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S32 - South32 News Story

A$2.85 -0.0  -1.4%

Last Trade - 05/03/21

Sector
Basic Materials
Size
Large Cap
Market Cap £7.54bn
Enterprise Value £7.34bn
Revenue £4.18bn
Position in Universe 40th / 1857

BUZZ-UBS bullish on China-exposed Aussie miners in 2021; BHP, Rio Tinto top picks

Thu 21st January, 2021 4:57am
** UBS bullish on China's impact on Australian miners, with
expected 8.2% growth in the Chinese economy in 2021 to benefit
BHP Group  BHP.AX , Rio Tinto  RIO.AX  and Fortescue Metals
Group  FMG.AX  
    ** Says despite trade tensions, goods export values to China
have remained resilient; rising iron ore prices and growing iron
ore volumes are all positive tailwinds for iron ore exposed
companies
    ** Brokerage expects Chinese coal restrictions to have no
major impact on Whitehaven Coal  WHC.AX  & Coronado Global
Resources  CRN.AX , given low revenue exposure to China, and
ability to "shuffle" trade flows from China to other
destinations 
    ** Expects China's 2060 Carbon Neutral Plan to be beneficial
for Electric Vehicle (EV) and Copper exposed names such as OZ
Minerals  OZL.AX  and Sandfire Resources  SFR.AX  
    ** UBS picks Sims Metal Management, IGO Ltd  IGO.AX  and
South32  S32.AX  as likely to be biggest beneficiaries from
China trade
    ** Sees miners Western Areas  WSA.AX  and Bluescope Steel
 BSL.AX  fetching lower gains from China 
    ** Brokerage sees 29.8% growth in earnings for overall
resources sector in FY21, with miners likely seeing a 36.7%
growth
    ** Expects a 7.8% growth in earnings for the consumer
staples sector in FY21, above the consensus of a 4.5% growth 

    


 (Reporting by Riya Sharma in Bengaluru)
 ((Riya.Sharma@thomsonreuters.com;))
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