Precinct Properties New Zealand Limited

Section 1: Company Overview and Fundamentals

1.1 Company Overview:

Precinct Properties New Zealand Limited (NZX: PCT) is the largest owner as well as developer of premium inner-city business space in Auckland and Wellington. The company owns Generator NZ, New Zealand’s premier flexible office space provider.

1.2 The Key Positives, Negatives, Investment Highlights and Risks

1.3 Top 10 Shareholders: The top 10 shareholders have been highlighted in the chart, which together forms ~38.57% of the total shareholding.

1.4 Key Metrics:

The company has posted a decent uptick in EBITDA margin to reach 58.4% in 1HFY22 from 55.2% in 1HFY21. Notably, the company’s debt to equity ratio also improved to 0.48x in 1HFY22 from 0.58x in 1HFY21, depicting reasonable leverage position of the company.

Section 2: Business Updates and Financial Highlights

2.1 Recent Updates:

2.2 Insights of 1HFY22:

Section 3: Key Risks and Outlook:

Section 4: Stock Recommendation Summary:

4.1 Price Performance and Technical Summary:

4.2 Fundamental Valuation

Valuation Methodology: P/E Multiple Based Relative Valuation (Illustrative)

Markets are trading in a highly volatile zone currently due to certain macro-economic issues and geopolitical tensions prevailing. Therefore, it is prudent to follow a cautious approach while investing.

Note 1: The reference data in this report has been partly sourced from REFINITIV.

Note 2: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation has been achieved and is subject to the factors discussed above.

Technical Indicators Defined: -

Support: A level at which the stock prices tend to find support if they are falling, and downtrend may take a pause backed by demand or buying interest.

Resistance: A level at which the stock prices tend to find resistance when they are rising, and uptrend may take a pause due to profit booking or selling interest.

Stop-loss: In general, it is a level to protect further losses in case of any unfavourable movement in the stock prices.

Disclaimer

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