New Zealand Professional Investment Services Firm, Forsyth Barr

Forsyth Barr

New Zealand Professional Investment Services Firm

We are proud to be a New Zealand owned firm, with 21 offices throughout the country and over 300 employees. We assist personal, institutional and corporate clients providing a full range of investment services.

Forsyth Barr is a foundation New Zealand Exchange firm (NZX) and accredited market participant. We have been confirmed by the Financial Markets Authority as a Qualifying Financial Entity (QFE).

Research is the cornerstone of our advice. We have one of New Zealand's leading teams of analysts. Our global affiliations ensure comprehensive research coverage of all major investment markets.

Equity Bottom-Up

<ul><li>Fletcher Building (FBU) has presented its side of the Pro-fit leaks story and provided a strong counter argument to BGC's claims that the issues are caused by manufacturing defect.</li><li>We found FBU's presentation to be comprehensive, highlighting the thorough and detailed investigation that it had been undertaking.</li><li>This included a significant number of product tests, some of which were directly testing key parts of BGC's thesis.</li></ul>

Fletcher Building (FBU) has presented its side of the Pro-fit leaks story and provided a strong counter argument to BGC's claims that the issues are caused by manufacturing defect.We found FBU's presentation to be comprehensive, highlighting the thorough and detailed investigation that it had been undertaking.This included a significant number of product tests, some of which were directly testing key parts of BGC's thesis.

<ul><li>Western Australian (WA) homebuilder BGC has fired the first salvo in Fletcher Building’s (FBU) Iplex Pro-fit Pipes issue.</li><li>BGC’s investigation has concluded that manufacturing issues are responsible for leaking pipes in the state and BGC believes it warrants a product recall.</li><li>FBU is in trading halt while it formulates a response. We found BGC's presentation to be credible and believe FBU should take the results seriously.</li></ul>

Western Australian (WA) homebuilder BGC has fired the first salvo in Fletcher Building’s (FBU) Iplex Pro-fit Pipes issue.BGC’s investigation has concluded that manufacturing issues are responsible for leaking pipes in the state and BGC believes it warrants a product recall.FBU is in trading halt while it formulates a response. We found BGC's presentation to be credible and believe FBU should take the results seriously.

<ul><li>Despite pre-releasing significant portions of its FY23 result, Fletcher Building (FBU) still managed to surprise the market.</li><li>The result and outlook comments were not materially different from the investor day in June, in fact margins were stronger and net debt was slightly lower.</li><li>However, the market's focus was (1) the potential for increased Iplex Australia provisions, (2) lower than expected dividend, and (3) greater than expected FY24 interest cost guidance. </li></ul>

Despite pre-releasing significant portions of its FY23 result, Fletcher Building (FBU) still managed to surprise the market.The result and outlook comments were not materially different from the investor day in June, in fact margins were stronger and net debt was slightly lower.However, the market's focus was (1) the potential for increased Iplex Australia provisions, (2) lower than expected dividend, and (3) greater than expected FY24 interest cost guidance. 

Fletcher Building - FY23 Result — No Alarms but Some Surprises

<ul><li>Fletcher Building (FBU) has announced a further NZ$105m (c.10cps post-tax) provision for its troubled New Zealand International Convention Centre (NZICC) project relating to further cost increases and insurance recoveries.</li><li>This provision will be reported as a significant item, as such we have made only minor changes to our forecasts.</li><li>FBU will report its FY23 results on Wednesday, 16 August. </li></ul>

Fletcher Building (FBU) has announced a further NZ$105m (c.10cps post-tax) provision for its troubled New Zealand International Convention Centre (NZICC) project relating to further cost increases and insurance recoveries.This provision will be reported as a significant item, as such we have made only minor changes to our forecasts.FBU will report its FY23 results on Wednesday, 16 August. 

Fletcher Building-  Provision-Ja Vu All Over Again

Thematic (Sector/Industry)

<ul><li>Residential consents stepped down further in May driven by higher-density dwellings which more than offset a small lift in detached consents.</li><li>At its June investor day, Fletcher Building (FBU) stated that based on current indicators it expected FY24 volumes will be down -8% on the prior year and -15% below 2H22 which it believes was peak market activity.</li><li>Assuming flat commercial and infrastructure activity this implies FBU expects residential to be c.-30% below 2H22.</li></ul>

Residential consents stepped down further in May driven by higher-density dwellings which more than offset a small lift in detached consents.At its June investor day, Fletcher Building (FBU) stated that based on current indicators it expected FY24 volumes will be down -8% on the prior year and -15% below 2H22 which it believes was peak market activity.Assuming flat commercial and infrastructure activity this implies FBU expects residential to be c.-30% below 2H22.

Building Sector: NZ Consents — Another Step Down

Australia

Fletcher Building Limited manufactures, distributes, and sells materials for the building industry including wood fiber-based products, cement and aggregates, plasterboard, laminates, lumber, and aluminium extrusion. The Company operates primarily in New Zealand and Australia.

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

Fletcher Building (FBU AU)

Fletcher Building - Ross Returns Serve

Fletcher Building (FBU) has presented its side of the Pro-fit leaks story and provided a strong counter argument to BGC's claims that the issues...

Forsyth Barr

Fletcher Building - Pro-Fit Leaks?

Western Australian (WA) homebuilder BGC has fired the first salvo in Fletcher Building’s (FBU) Iplex Pro-fit Pipes issue. BGC’s investigation has...

Forsyth Barr

Fletcher Building - FY23 Result — No Alarms but Some Surprises

Despite pre-releasing significant portions of its FY23 result, Fletcher Building (FBU) still managed to surprise the market. The result and...

Forsyth Barr

Fletcher Building- Provision-Ja Vu All Over Again

Fletcher Building (FBU) has announced a further NZ$105m (c.10cps post-tax) provision for its troubled New Zealand International Convention Centre...

Forsyth Barr

Building Sector: NZ Consents — Another Step Down

Residential consents stepped down further in May driven by higher-density dwellings which more than offset a small lift in detached consents; Over...

Forsyth Barr

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)