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Live ASX Coverage Summary – Tuesday, 27 May
Welcome to the latest updates from the Australian Securities Exchange (ASX). Refresh the page for real-time insights.
ALS Reports FY25 Performance
Time: 9:00 am
ALS has released its Fiscal Year 2025 results, revealing a strong alignment with expectations. The company has initiated a capital raise of $350 million to support internal investments within its laboratory network. Key figures include:
- Revenue: Up 16% to $2.99 billion, aligning with market forecasts.
- Underlying Net Profit After Tax (NPAT): Down 1.4% to $312 million, consistent with guidance and market consensus.
- Dividend: Declined by 1.5% to 38.6 cents per share, meeting expectations.
- Net Debt: Increased by 21.2% to $1.42 billion.
- Leverage Ratio: Rose from 2.0x to 2.3x, aligning with the targeted range of 1.7-2.3x.
ALS is implementing a fully-underwritten institutional placement at $16.70 per share, reflecting a 5.3% discount from its last closing price of $17.64 on May 26. The company predicts:
- Revenue growth of 5-7% for FY26 with anticipated margin improvements.
- Continued upward trends in sample volumes within the Commodities division.
- An emphasis on enhancing margins in the Life Sciences division.
- No significant impact on input costs due to US tariffs.
- Adherence to FY27 targets, including $3.3 billion in revenue and an underlying EBIT of $600 million.
(Source: ASX Announcement | ALS [ALQ])
Amplitude Energy’s Promising Long-Term Projections
Time: 8:50 am
Amplitude Energy has shared an optimistic long-term outlook for its East Coast Supply Project (ECSP). By 2028, the project aims to:
- Boost production beyond 100 terajoules (TJ) per day (FY25 forecast: 69-73 TJ/day).
- Double group revenue from FY24 levels and more than triple earnings.
- Augment reserves and resources by over 60%.
- Extend the operational life of the Athena Gas Plant by more than a decade.
- Enhance margins and overall value of the company’s assets.
(Source: ASX Announcement | Amplitude Energy [AEL])
Highlights from Livewire
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The ASX’s Tesla? Insights on Commonwealth Bank (CBA)
Brambles is noted as the leading ASX stock among global funds, while CBA, despite its popularity, lacks a place in the top rankings. Valuation concerns exist, as CBA trades at a premium compared to global counterparts like JPMorgan and Google, prompting sell ratings from UBS and Morgan Stanley. -
Seeking Top Global Growth Small and Mid-Cap Stocks
Munro Partners employs a stringent selection process focused on growth opportunities in sectors like AI and infrastructure. Their Global Growth Small & Mid Cap Fund achieved a 55% return in 2024, featuring robust holdings and active risk management strategies. - Anticipations of a Deeper Easing Cycle
The Reserve Bank of Australia (RBA) has shifted its stance towards a lower neutral interest rate, predicting that underlying inflation will stabilise by mid-2025. Expected steady rate cuts starting July 2025, with a forecasted cash rate lowering to 2.6% by 2026, indicate a more dovish approach amid economic uncertainties.
Market Drivers and Outlook
Time: 8:40 am
European equities rallied following President Trump’s decision to delay 50% tariffs on the EU until 9 June, with optimistic signals from the EU to advance discussions. The pan-European Stoxx 600 rose by 1.0%, with notable gains in various sectors.
In Australia, S&P/ASX 200 futures have increased by 20 points (+0.23%), reflecting strong performance in European markets while US equities remained dormant due to the Memorial Day holiday.
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