FY21 was a tough year for HLO given COVID related travel restrictions. However, the result was better than expected. Tight cost control saw HLO keep losses and cash burn to a minimum. The 1H22 will continue to be a challenging for HLO given ANZ border restrictions and we have revised our forecasts. However with 80% vaccination rates, HLO is hopeful that international travel will return during 2H22. We expect earnings will fully recover in FY24. Given 65% upside to our valuation of A$3.03, we maintain an Add rating. The reopening of international borders is the key catalyst for the stock.