Analyst Note| Mark Taylor |
Our AUD 5.50 fair value estimate for no-moat ALS Limited is unchanged. The materials testing specialist reported a 1.5% decline in underlying fiscal 2021 net profit after tax to AUD 186 million, marginally ahead of our AUD 178 million expectations. We make no material changes to our outlook, including for a 12% increase in underlying fiscal 2022 NPAT to AUD 209 million. ALS paid a higher-than-anticipated fiscal second-half dividend of AUD 14.6 cents against our AUD 12.5 cents target. It brings the full fiscal year to AUD 23.1 cents for a modest 1.9% yield at the current AUD 12.30 share price, franked to 81%. Our fiscal 2022 DPS forecast is little changed at AUD 26 cents, a prospective partially franked yield of 2.1%, again modest.