NZ
A good result at EBOS – Underlying EBITDA grew +33% yoy $582mn (~10% organic growth, the rest M&A). Animal care grew EBITDA +24% to $99mn, while healthcare M&A grew to $517mn.
Retaining hold on the stock – we didn’t expect such a big surge in the stock’s price y’day but we think it’s the market being reassured that the Chemical Warehouse contract loss is well and truly priced in. Stock looks fairly valued.
Strong result at Scales in-line with expectations — EBITDA of $42mn with the main impact on horticulture being the cyclones. Global proteins sat flat and underlying NPAT guidance sits at $14-19mn for FY. Retain buy on this — we see value at $3.40 and under.
Business as usual at Channel Infrastructure — FY23 EBITDAF guidance bumped to $84-88mn. We continue to rate it as a buy. Price target $2.05. $310mn EBITDA at SkyCity, a little ahead of expectations. All cylinders firing now slightly above pre-Covid levels on a like-for-like basis. We like this as a value play — our on-the-ground data suggests tourism continues to be a major driver for the group, while the group’s legal liabilities in Australia look capped at ~$50mn. This is a “sin” stock and priced as such. Price target $3.30.
AUS
Woolworths was up as the supermarket giant was able to lift sales by +5.7% from last year and improved margins with flowed well, net profit after tax up +13.7% to $1,721m. This allowed WOW to increase its dividend +13% from last year, showing the quality defensive nature of business – BUY rated.Wisetech shares slumped -19.6% yesterday, when its result when its full-year earnings missed expectations, while guidance fell short of lofty valuation. Wisetech expects ‘high single-digit’ revenue growth and ‘double-digit’ EBITDA growth, which didn’t bode well with the market but the stock is still up +38% year to date, trading back where it was in May this year– maintain HOLD due to its still lofty valuation.
