JB Hi-Fi Reduced EPS estimates (UBSe below VA) and long crowded position; downgrade to Neutral

研报英文原文证据摘录

JB Hi-Fi Reduced EPS estimates (UBSe below VA) and long crowded position; downgrade to Neutral

Cons.

& margin expansion due to risk of greater competition). Looking forward, post the

06/26E 4.42 4.37 -1 4.49

WES Strategy Briefing Day, we also suggest that the competitive intensity from

06/27E 4.57 4.43 -3 4.58

Officeworks could increase on a more enduring basis as it seeks to improve its

06/28E 5.05 4.82 -5 4.85

technology offer (service, capability [knowledge, selling], range), noting significant work

is required given current offer. Shaun Cousins

Analyst

JBH well positioned in UBS high multiple scorecard, but risks are rising shaun.cousins@ubs.com

+61-2-9324 3844

The UBS framework for a high multiple retailer is: (1) TAM that is large, growing and

expandable; (2) market share gains; (3) robust cost management (COGS, CODB); and (4) James Meares

strong cash & capital position to fund further investment. JBH remains well positioned Analyst

james.meares@ubs.com

across this criteria, with technology advancements expanding the TAM and a strong

+61-29-324 3575

cash & capital position, while the JBH sales mix (telco & computers in JB Aust,

replacement in TGG) provides resilience to a more challenged backdrop for consumer Zack Pontey

discretionary companies. But the prospect of sustained market share gains could be Associate Analyst

zack.pontey@ubs.com

under threat from Officeworks, especially if it is successful with its improved technology

+61-2-9324 2475

offer and Officeworks Tech trial (first into shopping centres, where JB Aust is strong),

with this also possibly slowing JBH cost management (e.g. lower gross margins).

Valuation: Reduced to A$83/share, down from A$85 in 12 mths' time

We lower our blended (DCF, SOTP) valuation due to reduced earnings (FY27E EV/EBIT