Kingfish Posts 0.4% Gross Return with Mixed Company Performances

Portfolio Outperforms Benchmark Despite Mixed Company Results

Kingfish Limited (NZX:KFL) recorded a modest gross portfolio return of +0.4% in April 2026, edging out the S&P/NZX 50 benchmark which slipped 0.1%. The adjusted net asset value (NAV) return was a more modest +0.2%, reflecting the impact of expenses and fees. This marks a welcome rebound following a challenging first quarter, when Kingfish’s NAV fell 7.2% amid geopolitical tensions and consumer sector pressures.

The portfolio’s resilience was driven by standout performances from Mercury and Infratil, each gaining 7%, alongside an 11% surge in Vista Group shares. Mercury’s upgrade of its core operating earnings guidance to NZD 1.05 billion from NZD 1.0 billion was underpinned by a combination of disciplined portfolio management and a wetter-than-usual hydro season in New Zealand’s central North Island. The company’s Lake Taupo reservoir is unusually full, boosting renewable generation capacity and supporting earnings. Additionally, the commissioning of Mercury’s new OEC5 geothermal unit, with an annual output sufficient to power 55,000 homes, contributed to the positive outlook.

Operational Challenges Hit a2 Milk and Summerset

In contrast, a2 Milk’s shares plunged 25% following announcements of stock-outs in China caused by heightened regulatory testing and a production backlog. The company is incurring higher costs by air-freighting product to meet demand, though it expects these issues to resolve by the end of June. The stock’s sharp decline echoes the volatility seen earlier in the year when Kingfish’s NAV dipped amid geopolitical concerns affecting consumer-exposed names and tech sectors, including Vista Group, which had fallen 35% in that period Kingfish NAV Dips 7%.

Summerset’s shares fell 8% despite delivering its strongest sales quarter on record, with new sales up 34% and resales up 19% year-on-year. The negative market reaction appears linked to worries over the broader economic environment, including fuel price shocks, housing market uncertainty, and potential interest rate rises. While sales contracting remained steady through April, some softening was noted late in the month. Encouragingly, new unit sales have increased, supported by the opening of several large village main buildings across New Zealand and Australia.

EBOS Advances Automation and Earnings Outlook

EBOS shares dipped 4% amid guidance revisions pointing to slightly lower core operating earnings (EBITDA) of NZD 610-620 million for the current financial year, down from previous forecasts. The company attributes the revision to higher fuel and packaging costs, though underlying demand remains stable. A highlight was the opening of EBOS’s new 56,000 square metre distribution centre at Kemps Creek in Sydney, which is the largest in its network and part of a NZD 360 million renewal program. The highly automated facility has already delivered an 11% productivity improvement, with management targeting a 30% gain by 2027.

Capital Management and Portfolio Composition

Kingfish continues its capital management strategies with a dividend reinvestment plan offering shares at a 3% discount and an ongoing share buyback program. The recent warrant exercise saw only 1.4% of warrants converted into shares, with the remainder lapsing. The portfolio remains diversified, with the largest holdings including Fisher & Paykel Healthcare (18%), Infratil (15%), Mainfreight (8%), Auckland International Airport (8%), and Summerset (7%). Sector allocation is heavily weighted to Health Care (31%) and Industrials (25%), reflecting the fund’s long-term growth focus.