FINWIRES · TerminalLIVE
FINWIRES

Nufarm's Crop Protection Portfolio Reset, Deleveraging Progress is Encouraging, Jefferies Says

By

Nufarm's (ASX:NUF) reset of its crop protection portfolio, progress in deleveraging, focus on capital allocation decisions, and improved cash flow outlook are all encouraging ahead of an upcoming investor day, Jefferies said in a Wednesday note.

In a same-day trading update, the company said leverage is forecast to decline to around 2 times from 2.7 times, supported by stronger earnings, improved cash generation, and better working capital management.

The update pointed to better seed results but was also a roughly 6% downgrade to consensus fiscal second-half earnings before interest, taxes, depreciation, and amortization, driven by weaker North American crop protection conditions, Jefferies said.

It added that Nufarm's portfolio reset should support margins by rationalizing stock-keeping units to higher-value products amid an overall stable backdrop following "a very tough period for the industry and growers."

While dry weather conditions in Europe are expected to persist into the first half of fiscal 2027, green shoots are emerging with channel inventories normalized and the Asia-Pacific region faring better, the investment firm added.

Jefferies maintained a buy rating on Nufarm with a price target of AU$3.50.

The company's shares gained 2% in recent Thursday trade.

What else is happening in Asia?

Asia

Shenzhen Megmeet Electrical Buys Out 46.3% Stake in Subsidiary

Shenzhen Megmeet Electrical (SHE:002851) will purchase the remaining 46.3% stake it does not own in subsidiary Shenzhen Megmeet Welding Technology for 663.6 million yuan, according to a Wednesday filing with the Shenzhen bourse.Following the sale of the stakes of 46 shareholders, the listed company will fully own the subsidiary.

SHE:002851
Asia

Zhejiang Wanliyang Appoints CFO

Zhejiang Wanliyang (SHE:002434) appointed Shi Yuqiong as chief financial officer after Zhang Leigang resigned from the top financial role due to a change in work responsibilities, according to a Shenzhen bourse filing on Wednesday.Shi's appointment came into effect on Tuesday. The term runs through the end of the current board's tenure.Qian Shouguang was also appointed head of the internal audit department after the previous department head resigned, the filing said.Shares of the Chinese auto transmission systems manufacturer fell over 2% in recent trade.

SHE:002434
Asia

Carimin Petroleum Raises Stake in Sealink International to 25.3%

Carimin Petroleum (KLSE:CARIMIN) acquired a 5.8% stake in Sealink International (KLSE:SEALINK) for 9.9 million ringgit in cash, according to a Tuesday filing with Bursa Malaysia.The acquisition involved 29.1 million shares bought at 0.34 ringgit each, between Sept. 18 and Sept. 22.Following the acquisition, Carimin's stake in Sealink rose to 25.3% from 19.5%, making Sealink an associate company.Carimin Petroleum said the acquisition was part of its ongoing investment strategy.The deal was funded through internally generated funds and does not require shareholder or regulatory approval, the filing said.

KLSE:CARIMINKLSE:SEALINK