Leading Independent Investment Research, Morningstar, Inc.

Morningstar

Leading Independent Investment Research

Morningstar, Inc.

Morningstar, Inc. is a leading provider of independent investment research in North America, Europe, Australia, and Asia. We offer an extensive line of products and services for individual investors, financial advisors, asset managers, and retirement plan providers and sponsors. 

Morningstar provides data on more than 500,000 investment offerings, including stocks, mutual funds, and similar vehicles, along with real-time global market data on more than 16 million equities, indexes, futures, options, commodities, and precious metals, in addition to foreign exchange and Treasury markets. Morningstar also offers investment management services through its investment advisory subsidiaries, with more than $180 billion in assets under advisement or management as of June 30, 2015. We have operations in 27 countries.

Download the Morningstar Fact Sheet : http://corporate.morningstar.com/US/documents/MarketingFactSheets/AboutMorningstarFactsheet.pdf

Equity Bottom-Up

Goodman Group’s reported fiscal 2016 earnings of AUD 40.1 cents per security, was in line with  our forecast and represented growth of 7.8% on the prior year. This is the sixth year running where Goodman has achieved annual EPS growth of 6% to 8% and management are forecasting this to continue, guiding for fiscal 2017 EPS of AUD 42.5 cents, representing growth of 6.0%. Distributions will rise in step, with the guided distribution of AUD 24.5 cents per security (based on a 60% payout ratio) representing a yield of 3.3% at current levels.The substantial yield premium on high-quality industrial property to bonds is a key factor behind strong institutional demand for Goodman-developed product. With an outlook for interest rates to reach exceptionally low levels, we expect sustained institutional demand for industrial property.Analyst: Tony Sherlock

Goodman Group’s reported fiscal 2016 earnings of AUD 40.1 cents per security, was in line with  our forecast and represented growth of 7.8% on the prior year. This is the sixth year running where Goodman has achieved annual EPS growth of 6% to 8% and management are forecasting this to continue, guiding for fiscal 2017 EPS of AUD 42.5 cents, representing growth of 6.0%. Distributions will rise in step, with the guided distribution of AUD 24.5 cents per security (based on a 60% payout ratio) representing a yield of 3.3% at current levels.The substantial yield premium on high-quality industrial property to bonds is a key factor behind strong institutional demand for Goodman-developed product. With an outlook for interest rates to reach exceptionally low levels, we expect sustained institutional demand for industrial property.Analyst: Tony Sherlock

Growing Institutional Demand for Industrial Assets Underpins Our Outlook for Strong Earnings Growth

<ul><li>The Best Ideas list is a compilation of stock ideas sourced from Morningstar’s global equity research team. </li><li>Recent Asian additions: <a href="https://www.smartkarma.com/entities/177" target="_blank" data-smartkarma-citation="entities:177:1">Woodside Petroleum Ltd (WPL AU)</a>, <a href="https://www.smartkarma.com/entities/10105" target="_blank" data-smartkarma-citation="entities:10105:1">Iluka Resources Ltd (ILU AU)</a>, <a href="https://www.smartkarma.com/entities/2785" target="_blank" data-smartkarma-citation="entities:2785:1">Cognizant Tech Solutions A (CTSH US)</a>, </li><li>Recent Asian deletions: <a href="https://www.smartkarma.com/entities/216" target="_blank" data-smartkarma-citation="entities:216:1">Tata Motors Ltd (TTMT IN)</a>, <a href="https://www.smartkarma.com/entities/959" target="_blank" data-smartkarma-citation="entities:959:1">Goodman Group (GMG AU)</a></li></ul>Analyst: Michael Holt, CFA

The Best Ideas list is a compilation of stock ideas sourced from Morningstar’s global equity research team. Recent Asian additions: Woodside Petroleum Ltd (WPL AU), Iluka Resources Ltd (ILU AU), Cognizant Tech Solutions A (CTSH US), Recent Asian deletions: Tata Motors Ltd (TTMT IN), Goodman Group (GMG AU)Analyst: Michael Holt, CFA

Thematic (Sector/Industry)

As a consequence of increasing global risks, tougher regulatory demands, intensifying pressure on net interest margins, higher bad debts and lower than expected returns on equity we reduce earnings forecasts, fair value estimates and rebase medium- to longer-term dividend payout ratios lower to more sustainable long-term levels for three of the four wide moat-rated Australian banks: Commonwealth Bank of Australia, National Australia Bank and Westpac Banking Corporation. We cut Australia and New Zealand Banking Group's earnings forecasts and fair value estimate in March 2016 and now rebase its longer-term dividend payout ratio lower. Our preferred banks are the big retail-focused, New South Wales-based, banks Westpac and Commonwealth Bank due to their lower risk profiles, higher ROEs, higher NIMs, lower cost/income ratios, consistently lower-loan-loss rates, less volatility in earnings, and larger exposures to the strongly performing New South Wales economy.Analyst: David Ellis

As a consequence of increasing global risks, tougher regulatory demands, intensifying pressure on net interest margins, higher bad debts and lower than expected returns on equity we reduce earnings forecasts, fair value estimates and rebase medium- to longer-term dividend payout ratios lower to more sustainable long-term levels for three of the four wide moat-rated Australian banks: Commonwealth Bank of Australia, National Australia Bank and Westpac Banking Corporation. We cut Australia and New Zealand Banking Group's earnings forecasts and fair value estimate in March 2016 and now rebase its longer-term dividend payout ratio lower. Our preferred banks are the big retail-focused, New South Wales-based, banks Westpac and Commonwealth Bank due to their lower risk profiles, higher ROEs, higher NIMs, lower cost/income ratios, consistently lower-loan-loss rates, less volatility in earnings, and larger exposures to the strongly performing New South Wales economy.Analyst: David Ellis

Challenges Mount for the Wide Moat-Rated Australian Banks

Founder and CEO, Europacifica Consulting

Naomi Fink

Founder and CEO

Europacifica Consulting

Macroeconomics

<figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/009/868/original/Chart2.Australia.Risk_.Pref_.png?1467594254" class="editor-image img-responsive" data-smartkarma-image-id="9868"><figcaption class="figcaption">Australians risk-averse? Not today, mate (Source: Europacifica)</figcaption></figure> Speculation that Australia will lose its <a href="http://www.afr.com/news/politics/election/election-2016-the-trafficjam-political-culture-threatening-aaa-credit-rating-20160703-gpxil9" target="_blank">AAA rating</a> due to political deadlock at the polls has probably been enhanced by <a href="http://www.telegraph.co.uk/business/2016/06/27/george-osborne-to-speak-in-attempt-to-calm-markets-following-bre/" target="_blank">the final downgrade</a> to the UK's own rating, motivated by the recent EU referendum.  Medium-term, the "lucky country" might very well escape the fate of capital flight, given there are many more controversial events (such as US elections) that affect Australia little. Whenever appetite for risk revives…

Australians risk-averse? Not today, mate (Source: Europacifica) Speculation that Australia will lose its AAA rating due to political deadlock at the polls has probably been enhanced by the final downgrade to the UK's own rating, motivated by the recent EU referendum.  Medium-term, the "lucky country" might very well escape the fate of capital flight, given there are many more controversial events (such as US elections) that affect Australia little. Whenever appetite for risk revives…

Asian Equities Analyst, Logistics & Transport, Tracking Traffic

Daniel Hellberg

Asian Equities Analyst, Logistics & Transport

Equity Capital Markets

Global Logistic Properties / Equity Capital Markets

As China Logistics Property Holdings (CLPH)  prepares for a Hong Kong IPO, we compare it to <a href="https://www.smartkarma.com/entities/2894" target="_blank" data-smartkarma-citation="entities:2894:1">Global Logistic Properties Ltd</a> (GLP), by far the largest player in China's modern industrial property sector. This short note is meant to lay out the differences and similarities between the two companies' China portfolios, and hopefully it can also generate some questions for CLPH management to answer for investors in the coming days. Although GLP is not a 'pure play' on Chinese demand for modern…

As China Logistics Property Holdings (CLPH)  prepares for a Hong Kong IPO, we compare it to Global Logistic Properties Ltd (GLP), by far the largest player in China's modern industrial property sector. This short note is meant to lay out the differences and similarities between the two companies' China portfolios, and hopefully it can also generate some questions for CLPH management to answer for investors in the coming days. Although GLP is not a 'pure play' on Chinese demand for modern…

First Cut: Global Logistic Properties Vs. China Logistics Property Holdings

Australia

Goodman Group is an integrated industrial property group. The Group has operations in Australia, New Zealand, UK, Asia and Europe. Goodman's activities include property investment, funds management, property development and property services. The Group's property portfolio includes business parks, industrial estates, office parks and warehouse/distribution centers.

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

Goodman Group (GMG AU)

Growing Institutional Demand for Industrial Assets Underpins Our Outlook for Strong Earnings Growth

Goodman Group’s reported fiscal 2016 earnings of AUD 40.1 cents per security, was in line with our forecast and represented growth of 7.8% on the...

Morningstar, Inc.

Equity Best Ideas for August 2016

The Best Ideas list is a compilation of stock ideas sourced from Morningstar’s global equity research team. Recent Asian additions: Woodside...

Morningstar, Inc.

Challenges Mount for the Wide Moat-Rated Australian Banks

As a consequence of increasing global risks, tougher regulatory demands, intensifying pressure on net interest margins, higher bad debts and lower...

Morningstar, Inc.

Australia a Risk Haven? Not Today, Mate

Speculation that Australia will lose its AAA rating due to political deadlock at the polls has probably been enhanced by the final downgrade to...

Naomi Fink

First Cut: Global Logistic Properties Vs. China Logistics Property Holdings

As China Logistics Property Holdings (CLPH) prepares for a Hong Kong IPO, we compare it to Global Logistic Properties Ltd (GLP), by far the...

Daniel Hellberg

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)