Post on 30-Jun-2020
Equity Research Coverage | March 2015
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Focus on company attractiveness as investment Investors benefit from our focus on developing differentiated and deep opinions about a company’s valuations, growth prospects, and competitive forces. We determine our coverage of 230 Australian and New Zealand companies on the basis of our assessment of a company’s attractiveness as an investment, and its ability to generate sustainable excess returns on capital – whether or not it has an economic moat.
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We use the following guidelines to determine our Australian equity coverage:33 All companies in the S&P/ASX 100 Index.33 Companies in the S&P/ASX 200 Index which
have an economic moat and/or have cash flow which is at least mildly predictable (not those with 'extreme' uncertainty under our framework). As a rough guide, Morningstar will cover at least 80% of S&P/ASX 200 companies (which typically equates to more than 95% of S&P/ASX 200 by market capitalisation). Companies we choose not to cover in this index are usually unattractive for most portfolios, in our opinion.33 About 50 ex-S&P/ASX 200 stocks are selected
on Morningstar’s judgement of each security's investment merit − which includes a very strong lean towards high-quality companies with sustainable competitive advantages, or economic moats.
New Zealand coverage guidelines:33 The majority of the NZX15 Index.33 10–15 ex-NZX15 Index stocks selected on
our judgement of each security's investment merit.
Morningstar’s other analyst teams also provide in-depth, actionable research and recommendations on 4,500 managed funds, 34 ASX-listed exchange-traded funds, 13 listed investment companies, and 48 income securities. All this and more is available on Morningstar.com.au. K
Joel BloomerHead of Asia-Pacific Equity & Credit Research
Research Coverage of Total ASX (Market Cap)
Morningstar All Ordinaries
Research Coverage of ASX 200 (Market Cap)
Morningstar ASX 200
Research Coverage of Total NZX (Market Cap)
Morningstar Total NZX
95% 99% 79%
Peter WarnesHead of Equities Research
David Ellis, CFA
Sector Head: Financials, Infrastructure, Insurance, Property
Mathew HodgeSector Head: Basic Materials, Energy
Ross MacMillan, CA
Sector Head: Industrials
Daniel Mueller, CA, CFA Sector Head: Consumer
Morningstar Equities Research | March 2015
Contact DetailsTel: 1800 03 44 55Email: help.au@morningstar.comAddress: Lvl 36, 264 George St Sydney NSW 2000www.morningstar.com.au
2 Equity Research Coverage Morningstar Equities Research | March 2015 3
Morningstar Sector ASX Code Company ameS&P/ASX
100S&P/ASX
200S&P/ASX
Small OrdsMarket Cap (A$m)
11 Mar 2015 Morningstar Analyst
Consumer Discretionary AGI Ainsworth Game Technology Limited G G 873.2 Brian Han
ARP ARB Corporation Limited G G 953.8 Farina Parsons
AAD Ardent Leisure Group G G 1,087.8 Brian Han
ALL Aristocrat Leisure Limited G G 4,614.2 Brian Han
AHE Automotive Holdings Group Limited G G 1,287.0 Farina Parsons
BRG Breville Group Limited G G 986.1 Farina Parsons
CWN Crown Resorts Limited G G 11,224.6 Brian Han
DMP Domino's Pizza Enterprises Limited G G 3,081.6 Farina Parsons
EGP Echo Entertainment Group Limited G G 3,624.7 Brian Han
FXJ Fairfax Media Limited G G 2,287.3 Brian Han
FLT Flight Centre Travel Group Limited G G 4,315.0 Farina Parsons
GEM G8 Education Limited G G 1,411.5 Farina Parsons
GUD GUD Holdings Limited G G 567.5 Daniel Mueller
HVN Harvey Norman Holdings Ltd G G 5,031.0 Farina Parsons
IVC InvoCare Limited G G 1,512.9 Chris Kallos
JBH JB Hi-Fi Limited G G 1,743.1 Farina Parsons
KMD Kathmandu Holdings Limited G G 294.2 Farina Parsons
MYR Myer Holdings Limited G G 995.7 Farina Parsons
NVT Navitas Limited G G 1,778.7 Farina Parsons
NWS News Corporation G G 884.8 Brian Han
NEC Nine Entertainment Co. Holdings Limited G G 1,955.8 Brian Han
PBG Pacific Brands Limited G G 408.2 Farina Parsons
PMV Premier Investments Limited G G 1,849.0 Farina Parsons
REA REA Group Ltd G G 6,247.2 Gareth James
SWM Seven West Media Limited G G 1,568.7 Brian Han
SKT Sky Network Television Limited G G 2,124.7 Nachiket Moghe, CFA
SKC SkyCity Entertainment Group Limited G G 2,332.3 Brian Han
SGH Slater & Gordon Limited G G 1,525.6 Farina Parsons
SXL Southern Cross Media Group Limited G G 794.6 Brian Han
SGN STW Communications Group Limited G G 278.6 Brian Han
SUL Super Retail Group Limited G G 1,858.0 Farina Parsons
TAH Tabcorp Holdings Limited G G 3,537.3 Brian Han
TTS Tatts Group Limited G G 5,768.6 Brian Han
TEN Ten Network Holdings Limited G G 631.4 Brian Han
VRL Village Roadshow Limited G G 863.0 Brian Han
Consumer Staples AHY Asaleo Care Limited G G 1,050.0 Farina Parsons
CCL Coca-Cola Amatil Limited G G 8,048.2 Farina Parsons
GNC Graincorp Limited G G 2,229.1 Gareth James
MTS Metcash Limited G G 1,369.3 Gareth James
TWE Treasury Wine Estates Limited G G 3,445.2 Farina Parsons
WES Wesfarmers Limited G G 49,366.4 Gareth James
WOW Woolworths Limited G G 37,983.1 Gareth James
Current Coverage – S&P/ASX 200
2 Equity Research Coverage Morningstar Equities Research | March 2015 3
Morningstar Sector ASX Code Company ameS&P/ASX
100S&P/ASX
200S&P/ASX
Small OrdsMarket Cap (A$m)
11 Mar 2015 Morningstar Analyst
Energy AWE AWE Limited G G 641.6 Mark Taylor
BPT Beach Energy Limited G G 1,329.9 Mark Taylor
CTX Caltex Australia Limited G G 10,114.2 Mark Taylor
OSH Oil Search Limited G G 11,937.9 Mark Taylor
ORG Origin Energy Limited G G 13,530.2 Gareth James
STO Santos Limited G G 7,702.1 Mark Taylor
WHC Whitehaven Coal Limited G G 1,677.6 Mathew Hodge
WPL Woodside Petroleum Limited G G 28,968.7 Mark Taylor
WOR WorleyParsons Limited G G 2,480.5 Ross MacMillan
Financials ABP Abacus Property Group G G 1,591.4 Tony Sherlock
AMP AMP Limited G G 19,343.6 David Ellis
ASX ASX Limited G G 8,198.8 Nathan Zaia
ANZ Australia & New Zealand Banking Group Ltd G G 97,888.0 David Ellis
AOG Aveo Group G G 1,303.7 Tony Sherlock
BOQ Bank of Queensland Limited G G 5,108.4 Nathan Zaia
BEN Bendigo and Adelaide Bank Limited G G 5,709.1 Nathan Zaia
BWP BWP Trust G G 1,946.4 Adrian Atkins
CGF Challenger Limited G G 3,982.4 Nathan Zaia
CHC Charter Hall Group G G 1,796.7 Tony Sherlock
CQR Charter Hall Retail REIT G G 1,697.5 Tony Sherlock
CBA Commonwealth Bank of Australia G G 147,686.0 David Ellis
CMW Cromwell Property Group G G 2,007.1 Adrian Atkins
DXS Dexus Property Group G G 7,244.3 Adrian Atkins
FDC Federation Centres G G 4,311.5 Tony Sherlock
FXL FlexiGroup Limited G G 1,128.2 Nathan Zaia
GMA Genworth Mortgage Insurance Aust Limited G G 2,145.0 Nathan Zaia
GMG Goodman Group G G 11,237.0 Tony Sherlock
GPT GPT Group G G 8,469.4 Tony Sherlock
HGG Henderson Group PLC G G 3,842.1 Sebastien Pigeon
IAG Insurance Australia Group Limited G G 14,026.3 David Ellis
IOF Investa Office Fund G G 2,517.6 Adrian Atkins
IFL IOOF Holdings Limited G G 3,181.4 Nathan Zaia
LLC Lend Lease Group G G 9,882.1 Tony Sherlock
MQG Macquarie Group Limited G G 24,445.7 David Ellis
MFG Magellan Financial Group Limited G G 3,084.5 David Ellis
MPL Medibank Private Limited G 6,829.9 David Ellis
MGR Mirvac Group G G 7,653.2 Tony Sherlock
NAB National Australia Bank Limited G G 91,929.1 David Ellis
NVN Novion Property Group G G 7,939.2 Adrian Atkins
OFX OzForex Group Limited G G 592.8 Nathan Zaia
PPT Perpetual Limited G G 2,494.1 Nathan Zaia
PTM Platinum Asset Management Limited G G 4,721.7 Nathan Zaia
Current Coverage – S&P/ASX 200
4 Equity Research Coverage Morningstar Equities Research | March 2015 5
Morningstar Sector ASX Code Company ameS&P/ASX
100S&P/ASX
200S&P/ASX
Small OrdsMarket Cap (A$m)
11 Mar 2015 Morningstar Analyst
QBE QBE Insurance Group Limited G G 18,331.2 David Ellis
SCG Scentre Group G G 20,924.5 Tony Sherlock
SCP Shopping Centres Australasia Property Group G G 1,298.4 Tony Sherlock
SGP Stockland G G 11,123.7 Tony Sherlock
SUN Suncorp Group Limited G G 17,433.4 David Ellis
WFD Westfield Corporation G G 20,448.4 Tony Sherlock
WBC Westpac Banking Corporation G G 117,568.3 David Ellis
Health Care ANN Ansell Limited G G 3,972.4 Chris Kallos
COH Cochlear Limited G G 5,081.4 Chris Kallos
CSL CSL Limited G G 44,332.9 Chris Kallos
GXL Greencross Limited G G 981.9 Farina Parsons
HSO Healthscope Limited G G 5,265.6 Chris Kallos
MSB Mesoblast Limited G G 1,228.7 Chris Kallos
PRY Primary Health Care Limited G G 2,550.4 Chris Kallos
RHC Ramsay Health Care Limited G G 13,838.5 Chris Kallos
RMD ResMed Inc. G G 12,087.0 Chris Kallos
SIP Sigma Pharmaceuticals Limited G G 1,027.8 Chris Kallos
SRX Sirtex Medical Limited G G 2,023.2 Chris Kallos
SHL Sonic Healthcare Limited G G 7,927.7 Chris Kallos
VRT Virtus Health Limited G G 604.3 Chris Kallos
Industrials ALQ ALS Limited G G 2,349.8 Ross MacMillan
AIO Asciano Limited G G 6,164.4 Ross MacMillan
AZJ Aurizon Holdings Limited G G 10,216.1 Ross MacMillan
BKN Bradken Limited G G 378.0 Ross MacMillan
BXB Brambles Limited G G 17,699.1 Tim Mann
CAB Cabcharge Australia Limited G G 621.4 Daniel Mueller
CDD Cardno Limited G G 548.0 Tim Mann
DOW Downer EDI Limited G G 1,933.2 Ross MacMillan
GWA GWA Group Limited G G 766.3 Tim Mann
LEI Leighton Holdings Limited G G 7,423.4 Ross MacMillan
MQA Macquarie Atlas Roads Group G G 1,693.2 Adrian Atkins
MMS McMillan Shakespeare Limited G G 985.8 Gareth James
MIN Mineral Resources Limited G G 1,415.8 Mathew Hodge
MRM MMA Offshore Limited G G 300.5 Tim Mann
MND Monadelphous Group Limited G G 919.8 Ross MacMillan
QAN Qantas Airways Limited G G 6,303.5 Ross MacMillan
QUB Qube Holdings Limited G G 3,036.8 Ross MacMillan
REC Recall Holdings Limited G G 2,459.2 Ross MacMillan
SAI SAI Global Limited G G 908.5 Gareth James
SEK SEEK Limited G G 5,948.0 Gareth James
SVW Seven Group Holdings Limited G G 2,207.1 Tim Mann
SKE Skilled Group Limited G G 330.3 Tim Mann
Current Coverage – S&P/ASX 200
4 Equity Research Coverage Morningstar Equities Research | March 2015 5
Morningstar Sector ASX Code Company ameS&P/ASX
100S&P/ASX
200S&P/ASX
Small OrdsMarket Cap (A$m)
11 Mar 2015 Morningstar Analyst
SPO Spotless Group Holdings Limited G G 2,284.4 Tim Mann
SYD Sydney Airport G G 11,635.1 Adrian Atkins
TOL Toll Holdings Limited G G 6,335.0 Ross MacMillan
TME Trade Me Group Limited G G 1,515.9 Nachiket Moghe, CFA
TSE Transfield Services Limited G G 735.4 Ross MacMillan
TPI Transpacific Industries Group Ltd G G 1,216.4 Tim Mann
TCL Transurban Group G G 17,881.1 Adrian Atkins
UGL UGL Limited G G 270.6 Ross MacMillan
VED Veda Group Limited G G 2,037.8 Nathan Zaia
Materials ABC Adelaide Brighton Limited G G 2,917.2 Tim Mann
AWC Alumina Limited G G 4,967.0 Mark Taylor
AMC Amcor Limited G G 17,183.2 Tim Mann
ARI Arrium Limited G G 572.8 Mathew Hodge
BHP BHP Billiton Limited G G 104,829.6 Mark Taylor
BSL BlueScope Steel Limited G G 2,639.6 Mathew Hodge
BLD Boral Limited G G 4,766.9 Tim Mann
CSR CSR Limited G G 1,953.2 Tim Mann
DLX DuluxGroup Limited G G 2,428.4 Mathew Hodge
FBU Fletcher Building Limited G G 5,709.2 Tim Mann
FMG Fortescue Metals Group Ltd G G 6,694.7 Mathew Hodge
ILU Iluka Resources Limited G G 3,370.5 Mathew Hodge
IPL Incitec Pivot Limited G G 6,652.2 Mark Taylor
IGO Independence Group NL G G 1,276.7 Mathew Hodge
JHX James Hardie Industries Plc G G 6,711.8 Tim Mann
MGX Mount Gibson Iron Limited G G 245.4 Mathew Hodge
NCM Newcrest Mining Limited G G 10,179.3 Mathew Hodge
NUF Nufarm Limited G G 1,926.2 Gareth James
ORI Orica Limited G G 7,633.8 Mark Taylor
ORA Orora Limited G G 2,859.8 Tim Mann
OZL OZ Minerals Limited G G 1,125.9 Mathew Hodge
PGH Pact Group Holdings Ltd G G 1,279.5 Tim Mann
PNA PanAust Limited G G 805.9 Mark Taylor
RRL Regis Resources Limited G G 699.7 Mark Taylor
RIO Rio Tinto Limited G G 26,315.5 Mark Taylor
SFR Sandfire Resources NL G G 694.5 Mark Taylor
SGM Sims Metal Management Limited G G 2,616.8 Andrew Lane
WSA Western Areas Limited G G 937.3 Mathew Hodge
Telecommunications Services IIN iiNET Limited G G 1,077.1 Daniel Mueller
MTU M2 Group Ltd G G 1,806.3 Daniel Mueller
SGT Singapore Telecommunications Limited G G 504.6 Daniel Mueller
SPK Spark New Zealand Limited G G 5,797.9 Daniel Mueller
TLS Telstra Corporation Limited G G 76,777.1 Daniel Mueller
Current Coverage – S&P/ASX 200
6 Equity Research Coverage Morningstar Equities Research | March 2015 7
Morningstar Sector ASX Code Company ameS&P/ASX
100S&P/ASX
200S&P/ASX
Small OrdsMarket Cap (A$m)
11 Mar 2015 Morningstar Analyst
TPM TPG Telecom Limited G G 5,985.3 Daniel Mueller
Utilities AGL AGL Energy Limited G G 10,138.8 Gareth James
APA APA Group G G 10,463.3 Adrian Atkins
AST AusNet Services G G 5,165.7 Adrian Atkins
DUE DUET Group G G 3,793.9 Adrian Atkins
SKI Spark Infrastructure Group G G 3,006.0 Adrian Atkins
Current Coverage – S&P/ASX 200
6 Equity Research Coverage Morningstar Equities Research | March 2015 7
Current Coverage – ex S&P/ASX 200
ASX Code Company ameS&P/ASX
100S&P/ASX
200S&P/ASX
Small OrdsMarket Cap (A$m)
11 Mar 2014 Morningstar Analyst
AHD Amalgamated Holdings Limited 1,873.4 Brian Han
ACR Acrux Limited G 141.5 Chris Kallos
AIZ Air New Zealand Limited 3,171.6 Ross MacMillan
LEP ALE Property Group 677.1 Adrian Atkins
AMM Amcom Telecommunications Limited G 690.0 Daniel Mueller
AIA Auckland International Airport Limited G 5,178.6 Nachiket Moghe, CFA
BKL Blackmores Limited 838.7 Chris Kallos
BKW Brickworks Limited 2,002.0 Tim Mann
BTT BT Investment Management Limited 2,526.4 Nathan Zaia
CNU Chorus Limited G 1,109.8 Daniel Mueller
DWS DWS Limited 135.7 Gareth James
EBO EBOS Group Limited 1,265.0 Chris Kallos
ERA Energy Resources of Australia Limited G 696.3 Mark Taylor
FPH Fisher & Paykel Healthcare Corp Limited 3,621.0 Nachiket Moghe, CFA
FSF Fonterra Shareholders' Fund G 680.5 Nachiket Moghe, CFA
GNE Genesis Energy Limited 2,180.0 Nachiket Moghe, CFA
GFF Goodman Fielder Limited 1,310.2 Farina Parsons
GOZ Growthpoint Properties Australia G 1,735.5 Tony Sherlock
HPI Hotel Property Investments G 398.9 Adrian Atkins
IFZ Infratil Limited 1,689.1 Nachiket Moghe, CFA
IPP Iproperty Group Limited G 507.8 Gareth James
ISD iSentia Group Limited G 680.0 Brian Han
KCN Kingsgate Consolidated Limited G 172.2 Mark Taylor
MYX Mayne Pharma Group Limited G 686.1 Chris Kallos
MEZCA Meridian Energy Limited 2,498.3 Nachiket Moghe, CFA
MYT Mighty River Power Limited 4,690.0 Nachiket Moghe, CFA
MVF Monash IVF Group Limited G 340.8 Chris Kallos
NSR National Storage REIT G 459.7 Tony Sherlock
NHC New Hope Corporation Limited 2,135.7 Mathew Hodge
NHF NIB Holdings Limited 1,624.3 David Ellis
NWH NRW Holdings Limited G 69.7 Ross MacMillan
NPX Nuplex Industries Limited 620.1 Mathew Hodge
RKN Reckon Limited G 209.6 Gareth James
SMX SMS Management and Technology Limited G 252.3 Gareth James
TRS The Reject Shop Limited G 207.7 Farina Parsons
TGA Thorn Group Limited G 416.2 Daniel Mueller
TWR Tower Limited 408.0 Nathan Zaia
TOX Tox Free Solutions Limited G 386.5 Tim Mann
TRG Treasury Group Limited G 349.7 Nathan Zaia
VAH Virgin Australia Holdings Limited 1,727.2 Ross MacMillan
SOL Washington H. Soul Pattinson and Co. Limited 3,274.9 Mathew Hodge
ZNZ Z Energy Limited 1,804.0 Mark Taylor
8 Equity Research Coverage Morningstar Equities Research | March 2015 8
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ASX Code Company ameS&P/ASX
100Market Cap (A$m)
11 Mar 2014 Morningstar Analyst
AIR-NZ Air New Zealand Limited 3,312.0 Ross MacMillan
AIA-NZ Auckland International Airport Limited G 5,393.0 Nachiket Moghe, CFA
BGR-NZ Briscoe Group Limited 641.7 Nachiket Moghe, CFA
CNU-NZ Chorus Limited 1,141.5 Daniel Mueller
CEN-NZ Contact Energy Limited G 4,495.5 Nachiket Moghe, CFA
EBO-NZ EBOS Group Limited 1,548.3 Chris Kallos
FPH-NZ Fisher & Paykel Healthcare Corp Limited G 3,766.0 Nachiket Moghe, CFA
FBU-NZ Fletcher Building Limited G 5,922.4 Tim Mann
FSF-NZ Fonterra Shareholders' Fund 704.6 Nachiket Moghe, CFA
FRE-NZ Freightways Limited 973.5 Nachiket Moghe, CFA
GNE-NZ Genesis Energy Limited 2,335.0 Nachiket Moghe, CFA
GMT-NZ Goodman Property Trust G 1,443.8 Tony Sherlock
IFT-NZ Infratil Limited G 1,784.0 Nachiket Moghe, CFA
KMD-NZ Kathmandu Holdings Limited 304.2 Farina Parsons
KPG-NZ Kiwi Property Group Limited 1,497.7 Tony Sherlock
MFT-NZ Mainfreight Limited 1,612.1 Nachiket Moghe, CFA
MELCA-NZ Meridian Energy Limited G 2,598.7 Nachiket Moghe, CFA
MHI-NZ Michael Hill International Limited 463.6 Nachiket Moghe, CFA
MRP-NZ Mighty River Power Limited G 4,736.2 Nachiket Moghe, CFA
NPX-NZ Nuplex Industries Limited 638.0 Mathew Hodge
POT-NZ Port of Tauranga Limited 2,270.4 Nachiket Moghe, CFA
PCT-NZ Precinct Properties New Zealand Limited 1,333.4 Tony Sherlock
RYM-NZ Ryman Healthcare Limited G 4,000.0 Nachiket Moghe, CFA
SKT-NZ Sky Network Television Limited G 2,218.1 Nachiket Moghe, CFA
SKC-NZ SkyCity Entertainment Group Limited G 2,420.4 Brian Han
SPK-NZ Spark New Zealand Limited G 6,054.8 Daniel Mueller
TWR-NZ Tower Limited 413.0 Nathan Zaia
TME-NZ Trade Me Group Limited G 1,555.6 Nachiket Moghe, CFA
TPW-NZ TrustPower Limited 2,547.1 Nachiket Moghe, CFA
VCT-NZ Vector Limited 2,997.2 Nachiket Moghe, CFA
WHS-NZ Warehouse Group Limited (The) 967.7 Nachiket Moghe, CFA
ZEL-NZ Z Energy Limited 1,936.0 Mark Taylor
Current Coverage - New Zealand Listed Companies