Coles Group (ASX:COL)
COL's 1H23 EBIT was above our forecast but was driven by lower-than-expected D&A. At the EBTDA level, the result was broadly in line with our expectation.
We make minimal changes to FY23-25F group underlying EBIT with upgrades to Supermarkets offset by downgrades to Liquor and the removal of Express.
We maintain our Add rating.
Seek Limited (ASX:SEK)
It was broadly a positive result, in our view, however job ad volume growth moderating in 2H23 (particularly ANZ), whilst not unexpected, looks to be a factor in guidance being set at the lower end of previously flagged ranges.
We adjust our FY23F-FY25F EPS by -5%-+1% factoring in the revised guidance, lower topline estimates across our forecast period on additional conservatism and improved EBITDA margins in SEEK Asia. Add maintained.
HUB24 Ltd (ASX:HUB)
HUB reported above expectations.
HUB looks to be delivering 'cleaner' financials; the product offering is industry leading (along with NWL); and the runway to secure more clients looks intact. Whilst upside to our valuation is reasonably low, the potential for larger 'transitions' wins is a realistic catalyst within CY23. Add maintained.
Monash IVF Group Ltd (ASX:MVH)
MVF posted a solid 1H23 result of underlying NPAT of A$12.6m which was slightly ahead of guidance. Despite industry volumes declining in the half, MVF continues to gain market share in its key markets through both organic growth and through acquisitions.
We have made minor changes to our forecasts, adjusting our cost base down slightly. We maintain our Add recommendation.
Peter Warren (ASX:PWR)
PWR's 1H23 result was broadly in-line, however showed the impact of higher opex flowing through.
PWR is trading on ~11x our assumed more 'normalised' conditions (FY24/25). Industry consolidation will continue - we expect PWR to be a participant which adds to structural earnings capacity. Adding Toyota is a potential s-term catalyst.
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