• Fisher & Paykel Healthcare (ASX:FPH) share price on watch after reporting huge profit growth

    A doctor or medical expert in COVID-19 protection flexes his muscle, indicating growth or strong share price movement in ASX medical, biotech and health companies

    The Fisher & Paykel Healthcare Corp Ltd (ASX: FPH) share price will be one to watch on Thursday.

    This follows the release of the medical device company’s full year results this morning.

    How did Fisher & Paykel Healthcare perform in FY 2021?

    Fisher & Paykel Healthcare was a very positive performer in FY 2021, delivering a record full year result.

    According to the release, for the 12 months ended 31 March, the company reported a 56% increase in operating revenue to NZ$1.97 billion. And thanks to margin expansion, the company’s net profit after tax jumped 82% to NZ$524 million.

    This compares very favourably to the guidance given with its half year results of revenue of ~NZ$1.72 billion and net profit after tax of NZ$400 million to NZ$415 million.

    What were the drivers of its growth?

    The key driver of its growth was its Hospital Product segment, which recorded an 87% increase in revenue to NZ$1.5 billion. This represents 76% of the company’s operating revenue.

    Fisher & Paykel Healthcare’s Managing Director and CEO, Lewis Gradon, commented: “The unprecedented result was driven by our Hospital product group, which includes Optiflow and Airvo systems used to deliver nasal high flow therapy. Sales of our Hospital hardware and consumables have continued to track COVID-19 hospitalisation surges in countries around the world,”

    “Although COVID-19 restrictions impacted sleep clinics and reduced OSA diagnosis rates, revenue for the Homecare product group was $466 million, an increase of 2% over the previous year, or 4% in constant currency,” added Gradon.

    Outlook

    Due to ongoing COVID-19 uncertainties, Fisher & Paykel Healthcare is unable to provide guidance for FY 2022.

    Mr Gradon explained: “We expect our Hospital and Homecare revenue for FY22 to be impacted by the number of COVID-19 related hospitalisations around the world. There is a wide range of scenarios for both the timing of a ‘return to normal’ and to what extent a return to normal includes COVID-19 endemic hospitalisations. It is unclear at this stage when and if other respiratory hospitalisations and surgical procedures will return to pre-COVID levels, or whether countries will increase their investment in healthcare infrastructure.”

    Though, the company has provided an update on current trading.

    It advised: “In the financial year so far, Hospital revenue continues to remain variable with higher volumes of Hospital hardware and consumables to locations with hospitalisation surges and an ongoing shift towards Optiflow nasal high flow therapy. OSA shows signs of recovery after a slower fourth quarter.”

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  • 2 ASX dividend shares that analysts rate as buys

    Three different hands against a blue backdrop signal thumbs up, indicating share price rise on the ASX market

    If you’re fed up with the low interest rates on offer with savings accounts and term deposits, then you might want to take a look at the countless dividend options the Australian share market has to offer.

    Two such ASX dividend shares that could help you beat low rates are listed below. Here’s what you need to know about them:

    Charter Hall Social Infrastructure REIT (ASX: CQE)

    The Charter Hall Social Infrastructure REIT could be a dividend share to consider. It is a real estate investment trust with a focus on social infrastructure. These are properties such as bus depots, police and justice services facilities, and childcare centres.

    The company notes that its properties have specialist use, limited competition, and low substitution risk. They also have very long tenancies, with its weighted average lease expiry (WALE) increasing to 14 years during the first half.

    Another positive during the half was its occupancy rate of 99.7%. This helped underpin a 14.1% increase in operating earnings to $29.1 million, allowing the board to upgrade its FY 2021 distribution guidance to 15.7 cents per unit. Based on the current Charter Hall Social Infrastructure share price, this represents a 4.6% yield.

    Goldman Sachs currently has a buy rating and $3.45 price target on its shares.

    Super Retail Group Ltd (ASX: SUL)

    Super Retail is another dividend share to look at. It is the company behind the BCF, Macpac, Rebel, and Super Cheap Auto retail brands.

    Thanks to a favourable redirection in consumer spending, Super Retail has been performing very positively in FY 2021. For example, during the first half, the company reported a 23% increase in half year sales to $1.78 billion and a 139% increase in underlying net profit after tax to $177.1 million.

    Goldman Sachs appears confident that there will be more of the same in the second half. In light of this, it is expecting the company to reward shareholders with a big dividend payment in FY 2021. Its analysts are forecasting an 81 cents per share fully franked dividend. Based on the latest Super Retail share price, this represents a 6.4% yield.

    The broker currently has a buy rating and $15.00 price target on its shares.

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  • 5 things to watch on the ASX 200 on Thursday

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    On Wednesday the S&P/ASX 200 Index (ASX: XJO) gave back its morning gains and dropped into the red. The benchmark index fell 0.3% to 7,092.5 points.

    Will the market be able to bounce back from this on Thursday? Here are five things to watch:

    ASX 200 expected to rise

    The Australian share market looks set to recover some of yesterday’s losses on Thursday. According to the latest SPI futures, the ASX 200 is expected to open the day 13 points or 0.2% higher this morning. This follows a reasonably positive night on Wall Street, which saw the Dow Jones trade flat, the S&P 500 rise 0.2%, and the Nasdaq climb 0.6%.

    Ramsay announces $1.8 billion acquisition

    The Ramsay Health Care Limited (ASX: RHC) share price will be one to watch after announcing plans to acquire Spire Healthcare for approximately 1 billion pounds (A$1,822 million). Spire is a London Stock Exchange-listed independent hospital group in the United Kingdom with a focus on the private patient market. It is also a leading provider of high-acuity care. Management believes the acquisition will be transformational for Ramsay’s UK business.

    Oil prices rise

    Energy producers such as Oil Search Ltd (ASX: OSH) and Woodside Petroleum Limited (ASX: WPL) will be on watch after oil prices pushed slightly higher overnight. According to Bloomberg, the WTI crude oil price is up 0.15% to US$66.16 a barrel and the Brent crude oil price has risen 0.25% to US$68.82 a barrel. Demand optimism gave prices a boost.

    Gold price softens

    Gold miners Evolution Mining Ltd (ASX: EVN) and Resolute Mining Limited (ASX: RSG) could trade lower today after the gold price softened overnight. According to CNBC, the spot gold price is down 0.1% to US$1,896.30 an ounce. The gold price slipped after the US dollar strengthened.

    Fisher & Paykel Healthcare results

    The Fisher & Paykel Healthcare Corp Ltd (ASX: FPH) share price could be on the move today when it hands in its full year results. The medical device company has previously guided to full year operating revenue of ~NZ$1.72 billion and net profit after tax of NZ$400 million to NZ$415 million. Analysts at Credit Suisse are forecasting a result well ahead of this guidance due largely to COVID-19 related sales.

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  • 2 blue chip ASX shares for a retirement portfolio

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    If you’re aiming to set yourself up for a comfortable retirement, a good way to do this is by having a reliable and growing passive income stream.

    Pleasingly, there are a number of quality ASX shares that could help you achieve this. Two to consider are listed below:

    Coles Group Ltd (ASX: COL)

    This supermarket operator could be a great core holding in a retirement portfolio. This is due to its defensive qualities, solid long term growth prospects, and its favourable dividend policy. The latter sees the company aim to distribute 80% to 90% of underlying profit to shareholders each year.

    One broker that believes Coles is a quality long term option is Goldman Sachs. It currently has a buy rating and $20.50 price target on its shares.

    Goldman is forecasting fully franked dividends of 62 cents per share in FY 2021 and then 66 cents per share and 73 cents per share in FY 2022 and FY 2023.

    Based on the latest Coles share price of $16.70, this will mean yields of 3.7%, 4%, and 4.4%, respectively, over the next three years.

    Telstra Corporation Ltd (ASX: TLS)

    Another option to consider for a retirement portfolio could be Telstra. This is due to its strong market position, generous dividend yield, and improving outlook.

    In respect to the latter, Telstra is targeting a return to growth in the near future and management appears confident that it can get there.

    Another positive is the company’s plan to split into three separate businesses. This is expected to simplify its operations and allow Telstra to take advantage of potential monetisation opportunities for non-core assets.

    Goldman also sees Telstra as a good option for investors. It currently has a buy rating and $4.00 price target on the company’s shares.

    The broker also continues to forecast the company paying a 16 cents per share fully franked dividend for the foreseeable future. Based on the current Telstra share price, this will mean a very attractive 4.65% dividend yield over the next 12 months.

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  • 2 quality ASX 200 blue chip shares analysts rate as buys

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    Are you wanting to buy some blue chip ASX 200 shares for your portfolio? If you are, then I would suggest you check out the two listed below.

    These quality companies could have the potential to grow at a solid rate over the next decade. As a result of this, they have been tipped as blue chips to buy. Here’s why:

    Cochlear Limited (ASX: COH)

    Cochlear is one of the world’s leading developers, manufacturers, and distributors of cochlear implantable devices for the hearing impaired.

    It has achieved this position thanks to its portfolio of world-class products which has been developed following its high level of investment in research and development (R&D) over the last decade. But management isn’t resting on its laurels. Each year it spends around 12% of its annual revenue on R&D activities to ensure that it remains ahead of the pack. This also creates a significant barrier to entry for any would-be competitors.

    Looking ahead, Cochlear appears well-placed for growth in the future thanks to its aforementioned portfolio and the ageing populations tailwind. With populations around the world ageing, demand for cochlear implantable devices is expected to grow strongly over the next couple of decades.

    Macquarie is a fan of the company. Its analysts currently have an outperform rating and $245.00 price target on Cochlear’s shares.

    Lendlease Group (ASX: LLC)

    Another blue chip ASX 200 share to look at is this global property and infrastructure company.

    Lendlease could be worth considering due to its major transformation. This transformation has seen the company divest its struggling engineering business and undertake a significant new strategy. This strategy is changing its earnings mix and business model to be more like Goodman Group (ASX: GMG). And given Goodman’s success over the last decade, this could be a smart move by management.

    One broker that is a fan of the strategy shift is Goldman Sachs. It currently has a buy rating and $16.54 price target on the company’s shares. Goldman feels that Lendlease’s shares could re-rate to higher multiples once it starts to demonstrate that it is executing its new strategy successfully.

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  • Up then down, what’s with the Fortescue (ASX:FMG) share price?

    asx share price bounce represented by investor being bumped along volatile price chart

    The Fortescue Metals Group Limited (ASX: FMG) share price staged an inspiring rally at the beginning of May as iron ore prices soared past US$200/tonne for the first time on record. Fortescue shares started the month at $22.48, before pushing to a 3-month high of $24.79 by 10 May. This was not too far off the company’s record all-time high of $26.40 seen in January this year.

    But the Fortescue share price quickly ran out of steam, giving back all its May gains to trade at $21.22 at Wednesday’s close.

    Why the pullback?

    There has been a steady stream of negative news from Australia’s largest iron ore customer, China, which could be one of the catalysts behind the recent weakness in the Fortescue share price.

    Negative news broke out last week when China announced plans to increase domestic iron ore production in response to “unreasonable restrictions” on trade with Australia.

    China also made moves to strengthen its domestic management of commodities to curb current “unreasonable” prices. This included investigations into malicious trading and suspicious pricing behaviours, adjustments on trade and stockpiling.

    Chinese iron ore futures plunge

    Last Monday, Yuan Talks reported that Chinese Government departments including the National Development and Reform Commission (NDRC), Ministry of Industry and Information Technology (MIIT), State Administration for Market Regulation (SAMR) and Chinese Securities Regulatory Commission (CSRC) “summoned major companies in iron ore, steel, copper, aluminium sectors, urging them to safeguard price stability in the commodities market”.

    This caused China’s most-traded iron ore futures contracts in the Dalian Commodity Exchange to slump by more than 9% on the day to hit 1,016 yuan (A$203) per tonne. Iron by-products such as steel rebar and hot-rolled coil futures also slid by more than 6.5%.

    Fortescue share price snapshot

    Fortescue shares are not having the best time of it on the ASX in 2021 and are currently down by more than 9% year to date. Over the past year, however, the company’s shares have surged by almost 54%.

    Based on the current Fortescue share price, the company has a market capitalisation of around $67 billion.

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  • Why did ASX tech shares like Afterpay (ASX:APT) have such a good day?

    rising asx share price represented by investor listening excitedly into smart phone

    ASX tech shares had a very solid day today. The S&P/ASX All Technology Index (ASX: XTX) ended up rising 1.26% to 2,668.1 points. That looks pretty decent against the broader S&P/ASX 200 Index (ASX: XJO), which actually fell 0.32% to 7,092.5 points.

    But some ASX tech shares were more equal than others.

    WiseTech Global Ltd (ASX: WTC) managed a healthy 3.06% bump to $27.94 per share. Afterpay Ltd (ASX: APT) put on a solid 0.87% to $93.54, leaving the $84.50 level it hit a fortnight ago in the dust. Some of the top performers were NextDC Ltd (ASX: NXT), which managed a 5.17% rise to $11.18, and Domain Holdings Australia Ltd (ASX: DHG), which put on a 5.26% increase to $4.80 per share.

    So why were ASX tech shares feeling the love today? Well, as has been the norm over recent months, there might be a couple of factors at play. The first is US tech shares. ASX tech investors seem to be taking their cues more and more from the US markets these days.

    We can see this at play with the dance that Afterpay and its US-listed buy now, pay later (BNPL) counterpart Affirm Holdings Inc (NASDAQ: AFRM) have been dancing for the past few months. If Affirm falls hard on any given day, you can probably bet that the Afterpay share price will be following close behind when our market opens. 

    ASX tech shares on the rise

    Arguably, this situation can be extended somewhat for most ASX tech shares. In that vein, it’s interesting to note that US tech shares have had a pretty decent week so far. The tech-heavy NASDAQ-100 (NASDAQ: NDX) was up 0.12% last night and has risen more than 5% in the past week. This could be supporting the ASX tech sector as a whole. 

    The other factor that could be at play is interest rates on government bonds. Now, this doesn’t seem like an obvious connection. But the kinds of shares that dominate the tech sector – namely high-growth companies that don’t yet make solid profits – are extremely sensitive to interest rates. That’s because the market assumes these businesses will be in the most trouble if borrowing costs were to rise. But the opposite is also true.

    According to CNBC, the running yield on 10-year US Government bonds was at roughly 1.7% back on 12 May. Today, it is sitting at just 1.57%. That could be giving at least some investors out there more incentive to look in the tech sector for their next buy. 

    Since there is no real news out of most of the top-performing ASX tech shares named above, it could well be a combination of these factors that is leading to the outperformance we see today. 

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  • Why the Immutep (ASX:IMM) share price rocketed 14% today

    medical asx share price increase represented by three excited doctors with hands in the air

    The Immutep Ltd (ASX: IMM) share price finished strongly today. This came after the company announced it has been granted a new Chinese patent.

    At close of trading today, the biotechnology company’s shares were trading at 67 cents, up 13.56%.

    Progress with Chinese plans

    Investors pushed Immutep shares higher today after digesting the company’s positive update.

    According to its announcement, Immutep has been granted another patent to add to its portfolio. Approved by the Chinese Patent Office, the latest addition will seek to further protect Immutep’s intellectual property.

    The new patent is titled ‘Combined Preparations for the Treatment of Cancer’ (patent number ZL201480073584.3).

    Immutep said the patent follows its previous securing of corresponding European, Australian, Japanese and United States patents.

    The patent relates to the company’s lead immunotherapy candidate, eftilagimod alpha (efti or IMP321), which is a LAG-3 fusion protein with a chemotherapy agent.

    LAG-3 is an inhibitory co-receptor that plays a vital role in the treatment of cancer and autoimmune diseases. The antigen-presenting cell activator works by controlling signalling pathways and activating T cell function. In layman’s terms, it removes the brakes to allow the immune system to kill cancer cells.

    The new patent is solely owned by Immutep and is exclusively licenced to Chinese biopharmaceutical company EOC Pharma. The patent is set to expire on 19 December 2034. Based in Shanghai, EOC Pharma is focused on manufacturing and commercialising oncology products in China.

    Judging by the performance of the Immutep share price, investors seem pretty excited by today’s developments.

    Immutep chief scientific and chief medical officer Dr Frederic Triebel commented on the new patent, saying:

    …this new patent provides protection in the important Chinese territory for a range of novel and highly relevant chemo-immunotherapies featuring efti that could be developed in the future by our partner, EOC Pharma.

    EOC Pharma CEO Xiaoming Zou added:

    We are very pleased that our partner, Immutep, continues to make important progress in building a robust patent estate around efti. This underpins our continued investment in this unique and promising candidate, and provides a range of future development options for our business.

    About the Immutep share price

    Over the past 12 months, the Immutep share price has gained almost 319%, with year-to-date performance delivering gains of around 61%.

    Based on today’s price, Immutep has a market capitalisation of roughly $466 million, with approximately 696 million shares outstanding.

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  • ASX miners on edge as investors ask how low can the iron ore price go?

    ASX shares iron ore, iron ore australia, iron ore price, commodity price,

    The major ASX mining shares are on edge as investors fret over how much lower the iron ore price could sink.

    The price of the steel making commodity continues to slump from its record high of over US$230 a tonne to around US$190 a tonne.

    Some experts believe the iron ore price won’t be trading over US$200 again – not in this cycle, reported the Australian Financial Review.

    ASX mining shares underperform again

    This explains why the big ASX mining shares have lagged yet again. The BHP Group Ltd (ASX: BHP) share price tumbled 2.4% to $46.35 and Rio Tinto Limited (ASX: RIO) share price lost 2.2% to $118.74.

    The Fortescue Metals Group Limited (ASX: FMG) share price fell by a similar magnitude to $21.22 too.

    In contrast, the S&P/ASX 200 Index (Index:^AXJO) shed a more modest 0.3% at the close of trade today.

    Why iron ore prices have fallen from record high

    The iron-fisted clampdown by Chinese authorities on commodity speculators and hoarders is driving the downtrend.

    The AFR reported that the National Development and Reform Commission said China would show no tolerance for monopoly behaviour.

    And we all know China follows through on its threat. Just ask Ant Group Co.’s Jack Ma whose IPO dream was shattered earlier this year.

    Iron ore price set to weaken further

    It isn’t only China’s crackdown that’s weighing. There is also speculation that steel prices have shot up too high and will correct. The high steel price is dragging the iron ore price higher as the latter is needed for steel.

    The question for ASX investors now is where will the iron-ore sell-off end? Credit Suisse doesn’t think we have seen the worst of the falls, although investors shouldn’t be alarmed. I’ll explain why later.

    The broker warned that the iron ore price will continue to soften into the second half of this calendar year.

    Softening prices still signal a profit upgrade

    “Construction accounts for about 60% of China steel use and potentially over 80% if machinery is added,” said Credit Suisse.

    “Our iron ore price forecasts of Jan, were based on a premise of firm demand for property and infrastructure in 1H-21, potentially fading into 2H.

    “But we missed the strength of manufacturing FAI [First Article Inspection] (factories), recovering from the Trump trade war.”

    So, while the broker believes the iron ore price has further to fall this year, it reckons it will still hold around US$160 a tonne on average.

    Why this isn’t bad news for ASX mining shares

    That’s around US$20 to US$30 above its previous forecast and an upgrade is in order for the sector.

    The same would be true for most other brokers as their price forecasts are closer to US$100 a tonne than US$200 a tonne.

    The iron ore price may be well off its record high and may not be revisiting its peak anytime soon. But ASX miners will still be making a lot of profit.

    Remember that Credit Suisse’s price estimate is close to iron ore’s previous peak of circa US$180 a tonne back in the 2011 supercycle.

    Now isn’t the time to turn bearish on ASX iron ore shares.

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  • Why the Antisense (ASX:ANP) share price finished 5% higher today

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    The Antisense Therapeutics Limited (ASX: ANP) share price finished the day higher today following a progress update.

    At market close, shares in the biotechnology company ended the day at 21 cents, up 5%.

    What did Antisense announce?

    In its announcement, Antisense advised that the manufacture of its ATL1102 active pharmaceutical ingredient (API) was undertaken by oligonucleotide therapeutic manufacturing company, Nitto Denko Avecia.

    This completes the batch for its planned Phase 2b clinical trial of ATL1102 in non-ambulant Duchenne Muscular Dystrophy (DMD) patients.

    Antisense stated that Nitto Denko Avecia fulfilled the batch last month, and shipped the material to Pyramid Laboratories in Southern California. The latter specialises in injectable drug product manufacturing. Since then, Pyramid Laboratories has formulated the ATL1102 API into an injectable product for use in the Phase 2b trial.

    The finished product is undergoing product release testing for clinical use, and is expected to release the results next month.

    Antisense CEO, Mark Diamond commented:

    We are very pleased with how the manufacture of clinical supplies for our planned Phase IIb trial of ATL1102 has proceeded particularly given the challenges that have presented to all CMO’s during the global covid pandemic.

    We are indeed fortunate to be partnered with such high quality CMOs that have a deep experience with antisense drugs and both of which we have been working with for over 15 years and that can support manufacture all the way through to commercial sale of product.

    About the Antisense share price

    Founded in 2000, Antisense is focused on developing and commercialising antisense pharmaceuticals for patients suffering from rare diseases.

    The Company is developing ATL1102, an antisense inhibitor of the CD49d receptor, for DMD patients. Recently Antisense reported promising phase II trial results, indicating a significantly reduced number of brain lesions in patients with relapsing-remitting multiple sclerosis.

    Over the past 12 months, the Antisense shares have jumped more than 170%, with 55% gains on year-to-date performance.

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