Market close: Fisher and Paykel Healthcare surges ahead after beating guidance

Medical devices manufacturer Fisher and Paykel rose $2.10 or 10.14 per cent to $22.81. Photo / Supplied

Fisher and Paykel Healthcare surged back as the New Zealand sharemarket’s biggest company, ahead of Meridian Energy, following its better-than-expected half year financial result.

Medical devices manufacturer Fisher and Paykel rose $2.10 or 10.14 per cent to $22.81 – its highest level for seven months – after beating its August revenue guidance.

The performance pumped the S&P/NZX 50 Index to a gain of 87.04 points or 0.77 per cent, closing at 11,395.35 after reaching an intraday low of 11,301.83.

There were 55 gainers and 74 decliners over the whole market on volume of 81.31 million share transactions worth $176.09 million. Fisher and Paykel dominated the trading, with 2.75 million shares worth $63.19m, changing hands.

If it wasn’t for Fisher and Paykel’s timely rise, the market trading would have been flat. It meant the company’s market capitalisation flew to $13.17 billion, ahead of Meridian – down 1c to $4.74 – with $12.23b.

Fisher and Paykel reported revenue of $690.6m for the six months ending September and though it was down 23 per cent compared with the same period last year, it was ahead of the $670m guidance and the pre-Covid 2020 period of $570.9m.

The hospital product group sales were down 35 per cent to $438.7m and the homecare group (obstructive sleep apnea products) was up 10 per cent to $249.9m.

Fisher and Paykel’s net profit declined 57 per cent to $95.9m and it is paying an increased interim dividend of 17.5c a share on December 21. It is reintroducing its dividend reinvestment plan.

Fisher and Paykel said hospital customers were working through their excess inventory holdings and they were declining, and second half sales are expected to be higher.

Greg Smith, head of retail with Devon Funds Management, said the market’s expectations of Fisher and Paykel were quite low.

“Instead of a downgrade, we have a small upgrade and plenty of positives as we all know hospitalisation rates for Covid peaked last year. Fisher and Paykel is painting a bright outlook for the second half and the market, probably like the company, is still trying to figure out what the future looks beyond Covid,” Smith said.

Mainfreight was up 69c to $71.49; Accordant Group added 4c or 2.34 per cent to $1.75; NZ King Salmon collected 1c or 4.35 per cent to 24c; Eroad gained 3c or 2.46 per cent to $1.25; and Smartpay increased 2.5c or 2.63 per cent to 97.5c

Auckland International Airport was down 13c to $7.82; Restaurant Brands fell 44c or 6.29 per cent to $6.55; Vulcan Steel decreased 18c or 2.03 per cent to $8.68; PGG Wrightson declined 10c or 2.41 per cent to $4.05; Skellerup Holdings gave up 20c or 3.54 per cent to $5.45; and Pacific Edge was down 2.5c or 5.1 per cent to 46.5c.

Precinct Properties, down 2c to $1.21, has extended its partnership with Hong Kong-based investment firm PAG that involves developing the Auckland Wynyard Quarter stage three and buying 40 and 44 Bowen St properties in Wellington for $240m.

Other property companies declined. Stride was down 3c or 1.99 per cent to $1.48, and Investore 4c or 2.6 per cent to $1.50.

Metro Performance Glass, up 0.007c or 3.83 per cent to 19c, is closing its manufacturing plant in Tauranga in favour of Auckland and Christchurch. Metro’s half year net profit increased 51 per cent to $634,000 on revenue of $138.13m, up 18 per cent, spurred by 32 per cent growth in Australia.

It was a busy day for financial results.

Retirement village operator Arvida Group increased 5c or 4.17 per cent to $1.25 after reporting an 18 per cent rise in net profit to $89.19m on revenue of $109.6m, up 16 per cent, for the six months ending September. It is paying an interim dividend of 2.56c a share on December 21.

Arvida’s total sales were $168.2m, up 31 per cent including resales worth 93.5m, up 59 per cent, and 51 new units were delivered. It has increased total assets to $3.6b and net tangible asset price is $1.93 per share.

Other retirement operators Summerset Group was up 15c to $9.45, and Ryman Healthcare was down 20c or 2.9 per cent to $6.70.

Utilities software firm Gentrack soared 31c or 18.34 per cent to $2 after reporting a 19.5 per cent increase in revenue to $126.3m for the six months ending September and upgrading its guidance. It had a net loss of $3.32m.

Gentrack said it would reach its 2024 full year revenue target of $130m in the present financial year and it has upgraded the following year to $150m.

NZ Automobile Investments, which owns 2 Cheap Cars, gained 1.5c or 6.52 per cent to 24.5c, after increasing half year revenue 29 per cent to $40.16m and net profit was down 57 per cent to $595,000. Vehicle sales climbed 11 per cent to 4281. The Colonial Motor Company increased 20c or 2.08 per cent to $9.80.

Software firm ikeGPS, up 4c or 4.4 per cent to 95c, reported a 170 per cent rise in revenue to $15.4m and net profit from continuing operations was $1.1m, down 6.21 per cent. Recurring subscriptions provided 88 per cent of the revenue.

Cooks Coffee, unchanged at 38c, reported half year revenue of $3.1m, down 15 per cent, and net profit of $86,000, up 47 per cent. Cooks said the Esquires and Triple Two brands – it has 111 franchised stores in UK and Ireland – achieved record daily sales in October.