New Zealand Professional Investment Services Firm

Forsyth Barr

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.

New Zealand Professional Investment Services Firm, Forsyth Barr

Equity Bottom-Up

Hallenstein Glassons Holdings / Equity Bottom-Up

<ul><li>Hallenstein Glassons' (HLG) 1H25 trading update highlighted strong sales, +8% to NZ$240m, but disappointing first-time 1H25 NPAT guidance of NZ$21.0m to NZ$21.3m.</li><li>Sales growth was in line with our estimates, but NPAT guidance was c.-NZ$5m below due to: (1) gross margin pressure in NZ as promotional activity increased over Black Friday, Christmas and Boxing Day, and (2) higher operating costs in Glassons Australia as the business grows its footprint.</li><li>While the NZ operating backdrop remains challenging, HLG is demonstrating strong sales and earnings momentum in Glassons Australia, which has meaningful run-way for further growth. We continue to view the risk/reward as positive, trading on a two-year forward PE of c.11x (slightly below history at c.12x), and paying a FY26 cash yield of c.7.5%. OUTPERFORM.</li></ul>

Hallenstein Glassons' (HLG) 1H25 trading update highlighted strong sales, +8% to NZ$240m, but disappointing first-time 1H25 NPAT guidance of NZ$21.0m to NZ$21.3m.Sales growth was in line with our estimates, but NPAT guidance was c.-NZ$5m below due to: (1) gross margin pressure in NZ as promotional activity increased over Black Friday, Christmas and Boxing Day, and (2) higher operating costs in Glassons Australia as the business grows its footprint.While the NZ operating backdrop remains challenging, HLG is demonstrating strong sales and earnings momentum in Glassons Australia, which has meaningful run-way for further growth. We continue to view the risk/reward as positive, trading on a two-year forward PE of c.11x (slightly below history at c.12x), and paying a FY26 cash yield of c.7.5%. OUTPERFORM.

Hallenstein Glasson - Festive Discounting