CSL Limited
Strong Sales Underpinned by Specialty Products: CSL Limited (ASX: CSL) ended FY 2018 with total sales amounting to $6.6 billion which implies the YoY growth of 11% aided by the positive momentum by almost all the product categories. However, in particular, the robust momentum was evidenced in Immunoglobulins as well as Specialty products as their sales rose 11% and 24%, respectively in FY 2018 on the YoY basis.
Geographical contribution to sales (Source: Company Presentation)
Coming to the geographical contributions, the company has generated 46% of the total sales from North America region while from Asia Pacific, European Union and Emerging Markets, it managed to garner 17%, 28% and 9%, respectively. The management stated that increased demand for Immunoglobulins was helped by the higher utilisation of the chronic therapies. However, higher disease awareness as well as diagnosis also helped the heightened demand.
The sales from Haemophilia amounted to $1.1 billion in FY 2018 implying the YoY growth of 5%. The management reflected favourable views for Idelvion and stated that it has been witnessing robust performance since it was launched in the US back in the year 2016. This momentum was also witnessed in the Afstyla. It has been launched in 14 countries. The adoption of Afstyla has also been witnessing positive momentum.
CSL Limited witnessed sales amounting to $921 million in FY 2018 from Albumin which implies the YoY growth of 7%. The management reflected its sales from China has witnessed the growth of 11%. It has also witnessed expansion in the Tier 2&3 cities. However, the company generated sales from Specialty products of $1.5 billion.
Robust demand from plasma and recombinant products would provide support in FY 2019: In FY 2019, CSL Limited is expected to witness favourable momentum in the demand for the recombinant as well as plasma products. The company plans to make deployments moving forward in order to achieve the growth prospects. In FY 2019, CSL Limited is expected to incur capital expenditure or CAPEX amounting to around $1.2-$1.3 billion. It would also be making investments in the research and development or R&D. The company is expected to witness robust collections growth. In FY 2019, the company plans to come up with approximately 30-35 centres.
Technical Overview: Moving Average Convergence Divergence or MACD has been applied on the daily chart of CSL Limited by incorporating the default values. After careful observation, it was seen that MACD line has just crossed the signal line and it would be very early to comment on the direction given the already high levels. Therefore, we suggest that the market players should wait and watch the stock at the current price of A$181.150 per share.
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