Baptista initiates on BHP, CSL and Qantas – with a big whiff of AI
Fund managers have never heard of them; neither have the companies that they are covering – unusual given analysts often have deep connections to the businesses they produce research about as they try to generate better insights and, hopefully, lead their clients to make better investments.
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The Australian
3 hours ago
- The Australian
ASX banks, telcos lead market higher after Trump's EU deal
Australia's sharemarket snapped a brief two day losing streak on Monday after US President Donald Trump announced his latest trade deal and the major banks bounced back from their recent falls. The benchmark ASX 200 index closed up 30.8 points or 0.36 per cent at 8697.7 after hitting an intraday high of 8704.9, while the broader All Ordinaries finished in the green up 29.20 points or 0.33 per cent to 8,963.50. The Australian dollar slipped from a nine-month high on Friday buying 65.51 US cents at the time of writing. On an overall positive day, eight of the 11 sectors finished in the green, led by the telecommunications sector, the big four banks and healthcare stocks. The ASX had a good day after Donald Trump announced a trade deal with the EU. Picture: Gaye Gerard / NewsWire Shares in Telstra gained 0.81 per cent to $4.95, REA Group jumped 1.34 per cent to $236.09 and CAR group added 1.72 per cent to $37.89. Market heavyweight CBA gained 1.17 per cent to $174.90 offsetting half the falls in recent days, while NAB gained 0.67 per cent to $37.76, Westpac added 0.54 per cent to $33.21 and ANZ group closed 0.30 per cent higher at $30.31. Healthcare darling CSL gained 1 per cent to $270.59, Sigma Healthcare added 1.41 per cent to $2.88 and ResMed finished 0.97 per cent higher to $41.70. The markets jumped after US President Donald Trump announced a deal with the EU to end four months of negotiations between the two economic powerhouses. Following the discussions, the EU will face a 15 per cent tariff from the US, which is down from the 25 per cent the President announced in April. European Commission chief Ursula von de Leyen described it as 'a big deal, a huge deal, bringing: stability and predictability' to the two trading partners. IG market analyst Tony Sycamore said global markets around the world jumped on these trade deals. European Commission president Ursula von der Leyen and US President Donald Trump announced the deal on Sunday. Picture: Brendan Smialowski / AFP) 'In terms of the trade deals with Japan and Europe, the tariff rate that will be implemented came in lower than initially threatened and the market is looking very positively on it,' Mr Sycamore said. Uranium shares were one of the rare misses during Monday's trading, dragged down by news out of Boss Energy which flagged challenges out of its Honeymoon uranium project. Boss Energy shares plummeted 43.97 per cent to $1.90, Deep Yellow fell 8.34 per cent to $1.65 and Paladin Energy dropped 4.43 per cent to $6.91. 'That is the uranium sector in a nutshell,' he said. 'It is one where you have to be prepared for extraordinary volatility. 'This was a disappointing performance day and a disappointing report by Boss Energy.' In company news, Helloworld Travel shares soared 14.14 per cent to $1.69 after the business upgraded its guidance to somewhere between $58-$62m. Stealth Group's shares also soared 11.02 per cent to $0.70 after announcing a 50 per cent jump in pre-orders on the back of the soon to be released iPhone 17. Bubs Australia shares jumped 2.94 per cent to $0.18 after the infant formula maker announced Joe Cootes as its new chief executive, effective immediately. Read related topics: ASXDonald Trump
The Australian
3 hours ago
- The Australian
BHP signs deal with China's CATL despite US Pentagon blacklist
Mining heavyweight BHP has struck an agreement with two of China's most powerful battery manufacturers, including one currently blacklisted by the United States Department of Defence. The memorandums of understanding (MoU) signed this week will see Chinese battery giants - BYD's battery subsidiary FinDreams, and Contemporary Amperex Technology (CATL), collaborate on electrifying heavy-duty mining equipment, developing fast-charging infrastructure, and advancing battery recycling technologies across BHP mines. CATL is the largest EV battery supplier in the world, with clients ranging from Tesla, Volkswagen and Toyota. MORE: Massive car companies stop all US imports Chinese battery manufacturer CATL's domestic car business chief technology officer (CTO) Gao Huang speaks at CATL Tech Day ahead of the Shanghai Auto Show in Shanghai on April 21, 2025. (Photo by WANG Zhao / AFP) MORE: Car giant's $7 billion loss, 20k staff sacked But in January this year, the Pentagon added CATL to its official blacklist, flagging it as a 'Chinese military company' with links to Beijing's military-industrial complex. US Representative House Select Committee on China chairman John Moolenaar warned that companies like CATL were a serious threat to the country. 'We cannot allow these loaded guns to threaten our economy and security,' he told CBT news. The designation, under Section 1260H of the US National Defence Authorisation Act does not act as a ban, but warns American entities from investing in the company due to national security concerns. BHP did not address the blacklisting in its statement but BHP group procurement officer Rashpal Bhatti said the move is part of its long term strategy to achieve net-zero greenhouse gas emissions from its operations by 2050. 'This strategic relationship marks further progress in BHP's work to reduce greenhouse gas emissions from our operations and enable support for further developments within the global resources sector,' he said. MORE: Inside China's total domination of Australia BHP is moving to transform their haul truck fleets into battery-electric powered machines. Picture: Supplied CATL head of overseas business Tan Libin said it would collaborate with BHP on a number of areas. 'Together with forward-thinking resources companies like BHP, we aim to demonstrate how advanced battery technologies can decarbonise mining operations, logistics, and product delivery, accelerating a more sustainable, efficient future while creating long-term value and transforming the global resources industry through innovation,' he said. While the transition to electric mining fleet is a great step forward, experts say it also introduces new safety risks that must be carefully managed. According to Swinburne University School of Engineering Professor Weixiang Shen said mine sites expose battery systems to 'extremely harsh' conditions, including heat, dust, vibration and humidity, all of which increase the risk of failure. He said fast charging can cause batteries to overheat rapidly, combined with the risk of internal short circuits or electrical sparks during equipment switching, this can lead to thermal runaway, a dangerous chain reaction that can result in fires or explosions. Scenic aerial golden hour sunrive over Broken Hill mining city in Far West NSW of Australia. Escape 13 April 2025 Hotlist Photo - iStock 'Mitigating these risks requires the development of purpose-designed battery energy and thermal management systems capable of real-time monitoring, control and cooling as well as explosion-proof enclosures, all tailored to mining environments,' he said. 'Together, these systems provide robust protection against environmental hazards, ensuring the safe and reliable operation of battery-powered equipment in mining applications.' Professor Shen added that lithium iron phosphate (LFP) batteries, which offer better thermal stability than other chemistries, are currently considered the safest option in high-risk settings like mine sites. BYD and CATL are currently dominating the global battery market. According to South Korean research firm SNE Research, CATL and BYD held 38.1 per cent and 17. 4 per cent of global EV battery market share from January to May this year. In China, CATL accounted for 43.7 per cent of battery installations in June alone. Currently the company has a market capitalisation of approximately A$263.61 billion. As of December 2024, CATL also holds nearly 63 per cent market share in the premium electric vehicle market, having supplied nearly 2.22 million cars so far. Danielle Collis Journalist and Reporter Danielle's background spans print, radio and television, she has contributed to outlets such as The Age, ABC, Channel Nine and many more. For more than four years, Danielle has worked as Liz Hayes' producer and investigative journalist on her show 'Under Investigation', covering everything from corporate scandals to Australia's most baffling crime cases. Danielle's covered a range of topics from breaking news, politics, lifestyle and now motoring. Danielle Collis
The Australian
3 hours ago
- The Australian
Tech-centric Bailador delivers strong FY25
Bailador reports strong FY25 with private portfolio companies delivering 33% IRR Six out of nine Bailador private portfolio companies achieved significant valuation uplifts Deployed $40.8m in strategic new and follow-on investments in FY25, positioning for long-term growth Special Report: Tech-centric capital fund Bailador Technology Investments recorded a standout FY25, marked by strategic capital deployment and strong growth across its private portfolio. Bailador Technology Investments (ASX:BTI) reported a 33% internal rate of return (IRR) in FY25 from its private portfolio companies with six of nine companies achieving significant valuation uplifts. With $40.8 million invested in new and follow-on deals and fully franked dividends of 7.1 cents paid to shareholders in FY25, Bailador co-founder David Kirk said it was well-positioned for continued momentum into FY26. 'The past 12 months have been defined by exceptional portfolio performance, new investments and the successful execution of our growth investment thesis,' he said. Kirk said the three key themes of strong IRR, targeted deployment of capital and dividend returns to shareholders had driven its success in FY25. Private portfolio drives performance, Updoc value increases 86% Private company investments were standout performers of FY25, he said, demonstrating the quality of its investment selection and strength of the technology sectors targeted. 'Updoc, the digital health platform we invested in in May 2024 has been a standout performer. 'Updoc has increased in value 86% ($17.2m) since we invested. 'We wrote Updoc up by 50% in December 2024 and another 24% in June 2025.' BTI reported a 59% uplift in the equity value of its investment in financial advice and investment management platform DASH. The company invested $30m in DASH in June 2024, including $25m in equity and $5m in debt. 'This uplift was in line with the latest capital raising price secured by DASH,' Kirk said. He said Dash's successful acquisition and integration of Integrated Portfolio Solutions (IPS) increased funds under administration from $4 billion to $17bn. 'The business delivered 50% revenue growth in H1 FY25. 'New partnerships with Stockspot, Pearler and an ASX 50 financial services business validate DASH's product leadership and provide scalable distribution channels.' Valuations of other investments also up The valuation of another private portfolio company Access Telehealth was increased by 20.8% ($5.5m) in June. 'The valuation increase followed robust revenue growth over the preceding 12 months and Access Telehealth delivering run rate profitability at the end of FY25,' Kirk said. BTI's investment in Hapana increased in value by 50% ($3.9m) since its investment in August 2024. The investment has accelerated the high-growth fitness studio management software's international expansion. 'Since that time Hapana has shown continued high revenue growth and strong unit economics,' Kirk said. 'We are pleased to report Hapana is successfully winning major global customers. Hapana secured major partnerships including powering Fitstop's ambitious US expansion strategy. BTI increased the value of its investment in Mosh by 33% ($2.5m) in December 2024 following a strong year of revenue growth by the business. Mosh is a digital healthcare service focused on men's health across hair loss, weight management, sexual and mental health. 'The management team has executed well in the competitive digital healthcare space,' Kirk said. The company also increased the value of Rosterfy by 14% ($1.7m) in October 2024 at the same time it completed a follow-on investment. Rosterfy provides volunteer and workforce management software to not-for-profit organisations, government volunteering bodies and mass-scale sporting and other events. 'We were pleased to see OIF also invest at the same valuation in December 2024,' Kirk said. Strategic realisations and minimal exposure cushion market challenges He noted that in June, BTI wrote its investment in Nosto down by 63% ($2.7m) following softer trading performance. 'Nosto is a small portion of our portfolio and after this write down, represents less than 1% of the portfolio.'. Nosto is a software company specialising in AI-powered personalisation for e-commerce. The performance of its two public positions was also somewhat muted in the financial year. The share price in hotel bookings platform SiteMinder (ASX:SDR) fell 13% YoY. However, Kirk said its $20m realisation in November 2024 at a price 31% above the June 2024 price crystallised some H1 FY25 gains and limited decline YoY to 5% ($4.4m). The share price in language tech company Straker (ASX:STG) declined 19% ($800,000) in FY25. Strategic capital deployment creates future value Kirk said BTI's disciplined approach to capital allocation had positioned the portfolio for continued strong performance. 'We remain confident in our ability to identify and partner with high-quality growth companies at attractive valuations.' BTI invested $12.5m in an AI-enabled property investment platform PropHero in February 2025 using predictive AI models to aggregate data and tailor investment property recommendations. 'PropHero is delivering very strong revenue growth and we are pleased with progress since our investment,' Kirk said. Its follow-on investments in established portfolio companies, he said, demonstrated its commitment to supporting high-performing businesses through their growth phases. Source: BTI Committed to shareholder returns Bailador distributed 7.1 cents to shareholders in fully franked dividends during FY25. 'Our total shareholder return for FY25 from dividend payments (grossed up for franking credits) and capital appreciation was 8.4%,' Kirk said. 'This return is after tax and all fees. 'We expect continued strong growth from our private portfolio in FY26 and further progress and growth from our large position in publicly listed SiteMinder.' This article was developed in collaboration with Bailador Technology Investments, a Stockhead advertiser at the time of publishing. This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.
