ArborGen Holdings (NZX: ARB)

Currency in NZD

Last close As at 04/02/2023

NZD0.22

0.02 (10.00%)

Market capitalisation

NZD111m

ArborGen Holdings is an New Zealand-listed investment company and is the world’s largest integrated developer, commercial manufacturer and supplier of advanced forestry seedlings with operations in the United States and Brazil.

Prior to the COVID-19 outbreak, the economic growth outlook in each of its core countries, the United States and Brazil, was either good or improving, according to OECD data. At this point the primary end-markets served by its plantation forestry customer base were in a positive cyclical phase.

Sector

Industrials

Equity Analyst

Kenneth Mestemacher

Kenneth Mestemacher

Director, TMT

Key Management

  • Alex Brown

    CFO

  • Andrew Baum

    CEO

  • Sharon Ludher-Chandra

    Business Development Executive

Balance Sheet

Forecast net debt (US$m)

N/A

Forecast gearing ratio (%)

N/A

Share Price Performance

Price Performance
% 1M 3M 12M
Actual (13.0) 0.0 (16.7)
Relative (16.3) (9.4) (11.3)
52 week high/low 0.3/0.2

Financials

Reflecting ArborGen Holdings’ (ARB’s) strategic shift to focus on Brazil and the United States, the company reported mixed H123 results: growth from Brazil boosted overall revenues by 61% over the prior comparable period, although US challenges and a higher amortisation charge led normalised operating earnings to fall US$1.2m y-o-y to a loss of US$0.6m. ARB made investments in Brazilian and US nurseries, adding capacity for about 38m seedlings. While H223 could be affected by ongoing inflationary pressures and US yields, ARB’s long-term prospects appear solid, benefiting from recent record Mass Control Pollinated (MCP) cone harvests, capacity expansion and the potential for margin recovery from future price increases and a favourable mix shift. We are reviewing our estimates.

Y/E Mar Revenue (US$m) EBITDA (US$m) PBT (US$m) EPS (fd) (c) P/E (x) P/CF (x)
2021A 42.8 7.4 (1.0) (0.1) N/A 8.6
2022A 47.6 10.1 1.0 1.1 12.7 6.5
2023E N/A N/A N/A N/A N/A N/A
2024E N/A N/A N/A N/A N/A N/A

Thematics

Concept of energy storage unit consisting of multiple conected containers with batteries. 3d rednering.

Industrials

Battery energy storage

Consumer

IPO apocalypse

TMT

ESG, moving beyond the box tick

Industrials

The emergence of mega-constellations

Subscribe to Edison

Get access to the very latest content matched to your personal investment style.

Sign up for free