New Zealand Professional Investment Services Firm

Forsyth Barr

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.

New Zealand Professional Investment Services Firm, Forsyth Barr

Equity Bottom-Up

<ul><li>Following a weak update three weeks ago, AFT Pharmaceuticals' (AFT) 1H25 result had few surprises and we have again materially downgraded our forecasts.</li><li>This hurts. That said, we don't view any of the recent issues as structural, and we think the growth story remains well intact.</li><li>AFT has set a FY27 revenue target of NZ$300m (~+17% CAGR from FY24), which we view as achievable in light of its track record. ​​​​​​​Placing AFT's defensive and strong performing ANZ business on ~11x EV/EBIT (~-30% discount to the NZ market median), implies investors are paying nothing for International and SE Asia, despite FY25E revenue of ~NZ$30m, and significant optionality through multiple growth drivers. OUTPERFORM.</li></ul>

Following a weak update three weeks ago, AFT Pharmaceuticals' (AFT) 1H25 result had few surprises and we have again materially downgraded our forecasts.This hurts. That said, we don't view any of the recent issues as structural, and we think the growth story remains well intact.AFT has set a FY27 revenue target of NZ$300m (~+17% CAGR from FY24), which we view as achievable in light of its track record. ​​​​​​​Placing AFT's defensive and strong performing ANZ business on ~11x EV/EBIT (~-30% discount to the NZ market median), implies investors are paying nothing for International and SE Asia, despite FY25E revenue of ~NZ$30m, and significant optionality through multiple growth drivers. OUTPERFORM.

AFT Pharmaceuticals - 1H25 Result; No Pain, No Gain