Pavan Sharma

WBD continues to pay down leverage with a goal of 4x by end of year. A content powerhouse which trades cheaper than any peers. Retain buy.

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Channel Infrastructure is a pure-play infrastructure company. It is the biggest fuel import terminal in New Zealand, importing ~40% of NZ’s diesel, petrol and jet fuel. We initiate with a BUY rating at $1.50 and below.

WiseTech Global shares jumped +4.3% yesterday after reporting another strong result, where revenue grew +35% from last year to $378.8m and underlying net profit after tax jumped +40% from last year to $108.5m. The company signed up another major freight forwarding company — Knuhne + Nagel as a client.

We downgrade AIA to a Sell, due to its heightened valuation. But due to being an important infrastructure asset, we see attractive buying at around the low $7.00 area.

PGG Wrightson (PGW) shares edged lower on its result as it cut its interim dividend slightly from last year down to 12 cents per share, cautioning investors of further volatility and softening macroeconomic outlook and lowering their earnings outlook. PGW revealed a solid result for the first half of the 2023 financial year, where operating earnings (EBITDA) came in at $47.8m, which was a touch higher than the same corresponding period last year. Unfortunately downgraded their full year earnings (EBITDA) guidance down to $57m, from $62m due to cyclone related uncertainty, and weak economic outlook affecting real estate business.

We downgrade WiseTech to a hold; remain buy-rated on Spark, maintain hold on EBOS and remain hold-rated on Rio Tinto.