ASB gives us much to be positive about (a record order book, strong demand and visibility, expanded capacity, growing margins, and a large US$ exposure), which we have taken into account in a review that incorporates the new segment reporting structure. While the order book underpins revenue forecasts, the pace of the margin turnaround is less certain. If faster than we pencil in there is EBIT forecast upside. Our blended valuation climbs to $2.80 (prior $2.55), although a HOLD call remains appropriate on valuation grounds.
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