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.

Thematic (Sector/Industry)

<div id="m_-6258969701339594437iubdj"><ul><li>Return on capital across New Zealand's port companies has been under pressure for the past 10+ years; Port of Tauranga (POT) and Napier Port (NPH) included.</li><li>The sector as a whole is not earning anywhere near its cost of capital.</li><li>The returns diminution is exacerbated by asset revaluations for some ports, but even excluding revaluations, industry returns have declined on average. </li></ul></div>

Return on capital across New Zealand's port companies has been under pressure for the past 10+ years; Port of Tauranga (POT) and Napier Port (NPH) included.The sector as a whole is not earning anywhere near its cost of capital.The returns diminution is exacerbated by asset revaluations for some ports, but even excluding revaluations, industry returns have declined on average. 

Transport Sector  - Ports - High Tide Raises Most Ships

<ul><li>Listed transport infrastructure players are favoured over transport operators.</li><li>While the former are reliant on the latter for volumes (which are challenged across many modes currently), they have a distinct pricing power advantage.</li><li>Port pricing is supported by: (1) captive markets, and (2) a need to lift industry returns, which are currently below cost of capital across most listed and non-listed ports. </li></ul>

Listed transport infrastructure players are favoured over transport operators.While the former are reliant on the latter for volumes (which are challenged across many modes currently), they have a distinct pricing power advantage.Port pricing is supported by: (1) captive markets, and (2) a need to lift industry returns, which are currently below cost of capital across most listed and non-listed ports. 

Transport Trends -  The Haves and Have Nots

Equity Bottom-Up

<ul><li>Napier Port (NPH) reported a strong FY24 result, boosted by the post-Cyclone Gabrielle volume recovery and pricing initiatives.</li><li>Management appears confident that earnings growth can continue in FY25, despite the closure of key customer WPI and resultant loss of significant container volume.</li><li>Pan Pac’s recovery, a solid apple harvest, robust log exports, and further pricing initiatives should be supportive. </li></ul>

Napier Port (NPH) reported a strong FY24 result, boosted by the post-Cyclone Gabrielle volume recovery and pricing initiatives.Management appears confident that earnings growth can continue in FY25, despite the closure of key customer WPI and resultant loss of significant container volume.Pan Pac’s recovery, a solid apple harvest, robust log exports, and further pricing initiatives should be supportive. 

<ul><li>Domestic transport, be it freight or passenger, is currently feeling pretty sorry for itself.</li><li>The depressed economic backdrop at home and stalled recovery of inbound air travel is weighing on the sector’s psyche and financial performance.</li><li>At this stage of the cycle, we tender to look for anything vaguely resembling a green shoot. </li></ul>

Domestic transport, be it freight or passenger, is currently feeling pretty sorry for itself.The depressed economic backdrop at home and stalled recovery of inbound air travel is weighing on the sector’s psyche and financial performance.At this stage of the cycle, we tender to look for anything vaguely resembling a green shoot. 

Transport Trends - Green Shoots Yet to Germinate

<ul><li>One of Napier Port's (NPH) largest customers is shutting down permanently, which will result in a headwind to FY25 earnings growth.</li><li>Winstone Pulp International (WPI) announced a temporary closure of its timber mills last month, and following employee consultation, a final decision to close permanently has been made.</li><li>NPH has suggested that WPI currently contributes EBITDA of around ~NZ$4m, largely reflecting pulp and timber exports that are containerised at its Port Pack facility. </li></ul>

One of Napier Port's (NPH) largest customers is shutting down permanently, which will result in a headwind to FY25 earnings growth.Winstone Pulp International (WPI) announced a temporary closure of its timber mills last month, and following employee consultation, a final decision to close permanently has been made.NPH has suggested that WPI currently contributes EBITDA of around ~NZ$4m, largely reflecting pulp and timber exports that are containerised at its Port Pack facility. 

New Zealand

Napier Port Holdings Limited provides shipping services. The Company offers transportation for cargo and passenger. Napier Port Holdings serves customers in New Zealand.

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

Napier Port (NPH NZ)

Transport Sector - Ports - High Tide Raises Most Ships

Return on capital across New Zealand's port companies has been under pressure for the past 10+ years; Port of Tauranga (POT) and Napier Port (NPH)...

Forsyth Barr

Transport Trends - The Haves and Have Nots

Port pricing is supported by: (1) captive markets, and (2) a need to lift industry returns, which are currently below cost of capital across most...

Forsyth Barr

Napier Port - FY24 — Dividends Ahoy!

Napier Port (NPH) reported a strong FY24 result, boosted by the post-Cyclone Gabrielle volume recovery and pricing initiatives. Management appears...

Forsyth Barr

Transport Trends - Green Shoots Yet to Germinate

The depressed economic backdrop at home and stalled recovery of inbound air travel is weighing on the sector’s psyche and financial performance.

Forsyth Barr

Napier Port - WPI Closure Hurts

One of Napier Port's (NPH) largest customers is shutting down permanently, which will result in a headwind to FY25 earnings growth.

Forsyth Barr

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)