Market close: F&P Healthcare drives sharemarket down after hammering

Despite delivering a record profit, Fisher and Paykel Healthcare shares took a hammering. Photo / Supplied

Fisher and Paykel Healthcare, always conservative in its financial forecasts, was hammered on the New Zealand sharemarket for its non-commitment on the future, despite delivering a record profit.

The S&P/NZX 50 Index fell 104.10 points or 0.84 per cent to 12,243.34 – back to the level of early March – after reaching an intraday low of 12,134.55. But the market was clouded by the half-year review for the MSCI equity indices, with Napier Port (up 2c to $3.21) falling out of the small cap index and the seven large cap New Zealand stocks being reweighted.

The "adjust" trading session at the end of the day was extended from half an hour to 45 minutes, and an impressive 102.55 million shares worth $588.82 million finally changed hands. There were 61 gainers and 76 decliners over the whole market.

Heavyweight Fisher and Paykel Healthcare drove the market down by slumping $1.68 or 5.35 per cent to $29.70 on trade worth $164m, after reaching $27.81 earlier in the day and having hit $36.46 on April 29.

All this after Fisher and Paykel recorded an 82 per cent rise in net profit to $524.2m on revenue of $1.97 billion, up 56 per cent, for the year ending March and is paying a final dividend of 22c a share, an increase of 42 per cent, on July 7.

Matt Goodson, managing director of Salt Funds Management, said the result was a little below expectation and people are concerned about the next year or two ahead. "There may be a lull in earnings before growth resumes, and a lot more information needs to become apparent. It was probably wise of Fisher and Paykel not to make a forecast."

The medical devices company told the market it is not providing guidance for the 2022 financial year because of the ongoing uncertainties with vaccinations, lockdowns, Covid-19 variants, localised waves and return to stable hospitalisation rates around the world.

Fisher and Paykel sells in more than 120 countries, and revenue from the hospital product group rose 87 per cent to $15b, making up 76 per cent of the company's total sales.

Interestingly, two of the country's best companies, Fisher and Paykel and Ryman Healthcare have been lately struck down by the market. Ryman, the biggest retirement village operator, shed another 67c or 4.97 per cent to $12.82, falling from $15.70 on April 7. Rival Summerset Group Holdings was down 28c or 2.26 per cent to $12.11.

The Commerce Commission has provided an annual revenue range of $689m-$786m for Chorus in the regulatory 2022-24 period for fibre, and Chorus' share price fell 18c or 2.78 per cent to $6.29.

Mercury Energy was again strong, climbing 24c or 3.58 per cent to $6.94; consistent performer Mainfreight surged $2.96 or 4.04 per cent to $76.22; Freightways rose 15c to $11.99; Serko gained 15c or 2.24 per cent to $6.85; and Sanford increased 7c to $4.63

The milk operators had strong days – a2 Milk was up 10c to $5.70; Synlait gained 10c or 3.37 per cent to $3.07, and Fonterra Shareholders' Fund rose 13c or 3.42 per cent to $3.93.

Auckland International Airport decreased 12c to $7.01 on trade worth $50.15m; Ebos Group fell 40c to $32.40; Restaurant Brands declined 60c or 4.32 per cent to $13.30; and Harmoney was down another 4c or 2.52 per cent to $1.55.

Air New Zealand declined 2.5c to $1.665 after being given another five months of cargo flights under the Government's maintaining international air connectivity scheme. The airline will operate 30 flights a week to 13 destinations through to the end of October, with Government contributing $120m-$145m.

Rakon, a world leader in making advanced frequency control and timing products, fell 5c or 5.38 per cent to 88c, after increasing revenue 8 per cent to $128.26m and net profit 142 per cent to $9.63m for the year ending March. Rakon told the market it had gained market opportunities in telecommunications, data centres and space ventures, as well as supplying a global chip shortage.

Stride Property Group, unchanged at $2.35, reported a big turnaround from a loss of $66,000 to a net profit of $131.87m on revenue of $74.92m for the year ending March. Stride's portfolio is worth $1.1 billion and it is buying the AA Insurance Centre in Auckland for $152m.

AMP is facing a civil proceeding brought by the Australian Securities and Investments Commission in the Australian Federal Court for breaches concerning the deduction of life insurance premium and advice service fees from superannuation accounts of deceased customers. AMP has fixed its processes and remediated A$5.3m ($5.6m) involving 10,155 customer accounts. AMP's share price rose 7c or 6.19 per cent to $1.20.

Utilities software company Gentrack climbed 16c or 93 per cent to $1.88 after showing signs of a turnaround. Its revenue increased 0.7 per cent to $50.95m and its loss narrowed to $1.11m from $12.8m for the six months ending March, and Gentrack said revenue for the full-year was slightly ahead at $100.5m.