Something of a pathetic market response imho. They've basically shrugged off the absence of JobKeeper and the additional costs from the last half and look like delivering a cracker of a second half.
If SDI had a currency tailwind in this half (not sure it would have been substantial) I would expect it's still strengthening into FY23. My concern is more that the record sales might (still) include an element of demand catch up from the post-COVID re-opening (although I note the comments in this announcement about market share growth).
However if this is something of a new normal in sales and this result is indicative of how they've been able to update their prices to reflect additional freight cost (my interpretation was they copped some one offs in the previous half) one might reasonably consider what the starting point forecast NPAT might be for FY23 absent those one off costs encountered in H122.
Quite conceivable we may be looking at a forward FY23 PE approaching 10 at current market cap?
SDI Price at posting:
81.0¢ Sentiment: Buy Disclosure: Held
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