Infratil flies on the back of investment portfolio
After losing the market's interest in the early part of the year, Infratil has come back with a vengeance, the shares rising almost 30% since March.
The rise has been propelled by mostly good news across Infratil's investment portfolio.
The most recent booster was a 136% increase in reported profit to $29.6 mill for the six months to March, with earnings from 35.2% owned Trustpower up 19% from last year.
Glasgow Prestwick Airport, of which Infratil owns 100%, made a bigger contribution to earnings than expected, and while the amount of freight shifted through the airport continued to fall, there are signs this may have reached a plateau
However, there is another problem of declining passenger numbers starting to creep in and Infratil will have its work cut out generating a recovery.
Infratil has benefited from a "measured disposal" of Port of Tauranga shares, which have climbed steadily higher this year.
The joker in the pack though is the possibility Infratil will back a "second Auckland airport" at Whenuapai, but the government has yet to decide on the proposal.
Even if it gets the green light, Infratil will face significant hurdles, including resource consenting.
Analysts like what they see in this company and are predicting a heavy full year profit for the full year.
First NZ Capital said in a research note it estimated Infratil's net asset value at $3.85 a share, implying the stock is trading at a discount of around 17%.
Comments from our readers
No comments yet
Add your comment:
NZ meat cleared to move from across Chinese wharves
NZ dollar falls to 8-month low
Xero posts $14.4 mln FY loss, doubles revenue and paying customers
Veolia Transport, Auckland rail operator, almost doubles FY profit after inking new contract
F and P Healthcare shares jump to highest in more than 2 years on profit outlook
James Hardie makes no provision on NZ Education Ministry's leaky school claim
Bathurst gets nod for DoC access to Denniston mine
No savings this year for Rakon's manufacturing shift to China, grand plan coming in July
Fronde mulls capital raising for Australian push as FY profit more than doubles
GPG pension headache puts brake on wind-down plan