Current Status: HOLD

 
 

Notes:

  • 24 February 2022:

    • First half 2023 results:

      • EPS: NZ$0.003 (down from NZ$0.074 in 1H 2022).

      • Revenue: NZ$287.8m (up 137% from 1H 2022).

      • Net income: NZ$4.80m (down 96% from 1H 2022).

      • Profit margin: 1.7% (down from 89% in 1H 2022).

      • Revenue is forecast to grow 17% p.a. on average during the next 3 years, compared to a 4.0% growth forecast for the Infrastructure industry in Oceania.

      • Over the last 3 years on average, earnings per share has fallen by 20% per year but the company’s share price has increased by 2% per year, which means it is well ahead of earnings.

  • 19 October 2022

    • Auckland Airport revised earnings guidance for the financial year 2023. The company announced it has revised guidance for the 2023 financial year following a stronger than expected rebound in the aviation market, with high aircraft load factors and continued strength in forward international seat capacity expected to fuel the ongoing recovery. Reflecting this, guidance of underlying profit after tax of between $100 million and $130 million is now being provided for the 2023 financial year, an uplift on guidance provided in August of between $50 million and $100 million.

  • Full year 2022 results:

    • EPS: NZ$0.13 (down from NZ$0.32 in FY 2021).

    • Revenue: NZ$291.4m (up 8.6% from FY 2021).

    • Net income: NZ$191.6m (down 59% from FY 2021).

    • Profit margin: 66% (down from 174% in FY 2021).

    • Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 100%.

    • Over the next year, revenue is forecast to grow 94%, compared to a 25% growth forecast for the Infrastructure industry in Australia.

OVERVIEW:

  • Exchange: ASX

  • Ticker: AIA

  • Sector: Transportation

COMPANY DESCRIPTION:

Auckland Airport is the third busiest international airport in Australasia. More than three-quarters of all international visitors to New Zealand arrive here, with 20.5 million passengers having travelled through our terminals in the past 12 months. We play a significant role in supporting New Zealand businesses, with around $15 billion worth of freight passing through the airport every year. Around 15,000 people, across more than 100 businesses, work in and around us. The wider airport precinct features a world-class business park, commercial office buildings, transport and logistics warehouses, hotels and leisure and recreation facilities.

FINANCIAL OVERVIEW:

  • Market Cap - $9.784 billion

  • P/E Ratio - 22.76

  • Dividend Yield - 0%

  • Return-On-Equity (5 year avg %) - 3.99%

  • Interest Coverage - 1.87

  • Year Net Income Growth Rate (5 year avg %) - 34.54%

  • Earnings Per Share (5 year avg %) - 27.54%

  • Current Ratio - 0.39

  • Revenue Growth Rate (5 year avg %) - -10.00%

RECOMMENDATION:

  • Buy Range - $6.43 - $7.40

  • Profit Target - $10.06 (approx 49.59% ROI)

  • Stop Loss - $5.48

  • Risk:Reward - 1:4.1

CHART: