Asciano Group (AIO) Update

Submitted by Jim Thesiger on 28 May, 2008 - 17:59

Asciano Group (AIO) has a share price target of $6.50 from Australian stockmarket analyst Macquarie Research Equities.

Asciano Group (AIO) April volume tracker

Another solid month:

Key indicators remained positive through April with strong international container volume growth offsetting low single digit Hunter Valley export coal and automotive imports. Surprisingly, container imports continue to show strength despite concerns of a consumer discretionary slowdown.

April aggregate volume growth was 9%:

Industry volumes grew at a weighted average rate of 9% during April and were made up of 1) Container throughput at the 4 major ports was up 14%, with imports up 13% 2) Coal receivals at Newcastle port grew 4% 3) Car imports increased 2%

Year to date growth also 9%:

These volumes translate to weighted average volume growth of 9% for Asciano's fiscal year to date. The main highlight has been container volumes which are up 9% for the year to date. Offsetting this is slowing automotive imports which have averaged growth of 6% and only 4% in H2.

Valuation A$6.40 (unchanged)

Our last published sum of the parts DCF valuation is A$6.40 and price target is A$6.50 based on Valuation x (1+WACC) - Dividends.