Stocks

Tourism Holdings shares were up after releasing solid earnings guidance for the 2023 financial yea0, ahead of its 2023 half year result. The stock now trades at a 3.5 year high, well above post-Covid levels. Factoring in a 7-month contribution from Apollo Tourism and Leisure, Tourism Holdings expects 2023 full year net profit to be $48m, whilst projecting net profit of $75m for 2024 financial year. We feel Tourism Holdings is attractively priced and, in a position, to reintroduce its dividend at the end of its 2023 financial year.

Wine maker Delegat Group shares slipped despite delivering a modest result for the first half of the 2023 financial year. Operating revenue increased by +11.2% to $198.8m, as favorable currency and increased pricing offset lower volumes. However, this did not flow down well to the profit line. Operating net profit after tax was only a touch higher at +1.6%, reaching $40.2m, as higher operating expenses and elevated freight costs hit margins and profitability.

Scales Corporation shares managed to recover from recent lows last week after being oversold over the last 2 weeks. The full-year result ending December 2022 was mixed with China’s lockdowns affecting demand and pricing offset by its strong food business. Management still paid a half year dividend hinting things aren’t as bad as the market sell-off suggests given 11 of their 15 orchards were unaffected – ~72% of Scales’ output.

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.

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.