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).

Research is the cornerstone of our advice. We have one of New Zealand's leading teams of analysts. Our global affiliations ensure comprehensive research coverage of all major investment markets.

Thematic (Sector/Industry)

<div><div><div><div><ul><li>The June 2024 quarter was eventful for New Zealand's listed technology sector, with nine companies reporting results in May.</li><li>Gentrack's (GTK) share price continued its rapid ascent after it reported strong revenue growth in 1H24 and upgraded FY24 guidance.</li><li>Meanwhile, mid-caps Serko (SKO) and EROAD (ERD) reported robust FY24 results that were in line with guidance. </li></ul></div></div></div></div>

The June 2024 quarter was eventful for New Zealand's listed technology sector, with nine companies reporting results in May.Gentrack's (GTK) share price continued its rapid ascent after it reported strong revenue growth in 1H24 and upgraded FY24 guidance.Meanwhile, mid-caps Serko (SKO) and EROAD (ERD) reported robust FY24 results that were in line with guidance. 

Forsyth Barr Technology Digest - Edition 7 — Reporting Season Wrap Up

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<li>The recent surge in M&amp;A activity within the New Zealand tech sector has been notable for the significant takeover premiums on offer, driven by opportunistic overseas bidders taking advantage of lower sector valuations and a weaker NZD/USD.</li>
<li>Significant offer premiums for companies like Rakon (RAK) +174%, TASK (TSK) +103%, and EROAD (ERD) at +69%, underline the perceived undervaluation of these firms by foreign investors.</li>
<li>The average premium of +76% in bids made for NZ tech companies in the past 18 months hints at the divergence between international and domestic views of the sector. </li>
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The recent surge in M&amp;A activity within the New Zealand tech sector has been notable for the significant takeover premiums on offer, driven by opportunistic overseas bidders taking advantage of lower sector valuations and a weaker NZD/USD.
Significant offer premiums for companies like Rakon (RAK) +174%, TASK (TSK) +103%, and EROAD (ERD) at +69%, underline the perceived undervaluation of these firms by foreign investors.
The average premium of +76% in bids made for NZ tech companies in the past 18 months hints at the divergence between international and domestic views of the sector. 






Forsyth Barr Technology Digest - Edition 6 — M&A Activity Heats Up

<ul><li>The Forsyth Barr Technology Digest provides a snapshot of recent information relevant to the listed technology industries across New Zealand and around the globe.</li><li>We focus on three industry segments: Software &amp; Services, Technology hardware, and Semiconductors and equipment.</li><li>We aim to showcase what NZ technology is doing, provide updates on recent news at a company and technology level, present stock performance, and show relevant ratios.</li></ul>

The Forsyth Barr Technology Digest provides a snapshot of recent information relevant to the listed technology industries across New Zealand and around the globe.We focus on three industry segments: Software &amp; Services, Technology hardware, and Semiconductors and equipment.We aim to showcase what NZ technology is doing, provide updates on recent news at a company and technology level, present stock performance, and show relevant ratios.

Forsyth Barr Technology Digest - Edition 5 — Layoffs Resume

Equity Bottom-Up

<ul><li>Rakon (RAK) announced it has received a non-binding, indicative proposal from a ‘credible industry player’ to purchase 100% of the company in an all-cash offer of NZ$1.70 per share.</li><li>The ‘​​​​​​​incomplete and highly conditional’ offer represents a significant &gt;170% premium to RAK's last undisturbed trading price of NZ$0.62 and is well above our blended spot valuation.</li><li>The timing of the bid appears opportunistic, with RAK amid a cyclical industry downturn that has weighed heavily on its share price.</li></ul>

Rakon (RAK) announced it has received a non-binding, indicative proposal from a ‘credible industry player’ to purchase 100% of the company in an all-cash offer of NZ$1.70 per share.The ‘​​​​​​​incomplete and highly conditional’ offer represents a significant &gt;170% premium to RAK's last undisturbed trading price of NZ$0.62 and is well above our blended spot valuation.The timing of the bid appears opportunistic, with RAK amid a cyclical industry downturn that has weighed heavily on its share price.

Rakon Limited - NZ1.70 Per Share Offer Received

<ul><li>Rakon (RAK) reported a subdued 1H24 with cyclicality evident as its Positioning and Telecommunications revenues slowed considerably.</li><li>A -30% fall in group revenue from 1H23, gross margin erosion from 49.9% to 42.6%, and significant operating deleverage saw underlying EBITDA dive -81% to NZ$5.3m, including &gt;NZ$2m of non-recurring costs.</li><li>While we had anticipated a weak result, given recent peer updates, the magnitude of the decline surpassed our expectations. </li></ul>

Rakon (RAK) reported a subdued 1H24 with cyclicality evident as its Positioning and Telecommunications revenues slowed considerably.A -30% fall in group revenue from 1H23, gross margin erosion from 49.9% to 42.6%, and significant operating deleverage saw underlying EBITDA dive -81% to NZ$5.3m, including &gt;NZ$2m of non-recurring costs.While we had anticipated a weak result, given recent peer updates, the magnitude of the decline surpassed our expectations. 

Rakon Limited- 1H24 — Sector Weakness Deepens

New Zealand

Rakon Ltd. manufactures frequency control products.  The Company produces crystal and oscillator products for global positioning, wireless, networking, cellular, telecommunications, radio, and microwave products.

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Rakon Ltd (RAK NZ)

Forsyth Barr Technology Digest - Edition 7 — Reporting Season Wrap Up

The June 2024 quarter was eventful for New Zealand's listed technology sector, with nine companies reporting results in May.

Forsyth Barr

Forsyth Barr Technology Digest - Edition 6 — M&A Activity Heats Up

The average premium of +76% in bids made for NZ tech companies in the past 18 months hints at the divergence between international and domestic...

Forsyth Barr

Forsyth Barr Technology Digest - Edition 5 — Layoffs Resume

The Forsyth Barr Technology Digest provides a snapshot of recent information relevant to the listed technology industries across New Zealand and...

Forsyth Barr

Rakon Limited- 1H24 — Sector Weakness Deepens

Rakon (RAK) reported a subdued 1H24 with cyclicality evident as its Positioning and Telecommunications revenues slowed considerably.

Forsyth Barr

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52-week Range

Market Cap (USDm)

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Forsyth Barr Technology Digest - Edition 7 — Reporting Season Wrap Up

The June 2024 quarter was eventful for New Zealand's listed technology sector, with nine companies reporting results in May.

Forsyth Barr

Forsyth Barr Technology Digest - Edition 6 — M&A Activity Heats Up

The average premium of +76% in bids made for NZ tech companies in the past 18 months hints at the divergence between international and domestic...

Forsyth Barr

Forsyth Barr Technology Digest - Edition 5 — Layoffs Resume

The Forsyth Barr Technology Digest provides a snapshot of recent information relevant to the listed technology industries across New Zealand and...

Forsyth Barr

Rakon Limited - NZ1.70 Per Share Offer Received

Rakon (RAK) announced it has received a non-binding, indicative proposal from a ‘credible industry player’ to purchase 100% of the company in an...

Forsyth Barr

Rakon Limited- 1H24 — Sector Weakness Deepens

Rakon (RAK) reported a subdued 1H24 with cyclicality evident as its Positioning and Telecommunications revenues slowed considerably.

Forsyth Barr