensee, or the proper authority of such licensee, who has provided you with this report by arrangement with Bell Potter Securities Limited) should be consulted before any investment decision is made. While this document is based on the information from sources which are considered reliable, Bell Potter Securities Limited, its directors, employees and consultants do not represent, warrant or guarantee, expressly or impliedly, that the information contained in this document is complete or accurate. Nor does Bell Potter Securities Limited accept any responsibility to inform you of any matter that subsequently comes to its notice, which may affect any of the information contained in this document. This document is a private communication to clients and is not intended for public circulation or for the use of any third party, without the prior approval of Bell Potter Securities Limited. In the USA and the UK this research is only for institutional investors. It is not for release, publication or distribution in whole or in part to any persons in the two specified countries. This is general investment advice only and does not constitute advice to any person.
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