We spoke to management yesterday following their FY21 results. On first read it looked a solid / inline result with revenue and EBIT hitting estimates. A few things to note – guidance for flat revenue was as expected, though they used the assumption of 75c for the AUD. On current levels, that’s about a 6% downgrade. The order book needs some work (FY23 and beyond), however they are in a good position to win contracts this half plus they have a solid balance sheet. They are looking to offload a stake in a Chinese JV, I suspect this will be a catalyst for the stock.
MM remain positive ASB despite the market reaction to their result
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