SUPPLY NETWORK LIMITED (SNL)
Share Price Analysis and Chart

03/03/2025

2

Downgrade to Accumulate from Buy

$36.30

-3.28%

Supply Network's 1H25 result confirmed the company is gaining market share, with 17.8% y/y sales growth well above competitors Maxiparts ((MXI)) and Bapcor ((BAP)) who reported 4% and 0.8% respectively.

Operating margin rose 150bps y/y and operating cash flow was strong, resulting in a fall in gearing to 6.1% from 9.3% in June. The broker notes the company expects to achieve $350m in sales in FY25 vs $171.2m in 1H, one year ahead of its three-year plan.

Target price rises to $36.3 from $33.0. Rating downgraded to Accumulate from Buy following share price gains.

FORECAST
Ord Minnett forecasts a full year FY25 dividend of 70.50 cents and EPS of 96.10 cents.
Ord Minnett forecasts a full year FY26 dividend of 79.00 cents and EPS of 111.80 cents.

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06/03/2025

1

Buy

$39.10

4.18%

No headline surprises from Supply Network's 1H25 result as it was pre-reported, Moelis notes, so the highlight was the company commencing work on its 3-year plan one year early to increase revenue to $450m by FY28.

The company now expects to achieve $350m revenue in FY25 (previously FY26).

The broker believes higher gross profit margins achieved in 1H will be sustainable, with upside risk from improved sourcing which it has not factored beyond FY25.

In the 2H, however, the broker expects small margin compression vs 1H due to higher operating expenses to support growth. 

Target price lifts to $39.10 (was $30.50 in September). Buy retained.

FORECAST
Moelis forecasts a full year FY25 dividend of 65.90 cents and EPS of 94.00 cents.
Moelis forecasts a full year FY26 dividend of 74.50 cents and EPS of 106.40 cents.