Margin momentum continues to exceed expectations, with Q2 margins of 4.2% and management guiding to a further jump to c4.5-5% in Q3. First time outsourcing is driving c50% of new business wins, helping offset a subdued outlook for underlying volume recovery in the near-term. Financial flexibility is in place to continue to drive these new business wins and explore bolt-on M&A. We upgrade FY21E and FY22E EBIT by 10% and 2% based on improved margin outlook and new business wins. EV remains c15% below pre-Covid levels, which fairly reflects the slow pace of recovery ahead. HOLD
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