New Zealand Professional Investment Services Firm, Forsyth Barr

Forsyth Barr

New Zealand Professional Investment Services Firm

We are proud to be a New Zealand owned firm, with 21 offices throughout the country and over 300 employees. We assist personal, institutional and corporate clients providing a full range of investment services.

Forsyth Barr is a foundation New Zealand Exchange firm (NZX) and accredited market participant. We have been confirmed by the Financial Markets Authority as a Qualifying Financial Entity (QFE).

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Equity Bottom-Up

<ul><li>Napier Port (NPH) reported a strong FY24 result, boosted by the post-Cyclone Gabrielle volume recovery and pricing initiatives.</li><li>Management appears confident that earnings growth can continue in FY25, despite the closure of key customer WPI and resultant loss of significant container volume.</li><li>Pan Pac’s recovery, a solid apple harvest, robust log exports, and further pricing initiatives should be supportive. </li></ul>

Napier Port (NPH) reported a strong FY24 result, boosted by the post-Cyclone Gabrielle volume recovery and pricing initiatives.Management appears confident that earnings growth can continue in FY25, despite the closure of key customer WPI and resultant loss of significant container volume.Pan Pac’s recovery, a solid apple harvest, robust log exports, and further pricing initiatives should be supportive. 

<ul><li>One of Napier Port's (NPH) largest customers is shutting down permanently, which will result in a headwind to FY25 earnings growth.</li><li>Winstone Pulp International (WPI) announced a temporary closure of its timber mills last month, and following employee consultation, a final decision to close permanently has been made.</li><li>NPH has suggested that WPI currently contributes EBITDA of around ~NZ$4m, largely reflecting pulp and timber exports that are containerised at its Port Pack facility. </li></ul>

One of Napier Port's (NPH) largest customers is shutting down permanently, which will result in a headwind to FY25 earnings growth.Winstone Pulp International (WPI) announced a temporary closure of its timber mills last month, and following employee consultation, a final decision to close permanently has been made.NPH has suggested that WPI currently contributes EBITDA of around ~NZ$4m, largely reflecting pulp and timber exports that are containerised at its Port Pack facility. 

<div><div><div><div><ul><li>Napier Port's (NPH) third quarter result highlights: (1) further recovery from Cyclone Gabrielle, as volume improvements generate meaningful operating leverage, and (2) an immaterial impact from the current (temporary) high electricity price, driving plant closures among key customers.</li><li>Consequently, management has retained its full year earnings guidance (EBITDA range of NZ$50m–N$53m), which should lead to further strong growth in FY25.</li><li>NPH appears cheap against peers and against its own trading history. Its one year forward PE discount to larger sector peer, Port of Tauranga (POT), is the widest (&gt;40%) it's been since NPH listed in 2019. </li></ul></div></div></div></div>

Napier Port's (NPH) third quarter result highlights: (1) further recovery from Cyclone Gabrielle, as volume improvements generate meaningful operating leverage, and (2) an immaterial impact from the current (temporary) high electricity price, driving plant closures among key customers.Consequently, management has retained its full year earnings guidance (EBITDA range of NZ$50m–N$53m), which should lead to further strong growth in FY25.NPH appears cheap against peers and against its own trading history. Its one year forward PE discount to larger sector peer, Port of Tauranga (POT), is the widest (&gt;40%) it's been since NPH listed in 2019. 

Napier Port - 3Q24 Result — Voyage of Recovery

<ul><li>We upgrade Napier Port (NPH) to OUTPERFORM from NEUTRAL following a strong 1H24 result, which again highlighted its effective pricing power.</li><li>A +25% increase in EBITDA (against the prior year) was largely driven by unit revenue gains in its container and cruise operations. ​​​​​​​</li><li>We expect the company to continue to use pricing as a strategic lever to grow earnings and lift returns. In the near term this will be supported by a full Cyclone Gabrielle volume recovery. </li></ul>

We upgrade Napier Port (NPH) to OUTPERFORM from NEUTRAL following a strong 1H24 result, which again highlighted its effective pricing power.A +25% increase in EBITDA (against the prior year) was largely driven by unit revenue gains in its container and cruise operations. ​​​​​​​We expect the company to continue to use pricing as a strategic lever to grow earnings and lift returns. In the near term this will be supported by a full Cyclone Gabrielle volume recovery. 

Napier Port - 1H24 — Wharf a Bit More Than We Port

<ul><li>Napier Port's (POT) 1H24 trade volumes were mixed but in aggregate should contribute to a strong sequential profit bounce following a weak 2H23 which was materially impacted by Cyclone Gabrielle.</li><li>First half container volumes fell -17% against the prior year, but this shortfall should be more than made up for by a strong lift in bulk cargo tonnage (+22%) and an additional 26 cruise vessel calls.</li><li>Log exports were particularly strong, helped by central North Island windthrown related harvesting and additional unprocessed log volume from the Pan Pac closure. </li></ul>

Napier Port's (POT) 1H24 trade volumes were mixed but in aggregate should contribute to a strong sequential profit bounce following a weak 2H23 which was materially impacted by Cyclone Gabrielle.First half container volumes fell -17% against the prior year, but this shortfall should be more than made up for by a strong lift in bulk cargo tonnage (+22%) and an additional 26 cruise vessel calls.Log exports were particularly strong, helped by central North Island windthrown related harvesting and additional unprocessed log volume from the Pan Pac closure. 

New Zealand

Napier Port Holdings Limited provides shipping services. The Company offers transportation for cargo and passenger. Napier Port Holdings serves customers in New Zealand.

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Napier Port (NPH NZ)

Napier Port - FY24 — Dividends Ahoy!

Napier Port (NPH) reported a strong FY24 result, boosted by the post-Cyclone Gabrielle volume recovery and pricing initiatives. Management appears...

Forsyth Barr

Napier Port - WPI Closure Hurts

One of Napier Port's (NPH) largest customers is shutting down permanently, which will result in a headwind to FY25 earnings growth.

Forsyth Barr

Napier Port - 3Q24 Result — Voyage of Recovery

Consequently, management has retained its full year earnings guidance (EBITDA range of NZ$50m–N$53m), which should lead to further strong growth in...

Forsyth Barr

Napier Port - 1H24 — Wharf a Bit More Than We Port

We upgrade Napier Port (NPH) to OUTPERFORM from NEUTRAL following a strong 1H24 result, which again highlighted its effective pricing power.

Forsyth Barr

Napier Port - First Half Whiplash

Log exports were particularly strong, helped by central North Island windthrown related harvesting and additional unprocessed log volume from the...

Forsyth Barr

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