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>Solid result despite falling volumes: STU reported a 1H23 normalised EBIT down -5% to NZ$21.5m</li><li>Focussing in on the balance sheet: STU have renewed its focus on its balance sheet</li><li>Navigating a softer demand outlook: Higher interest rates and a tight labour market is moderating activity across most sectors</li></ul>

Solid result despite falling volumes: STU reported a 1H23 normalised EBIT down -5% to NZ$21.5mFocussing in on the balance sheet: STU have renewed its focus on its balance sheetNavigating a softer demand outlook: Higher interest rates and a tight labour market is moderating activity across most sectors

Steel & Tube Holdings: 1H23 Result — Reinforcing Margins

<ul><li>Steel and Tube (STU) reported 1H23 normalised EBIT of NZ$21.5m broadly in line with our expectations.</li><li>STU have been focused on strengthening their balance sheet with net debt -NZ$10m largely due to a decline in inventory by -NZ$18m.</li><li>STU provided no FY23 guidance but do expect steel demand to moderate as challenging macro trends continue, with activity already easing in the residential division</li></ul>

Steel and Tube (STU) reported 1H23 normalised EBIT of NZ$21.5m broadly in line with our expectations.STU have been focused on strengthening their balance sheet with net debt -NZ$10m largely due to a decline in inventory by -NZ$18m.STU provided no FY23 guidance but do expect steel demand to moderate as challenging macro trends continue, with activity already easing in the residential division

Steel and Tube: 1H23 Result – Initial Thoughts

Thematic (Sector/Industry)

<ul><li>New Zealand: Residential consents off slightly; Inventory continues to grow; Auckland house sales softer than in lockdown; Residential construction intentions at a new low, commercial bounces back</li><li>Australia: Aussie house prices keep marching down; Residential approvals bounce</li><li>International: China - Total building starts tick up; property woes trigger decline in global cement output</li></ul>

New Zealand: Residential consents off slightly; Inventory continues to grow; Auckland house sales softer than in lockdown; Residential construction intentions at a new low, commercial bounces backAustralia: Aussie house prices keep marching down; Residential approvals bounceInternational: China - Total building starts tick up; property woes trigger decline in global cement output

<ul><li>New Zealand: Resi slowdown drags down construction forecasts</li><li>Australia: Australian outlook comments robust despite softening residential</li><li>International: Millions of empty flats threatens to plunge China’s troubled property market further into crisis</li></ul>

New Zealand: Resi slowdown drags down construction forecastsAustralia: Australian outlook comments robust despite softening residentialInternational: Millions of empty flats threatens to plunge China’s troubled property market further into crisis

<ul><li>Strong result driven by margin expansion: STU reported a strong FY22 result in line with our expectations, with a normalised EBIT of $48m</li><li>Growth ambitions continue to rise: While restructuring has lowered STU's cost base it continues to invest in improving customer service levels through value-add activities such as processing</li><li>Activity remains robust, eyes on the steel price: While no FY23 guidance was provided, STU has visibility on a solid pipeline of work until February</li></ul>

Strong result driven by margin expansion: STU reported a strong FY22 result in line with our expectations, with a normalised EBIT of $48mGrowth ambitions continue to rise: While restructuring has lowered STU's cost base it continues to invest in improving customer service levels through value-add activities such as processingActivity remains robust, eyes on the steel price: While no FY23 guidance was provided, STU has visibility on a solid pipeline of work until February

Steel & Tube Holdings: FY22 Result — Forging Ahead

New Zealand

Steel & Tube Holdings Limited produces and distributes steel throughout New Zealand and its products include steel fasteners, nuts, bolts and screws.  The Company's other activities include steel reinforcing.

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

Steel & Tube Holdings (STU NZ)

Steel & Tube Holdings: 1H23 Result — Reinforcing Margins

Steel and Tube (STU) reported a tidy 1H23 result which was in line with our expectations; STU expects demand for steel will continue to moderate...

Forsyth Barr

Steel and Tube: 1H23 Result – Initial Thoughts

Steel and Tube (STU) reported 1H23 normalised EBIT of NZ$21.5m broadly in line with our expectations and have been focused on strengthening their...

Forsyth Barr

Building Weekly (05-Oct-2022)

New Zealand: Residential consents off slightly; Inventory continues to grow; Auckland house sales softer than in lockdown; Residential construction...

Forsyth Barr

Building Weekly (26-Aug-2022)

Construction spending forecast to fall -18% to NZ$42bn by 2027, primarily driven by forecast resi construction down -36% (c.-NZ$11bn) while non...

Forsyth Barr

Steel & Tube Holdings: FY22 Result — Forging Ahead

Steel and Tube reported a strong FY22 result, benefitting from higher volumes and improved gross margins; there was some margin normalisation in...

Forsyth Barr

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)