Last year was an extraordinary year. There were some big performances in the ASX 200 (ASX: XJO). This article is about the three best performers, and how it happened.
COVID-19 completely changed the world. You may not have thought that a global pandemic and recession would mean any share would be able to more than double its share price. But there were a few:
Bronze medal: Fortescue Metals Group Ltd (ASX: FMG)
The Fortescue share price went up almost 120% during 2020, ending at $23.43. In March the share price fell below $9.
China was among the first to recover from the impacts of COVID-19. Its appetite for Australian iron ore has continued to remain very strong. The production difficulties in Brazil, partly due to COVID-19, has seen the iron ore price rise and the demand went to Australia.
In FY20 Fortescue revealed that it grew revenue by 29% to US$12.8 billion. This was achieved with record shipments – up 6% to 178.2 million tonnes and a 21% increase in the average realised price to US$79 per dry metric tonne (dmt). Underlying net profit after tax (NPAT) improved by 49% to US$4.7 billion.
The full year dividend increased to $1.76, up 54% on the prior year.
Silver medal: Mineral Resources Ltd (ASX: MIN)
The Mineral Resources share price went up close to 130% to $37.45. In March the shares hit a low of $12.61.
This company is a diversified commodity business. It is a miner, but it also has other divisions such as mining services. The two key commodities that it produces includes iron ore and lithium.
Just like Fortescue, Mineral Resources has been benefiting from the strength of the iron ore price. In the FY20 result Mineral Resources reported that its underlying profit went up 63% to $334 million.
Gold medal: Afterpay Ltd (ASX: APT)
Buy now, pay later company Afterpay was the best performer over 2020. The Afterpay share price went up 285% in 2020.
Afterpay shares performed even stronger than the level of its underlying sales. In the FY20 result it said that global underlying sales went up 112% to $11.1 billion, active customers rose 116% to 9.9 million and active merchants went up 72% to 55,400. Afterpay total income grew by 103% to $502.7 million.
Its FY21 first quarter had a strong underlying sales performance in all regions. Underlying sales went up 115% to $4.1 billion for the quarter.
Who knows which ASX growth shares will be the best performers in 2021? I think one good idea could be Pushpay Holdings Ltd
(ASX: PPH).
