Fisher & Paykel Reports In-Line Full-Year Result

We still see the risk-reward proposition as skewed to the downside for Fisher & Paykel, with shares trading at a 20% premium to our unchanged NZD 11.00 (AUD 10.00) fair value estimate. Fisher & Paykel's fiscal 2018 net profit after tax, or NPAT, of NZD 190 million was broadly in line with our NZD 188 million estimate. The 4% miss on the revenue line was largely offset by solid EBIT margin improvement to 27.5% for the year, up from 26.8% a year ago and beating our 26.3% forecast, aided further by a lower-than-expected net interest charge.