AMC

Over reporting season we will typically write a “flash” note, summarising the essentials. Then, we will write a follow up, highlighting some of the detail that we think is important or relevant.

Whilst the result was not very exciting, it was very dependable.

Excellent FCF generation…

Image

Strong segmental performance, where the pricing power in the much larger flexible’s segment was essential to the maintenance of margin…

Image

Which is well demonstrated here. Cost recovery in rigid will take some additional time, but overall we think it a robust outcome in the face of kinked supply chains and high raw material costs.

The embedded earnings expectations appear quite manageable, to our mind.

Image

AMC is a solid QGARP company, and at a headline PE of ~15-16x, and a strong economy in front of it, we remain happy holders.

Important Information: This document has been prepared by Aequitas Investment Partners ABN 92 644 165 266 (“Aequitas”, “our”, “we”), a Corporate Authorised Representative (no. 1284389) of C2 Financial Services, (Australian Financial Services Licensee no. 502171), and is for distribution within Australia to wholesale clients and financial advisers only.

This document is based on information available at the time of publishing, information which we believe is correct and any opinions, conclusions or forecasts are reasonably held or made as at the time of its compilation, but no warranty is made as to its accuracy, reliability or completeness. To the extent permitted by law, neither Aequitas nor any of its affiliates accept liability to any person for loss or damage arising from the use of the information herein.

Please note that past performance is not a reliable indicator of future performance.

General Advice Warning: This document has been prepared without taking into account your objectives, financial situation or needs, and therefore you should consider its appropriateness, having regard to your objectives, financial situation and needs. Before making any decision about whether to acquire a financial product, you should obtain and read the relevant Product Disclosure Statement (PDS) or Investor Directed Portfolio Service Guide (IDPS Guide) and consider talking to a financial adviser.

Taxation warning: Any taxation considerations are general and based on present taxation laws and may be subject to change. Aequitas is not a registered tax (financial) adviser under the Tax Agent Services Act 2009 and investors should seek tax advice from a registered tax agent or a registered tax (financial) adviser if they intend to rely on this information to satisfy the liabilities or obligations or claim entitlements that arise, or could arise, under a taxation law.