IVC’s 1H21 result was comfortably ahead of our expectations. Key positives: All divisions except for Singapore delivered improved earnings; Group operating EBITDA margin and ROCE (rolling 12-month) were higher; balance sheet remains healthy; cash conversion was strong at 102%. Key negatives: Short-term outlook in Australia and New Zealand remains uncertain due to the recent lockdowns; Singapore EBITDA fell 9% due to adverse FX movements and ongoing COVID restrictions. No outlook guidance was provided but management expects the Delta strain to lead to a softening of the funeral services sector once again in 2H21. We change FY21F/FY22F/FY23F operating EBITDA by -2%/+0%/+1%. Our target price rises to A$13.20 (from A$12.60) and we maintain our Add rating.