Latest / Best of Business / Shane Solly: Harbour Asset Management spokesperson on A2 Milk's share price surging

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Shane Solly: Harbour Asset Management spokesperson on A2 Milk's share price surging · Best of Business

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  Speaker 2: Ryan Bridge nineteen after six News Talk SEB chained solies
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  Speaker 2: with that Harbor Asset Management, Shane Good Evening, Get a
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  Speaker 2: Ryan Great to have you on, Hey good day for
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  Speaker 2: a two, their share price was it almost twenty percent today?
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  Speaker 3: Up? Yeah, that's right. It was a real ripper, and
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  Speaker 3: it's about it's been a tough run for a two.
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  Speaker 3: They've probabsly been battling a really modest Chinese and they're
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  Speaker 3: keeping is in for formula being sold into China. They
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  Speaker 3: beat expectations pretty handling more than ten percent above expectations,
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  Speaker 3: really driven by better revenue margin, and they're upgraded for
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  Speaker 3: next year as well, and they've talked about a dividend,
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  Speaker 3: So you're really about them doing their thing picking up
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  Speaker 3: share in the Chinese info formula market as Chinese birth
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  Speaker 3: rates still yet to show a recovery, and they talked
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  Speaker 3: about being on track to be making two billion dollars
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  Speaker 3: by twenty twenty six with their new product launches and
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  Speaker 3: supply chain improvement. So yeah, market got pretty excited about
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  Speaker 3: just under twenty percent.
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  Speaker 2: Mixed results from the electricity generators. Is this the you know,
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  Speaker 2: the price fights and the wholesale rates, the impact of
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  Speaker 2: dry weather.
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  Speaker 3: Yeah, look, you've know today was very much about both
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  Speaker 3: Manowa and Contact Energy came out with some of little
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  Speaker 3: below expectations that was about this dry weather and impact
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  Speaker 3: on generation. And so we have seen both companies come
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  Speaker 3: out with yes, guidance. For Contact they were saying financial
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  Speaker 3: year twenty k twenty six, we're going to be a
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  Speaker 3: little bit sort of more cautious, so maybe a bit
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  Speaker 3: of conservatism, but certainly that dry weather we've been seeing
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  Speaker 3: coming back to buy.
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  Speaker 2: Share prices for I mean, this is the problem, isn't
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  Speaker 2: it If your company, if your business is exposed to
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  Speaker 2: the New Zealand economy, you know you have been in
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  Speaker 2: a bit of trouble.
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  Speaker 3: Yeah, it has been tough, but we're actually seeing a
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  Speaker 3: number of companies starting to talk about green shoots. We
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  Speaker 3: saw this last week with Vulcan Steel went today we've
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  Speaker 3: had Freightways come out with a similar comment that you know,
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  Speaker 3: while things have been tough, they're seeing things get less tough.
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  Speaker 3: We're seeing a bet of buying for companies that are
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  Speaker 3: exposed to New Zeon economy, things like Spark, MW zealand
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  Speaker 3: the Telco Telecom Newzeon Fletcher Building seeing a bit of
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  Speaker 3: a recovery. Some of it's about as these better numbers
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  Speaker 3: coming from companies recently freightways were vulcan, but also anticipating
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  Speaker 3: the Reserve Bank statement this Wednesday where the markets expecting
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  Speaker 3: another rate cut. We've seen this before, Ryan back in
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  Speaker 3: twenty eight twenty nineteen. Takes New zeal Mark a little
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  Speaker 3: bit of time to respond to rate cuts. You know
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  Speaker 3: first that we had to roll this period of slow
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  Speaker 3: economic activity before the lower rates kicking and we're seeing
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  Speaker 3: that now, so we might be seeing the green shoots
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  Speaker 3: coming through. They still need to grow a bit to
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  Speaker 3: really support company returns, but we're seeing a lot more
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  Speaker 3: interests back in New Zeon companies. They're still in the
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  Speaker 3: shear market.
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  Speaker 2: The share price for several Aussie banks that are listed
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  Speaker 2: here on our stock exchange for a week today, what's
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  Speaker 2: behind that.
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  Speaker 3: Yeah, Look, we saw Jewell list am Z and whispact
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  Speaker 3: this year. Prices is a bit weaker today. So they're
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  Speaker 3: listening to the New Zl market and the Australian market.
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  Speaker 3: And what we saw was WISPEC released a quarterly update.
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  Speaker 3: There was weaker than expected. Really comes back to the
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  Speaker 3: profit guidance for this first quarter is not enough to
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  Speaker 3: meet expectations. A couple of things behind that hard to
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  Speaker 3: believe for some, but their need interest margins were lower
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  Speaker 3: than expected, so they're not making as much on their
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  Speaker 3: lending as they previously did and their revenue run rate
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  Speaker 3: so the rate of new mortgages and so forth to
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  Speaker 3: writing not quite heady expectations. There. Only good news really
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  Speaker 3: was cost coming in about LOLO so yep that dragged
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  Speaker 3: the banks down and dragged down am Z and whispect.
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  Speaker 3: They are listed on the new ZL market.
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  Speaker 2: Shane, thank you so much for that. Great to have
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  Speaker 2: you on as always that is Shane solely Harbor Asset
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  Speaker 2: Management with your market update for the seed.
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