BAP +5.15%: the auto parts company reported a solid set of numbers for their 1H today, surprising the market which was fairly downbeat on expectations ahead of the release. Revenue was a record $1b, up 11% and a 5% beat to consensus, while EITDA and the dividend were marginally ahead of expectations. A strong wholesale and trade result offset weakness in retail and NZ, however, there were positive signs of progress here. The company guided to a marginal improvement in the second half vs the first, on track to beat consensus by high single digits. Shares were sold into the result on concerns margins will continue to slide, but the company was confident we have seen the low point and they should improve into year end.
MM is bullish and long BAP in the Emerging Companies Portfolio
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