MFT - Mainfreight

[Shareguy]

Outstanding

Outlook
We are satisfied with this financial performance for the first six months of our financial year.

Trading post half-year, through the five weeks of October and into November, has seen revenue levels increase by 2% over the prior year and profit before tax up 11%.

We continue to be confident of trading conditions for the remainder of the financial year, albeit cognisant of economic headwinds and declining sea freight rates and volumes leading into the New Year. We remain focused on increased growth, with all divisions continuing to see new customer opportunities.

Accordingly, we continue to invest in our network infrastructure for the long term across all regions

[winner (n)]

Still track for FY $480m or >$4.75 EPS

Might need to increase my expectations / forecast though

[Shareguy]

Yes Winner I agree it's a great result


Revenue $3 billion Up $729 million or 32%
Profit before tax $301.71 million Up $120 million or 66%
Net profit $217.02 million Up $ 86 million or 66%

Fbar had $205 m net profit.

[Shareguy]

At market close yesterday SP$73.35 and winners EPS of $4.75 FY23 is a PE of 15.4

At $100 a share is still only a PE of 21

[Shareguy]

Adjusted for foreign exchange impact, Group Revenue is up 26.3%, Profit before tax is 57.8%, and Net profit is 57.7%.
• An interim dividend of 85.0 cents per share has been set by the Board of Directors, payable on 16 December 2022; an increase of 54.5%.

[winner (n)]

NPBT Trend F23

1st 16 weeks  +86% v pcp
Next 10 weeks +43% v pcp
Next 5 weeks  +11% v pcp

Is there a trend showing up here?

Wonder what they'll say about the 12 weeks to end of January --- they say we are all interested so will announce something begnning of February

[Basil]

NPBT Trend F23

1st 16 weeks  +86% v pcp
Next 10 weeks +43% v pcp
Next 5 weeks  +11% v pcp

Is there a trend showing up here?

Wonder what they'll say about the 12 weeks to end of January --- they say we are all interested so will announce something begnning of February

Great company no question and fabulous result but yes I think the outlook commentary was quite cautious and the market clearly thinks that is the start of a new trend.

[Shareguy]

Great company no question and fabulous result but yes I think the outlook commentary was quite cautious and the market clearly thinks that is the start of a new trend.

Yes caution warranted. Result was excellent but was expected after announcing beforehand a investor update. Don Braid has a history of exceeding expectations. Glad to have this company in my portfolio.

[Basil]

Yes caution warranted. Result was excellent but was expected after announcing beforehand a investor update. Don Braid has a history of exceeding expectations. Glad to have this company in my portfolio.

Fabulous leadership with this company, no question about that!

[Shareguy]

Well said Don

Responding to recent political criticism of companies making outsized profits following the Covid-19 pandemic, managing director Don Braid said 75% of Mainfreight's result was earned offshore.

"We're attempting to grow our business globally and we bring those profits back to New Zealand, which the Government has a nice feed on through tax anyway.

"Frankly, I think the Government would be better to focus on the other troubles the economy has got, that they can control, and let businesses get on and do what they do."

[winner (n)]

Hey shareguy - seeing you liked the KMD TSR chart I did one for MFT

EX Morningstar info - shareholder returns include dividends reinvested

Pretty cool eh

You cannot view this attachment.

[Shareguy]

Craigs latest

Overweight rating retained
Since the investor day MFT's share price has gained 9%, and is now trading closer to peer PE multiples. We have slightly increased our Price Target to reflect forecast changes made today, but note our forecasts remain well below consensus. We retain an Overweight rating on value grounds (particularly the long-term outlook), but we do have some concern around sentiment given the impact of short-term headwinds.

Fbar latest


We lift our target price to NZ$87 from NZ$84 to reflect our medium term earnings revisions as outlined below and the further lift in peer company multiples. 

Price Target $81.10 (prev $77.00)

[Shareguy]

Testing 52 Week low. Tempting as it is to add. Confirmed downtrend and some big headwinds. Will watch and wait.

[Mr Cashflow]

Every dark cloud has a sliver lining. May be in 2024 or 2025.

[winner (n)]

Every dark cloud has a sliver lining. May be in 2024 or 2025.

Climate change has put paid to that saying about every dark cloud has a silver lining