FY21 underlying NPAT beat market expectations by ~5%, driven by 2H margin expansion as ALQ continues to astutely manage costs/capacity. ALQ expects strong operating leverage to improving 1H22 volumes to offset the cost of adding new capacity and labour constraints in Geochem. We lift our FY22-24 EPS forecasts by 4-11% driven predominantly by a lift in assumed Commodities margins close to 30% reflecting the sector outlook. Our blended valuation adjusts to A$11.56ps (from A$10.35) but we downgrade to Hold after ALQ’s strong run.
- 1 Macro Analysis/Global G7 reiterates support for SDR allocation and seeks to boost its impact
- 2 Strategy Note/Global G7's 'Build Back Better World' is not an answer to China's Belt and Road
- 3 Strategy Note/Vietnam Vietnam: The best emerging market is still spoilt by foreign ownership limits
- 4 Macro Analysis/Pakistan Pakistan's FY22 Federal Budget – Serious push on growth
- 5 Strategy Note/Global Egypt's military spend is not securing the Nile in its dispute with Ethiopia
This publication is being distributed by Tellimer solely for information purposes irrespective of a particular user's means, financial situation or investment objectives. The information does not con...