• Earnings look to have bottomed – FY4/26 saw Macbee Planet significantly impacted by adverse conditions experienced by major clients in the Finance and Wellness sectors, as well as an increase in personnel and advertising costs that resulted in negative earnings growth YoY. However, quarterly trends indicate that both a slowdown in sales declines YoY and an OPM recovery were underway from Q3 FY4/26. With challenging conditions set to continue for major clients and a focus on business investment, FY4/27 guidance still indicates a YoY earnings decline. Whilst we do not expect a V-shaped recovery, our estimates indicate earnings bottoming out in the near term, with a steady recovery trend from FY4/28. We believe the shares are poised for a re-rating.
