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

Summerset Group Holdings / Equity Bottom-Up

<ul><li>Well deserved bounce in valuation; but likely to be tougher from here: SUM is currently valued at a near all time high premium to RYM using our preferred valuation metric of EV/Annuity EBITDA.</li><li>1H23 sales; decent re-sales, weak new sales: SUM's 2Q23 sales numbers showed a meaningful bounce back from its very weak 1Q23. </li><li>Debt likely to build meaningfully through FY23: SUM's debt is almost exclusively project finance and we do not consider the build up of debt to be concerning, in particular given SUM's strong track record of cash recovery of capex. </li></ul>

Well deserved bounce in valuation; but likely to be tougher from here: SUM is currently valued at a near all time high premium to RYM using our preferred valuation metric of EV/Annuity EBITDA.1H23 sales; decent re-sales, weak new sales: SUM's 2Q23 sales numbers showed a meaningful bounce back from its very weak 1Q23. Debt likely to build meaningfully through FY23: SUM's debt is almost exclusively project finance and we do not consider the build up of debt to be concerning, in particular given SUM's strong track record of cash recovery of capex. 

Summerset Group: Balanced Risk Reward — Down to NEUTRAL