JBH’s 1H21 trading update highlighted a continuation of very strong growth trends, with LFL sales for JB Aust. +24% and TGG +26%. As a result of this very strong top-line growth, significant operating leverage has been experienced, with 1H21 EBIT/NPAT to be +76% and +86% yoy, respectively. We lift EPS forecasts by 40% in FY21 and c20% in FY22/23. We assume earnings fall from FY22, but remain well above FY19 levels. While JBH’s multiple is well above historical levels, it is well below staple peers (WES, WOW, COL). While debatable, we can argue a case for JBH now being a staple for Australian households. JBH has undoubtedly been one of the largest beneficiaries of COVID-19 – some of these trends will likely prove enduring while others will reverse. Hold rating; A$52.19 PT.