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Forsyth Barr MST Access Research

Forsyth Barr MST Access Research delivers institutional quality research to investors and fund managers on small and microcap companies, leveraging intelligence and insight from the capabilities of both Forsyth Barr and MST Access. The research provided is issuer-sponsored.

Latest report

Trade Window Holdings

The Front Line of Trade

10 JUNE 2022 BY JAMES LINDSAY

Global trade and commerce complexities cry out for modern solutions to streamline supply chains. TradeWindow's (TWL)
solutions replace time-consuming, manual, paper-based processes with secure, digital solutions. This digitalisation of trade
information is inevitable. TWL users can provide their supply chain partners, such as shipping lines, freight forwarders,
ports, terminals, government authorities, border agencies, insurance companies, and banks, with secure access to data
pertinent to their needs. Given the truly disruptive nature of the product suite, against current manual processes, clients
are seeing 70–90% cost savings upon implementation. TWL is building an interconnected ecosystem of partners and
already has 450+ customers across 30+ sectors. Our spot valuation is NZ$0.96, with upside if revenue growth eventuates
above our forecasts or via further accretive acquisition arbitrage opportunities.

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27 May 2022 | 1H22 Growth Upset by Large Events

Tower Limited's (TWR) 1H22 showed improving trends at the top line and reasonable cost control (where controllable) but again large claims expenses muddied the waters. Large events costs were NZ$17.9m in 1H22 versus NZ$9.3m in 1H21.

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27 May 2022 | FY22 Record Result Awaits New Capacity

Rakon Limited (RAK) reported its most profitable year (in its fifty year history) over FY22, with underlying EBITDA of NZ$54.4m +132%, on revenue of NZ$172m +34%.

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11 February 2022 | Shooting for the Stars

Rakon (RAK) has upgraded its FY22 underlying EBITDA earnings guidance range to NZ$49m–NZ$53m, up from its prior estimate of NZ$44m–NZ$49m. At the midpoint this is a solid +10% upgrade.

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3 February 2022 | Steady as She Goes - But Growing

Tower (TWR) held its ASM and gave an upbeat update to the market on business performance, the capital return, Tongan eruption impacts and solid underlying business growth.

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3 February 2022 | Sector and 5G Market Updated

For investors it has been a rough start to 2022. Global markets and the technology sector specifically have fallen, reacting to changes in inflation expectations and the change in the stance of several central banks.

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24 January 2022 | Hunga Tonga — Hunga Ha'apai

Tower (TWR.NZ) has updated the market, saying it is in the early stages of assessing the impact of a powerful ‘1 in 1,000 year event’ eruption near Tonga. It remains too early to properly determine or estimate the cost of repairs at this stage.

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17 December 2021 | Stars Align

Rakon (RAK) is a New Zealand headquartered technology company specialising in high-frequency control systems and timing solutions.

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25 November 2021 | FY21 Simplifying the Story

Tower (TWR) released its FY21 result which showed the impact of a challenging period of weather and COVID impacted claims.

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11 November 2021 | Reassessing Flood and Climate Change Risks

Tower (TWR) has released an important change in how it assesses flooding risk after a year of background research, analysis and extensive modelling.

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2 November 2021 | Tidying up the Pacific

Tower (TWR) has announced the purchase of an additional 22% stake in Samoan headquartered National Pacific Insurance (NPI), taking TWR's stake from 71% to 93%, costing NZ$3.4m. TWR will now move to compulsorily acquire the remaining 7% of shareholders.

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23 September 2021 | New Guidance on the Journey

Given recent weather events, constraints due to COVID-19 and inflationary pressures there was always the risk Tower (TWR) would need to re-visit its earnings guidance for the upcoming FY21 result.

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14 June 2021 | Raining on Expectations

Tower (TWR) has provided estimates of the impact of the recent Canterbury floods which has lifted its annual assumption for ‘large events’ to the maximum annual level of NZ$14.0m versus NZ$9.7m previously.

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27 May 2021 | Tower 1H21 Result

Tower (TWR) reported a disappointing 1H21 result and we have again downgraded our estimates. We remain encouraged by the strong premium growth from the Tower Direct business and continued efficiency improvements, but now expect some permanent degradation.

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18 May 2021 | Hopes for FY21 Growth Go Up in Smoke

Tower (TWR) has downgraded its FY21 guidance for underlying NPAT from >NZ$29.8m to NZ$25–27m (-13% at the midpoint) a little over a week out from its 1H21 result. We have made preliminary adjustments to our forecasts based on the limited details released.

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15 March 2021 | A Tower of Strength

We initiate coverage of Tower (TWR), a New Zealand based pure-play general insurer, focussed predominately on personal lines insurance throughout New Zealand and the Pacific Islands.

MST Access Research

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These publications are general in nature and should not be regarded as personalised investment advice. For personalised financial advice contact your Forsyth Barr Investment Adviser.