Citi says Amotiv's AutoPacific Group impairment not surprising

Amotiv

22/07/2025 22:35

** Citi says Amotiv's AOV.AX AutoPacific Group (APG) impairment is disappointing but not surprising

** Company on Tuesday reported its review of APG's carrying value and flagged an impairment charge of A$180 million ($117.94 million) to A$190 million, which will impact its FY25 results

** APG has reported weaker-than-expected performance for some time due to external factors such as cyclical weakness in Australia, OEM (original equipment manufacturer) supply chain disruptions following COVID-19 pandemic

** Citi, however, considers APG a good business due to its dominant market share, low cost and high IP manufacturing located close to major OEMs; adds the business was acquired at the wrong time in the cycle

** Eleven of 12 analysts rate the stock "buy" or higher, one rates "hold"; their median PT is A$11.00, according to data compiled by LSEG

** Stock down 18% YTD, as of last close

($1 = 1.5263 Australian dollars)

 (Reporting by Anjali Singh in Bengaluru)

 ((anjali.singh2@thomsonreuters.com;))