Business Summary Aurizon Holdings Limited (AZJ) is an Australian rail freight operator company. The company transports more than 250 million tonnes of Australian commodities, connecting miners, primary producers, and industry with international and domestic markets. It provides customers with integrated freight and logistics solutions across a national rail and road network, traversing Australia. AZJs operations include Network, Coal and Bulk. Network: This business operates and provides access to the Central Queensland Coal Network (CQCN). It provides maintenance and renewal of Network assets. The division provides design, construction, overhaul, maintenance and management services to the Group, as well as external customers. Coal: This business provides a critical link in Australias major coal chain systems for the majority of Australias coal producers. The coal transport operation links mines in the Newlands, Goonyella, Blackwater, Moura and West Moreton systems in Queensland and the Hunter Valley, including Ulan and Gunnedah coal systems, in New South Wales to domestic customers and coal export terminals. Bulk: This business involves transport of bulk mineral commodities including iron ore, agricultural products, mining and industrial inputs, and general freight throughout Queensland and Western Australia. Latest Research 1H21 Result – Downgrade to Neutral Commencement of WIRP fees drives upgraded guidance – The mid-point of full year underlying profit guidance was increased $35 million. However, this was effectively driven entirely by $40 million of retrospective EBIT recognised in relation to the Wiggins Island Rail Project. For more information see full research report 17 Feb 2021. GICS - Transportation Aurizon Holdings Limited ASX Code: AZJ Price: $3.83 12 Mth Target Price: $4.28 Rating: Neutral 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. This is general investment advice only and does not constitute advice to any person. Disclosure of Interest: Bell Potter Securities Limited receives commission from dealing in securities and its authorised representatives, or introducers of business, may directly share in this commission. Bell Potter Securities and its associates may hold shares in the companies recommended. Snapshot Date Market Cap. Shares on issue 12 Month High 12 Month Low 27 April 2021 $7,050m 1,840.7m $5.07 $3.59 Rating Rating 12 Mth Target Price Capital Gain Gross Yield Implied Total Return Neutral $4.28 12.0% 8.0% 20.0% Investment Fundamentals FYE 30 Jun 2020A 2021F 2022F 2023F Profit $m 531.0 519.0 499.0 504.0 Profit (norm)* $m 531.0 519.0 499.0 504.0 EPS* ¢ 27.0 28.0 27.0 28.0 EPS Growth % 12.5 3.7 -3.6 3.7 P/E* x 14.1 13.6 14.1 13.6 P/E Relative % 0.0 0.0 0.0 0.0 DPS ¢ 27.0 28.0 26.0 27.0 Yield % 7.1 7.3 6.8 7.1 Franking % 70.0 70.0 50.0 50.0 * Adjusted for goodwill and unusual items Source: Based on Citi estimates Share Price Chart Total Return on $10,000 Investment
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Aurizon Holdings Limited ASX Code: AZJ Price: $3.84 12 Mth ......Aurizon Holdings Limited (AZJ) is an Australian rail freight operator company. AZJ owns and operates a coal network
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Business SummaryAurizon Holdings Limited (AZJ) is an Australian rail freight operator company.The company transports more than 250 million tonnes of Australiancommodities, connecting miners, primary producers, and industry withinternational and domestic markets. It provides customers with integratedfreight and logistics solutions across a national rail and road network,traversing Australia. AZJs operations include Network, Coal and Bulk.
Network: This business operates and provides access to the CentralQueensland Coal Network (CQCN). It provides maintenance and renewal ofNetwork assets. The division provides design, construction, overhaul,maintenance and management services to the Group, as well as externalcustomers.
Coal: This business provides a critical link in Australias major coal chainsystems for the majority of Australias coal producers. The coal transportoperation links mines in the Newlands, Goonyella, Blackwater, Moura andWest Moreton systems in Queensland and the Hunter Valley, including Ulanand Gunnedah coal systems, in New South Wales to domestic customersand coal export terminals.
Bulk: This business involves transport of bulk mineral commodities includingiron ore, agricultural products, mining and industrial inputs, and generalfreight throughout Queensland and Western Australia.
Latest Research1H21 Result – Downgrade to Neutral
Commencement of WIRP fees drives upgraded guidance – The mid-pointof full year underlying profit guidance was increased $35 million. However,this was effectively driven entirely by $40 million of retrospective EBITrecognised in relation to the Wiggins Island Rail Project.
For more information see full research report 17 Feb 2021.
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 investmentobjectives, 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 withBell 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 PotterSecurities 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. This is generalinvestment advice only and does not constitute advice to any person.Disclosure of Interest: Bell Potter Securities Limited receives commission from dealing in securities and its authorised representatives, or introducers of business, may directly share in thiscommission. Bell Potter Securities and its associates may hold shares in the companies recommended.
Snapshot
DateMarket Cap.Shares on issue12 Month High12 Month Low
27 April 2021$7,050m1,840.7m$5.07$3.59
RatingRating12 Mth Target Price
Capital GainGross Yield
Implied Total Return
Neutral$4.2812.0%8.0%20.0%
Investment FundamentalsFYE 30 Jun 2020A 2021F 2022F 2023F
* Source: Morningstar. This chart shows the spread of recommendations from thosebroker analyst's in Australia with research coverage of this stock.
Principals & DirectorsPrincipals
Company Secretary Mr Dominic D Smith
Directors
Mr Timothy Michael Poole(Non-Executive Director,Non-ExecutiveChairman)Mr Andrew Thomas Harding(Chief Executive Officer,ManagingDirector)Mr Michael Anthony Fraser(Non-Executive Director)Mr Russell Ronald Caplan(Non-Executive Director)Dr Sarah Elizabeth Ryan(Non-Executive Director)Ms Samantha (Sam) Lewis(Non-Executive Director)Mr Marcelo Bastos(Non-Executive Director)Ms Katherine Elizabeth Vidgen(Non-Executive Director)Mr Lyell Strambi(Non-Executive Director)
To access further Research or for information regarding our recommendations and ratings please seewww.bellpotter.com.au