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CSL (ASX:CSL) - Behring continues to do the heavy lifting
CSL Ltd. FY24 results were broadly in line, with double-digit underlying top and bottom line growth and strong OCF. Strong plasma collections drove Behring sales (+15%), while Seqirus was soft (+4%) on reduced immunisation rates, albeit above market, and Vifor grew modestly given follow-on products in some EU markets.
We retain our Add rating.
James Hardie (ASX:JHX) - 2QFY25 softness as the market awaits rate cuts
JHX has reiterated its FY25 guidance, while forecasting ‘particularly challenging’ conditions for 2QFY25, resulting in 2Q guidance falling c.13%short of consensus (and our) adjusted net income expectations. This weak 2Qinvariably places additional weight on 2H25, which includes a seasonally weaker December period. With management reiterating FY25 adjusted net income guidance of U$630-700m, we set our forecast at the lower end of the range, acknowledging that lower interest rates will be a positive, when they occur.
We retain our Add rating.
HealthCo REIT(ASX:HCW) - Asset sales, capital management remain on agenda
The FY24 result saw portfolio metrics remain stable (cash collection 100%; occupancy 99%; and WALE +12 years). NTA $1.64. Asset recycling has been a focus during FY24 and management has flagged it will continue to look at asset sales in FY25, although no further detail around the quantum of divestments at this stage.
We retain our Add rating.
Challenger (ASX:CGF) - Continuing to see good earnings momentum
CGF’s FY24 normalised NPAT (A$417m) was in-line with consensus and +14% on the pcp. Overall, we saw this as a positive FY24 result highlighted by a strong improvement in Life business margins/returns, good group cost control and an upward step change in CGF’s capital position.
We retain our Add rating.
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