from MB,Key points HVN reported record 1H21 group PBT +113.5%...

from MB,

Key points
 HVN reported record 1H21 group PBT +113.5% on pcp, driven by strength
in Aus Franchisees (+210% on pcp) which is now ~60% of the business.
 NZ was a surprise in the Offshore segment, +55.3% on pcp, with strong
sales momentum continuing into 2H21. Rest of Offshore still uncertain.
 Strong housing turnover, major renovations and high household savings
rate should drive further growth for HVN in CY21. Retain OP.
Event
• HVN reported a record 1H21 result, well ahead of market expectations.
Impact
• Australian Franchisee earnings more than triple to $384m and PBT
margins also reached a record 10.2%,
Earnings and target price revision
• We revise our earnings forecasts for FY21/22/23 by +10.6%/+3.6%/+2.8%
************ MB rated as the top grade with TP=$6