Kingfish Portfolio Surges 5.5% in May Led by Fisher & Paykel and Infratil

Kingfish Portfolio Outperforms Benchmark with 5.5% Gross Return

Kingfish Limited (NZX:KFL) delivered a strong May performance, with its portfolio gross return hitting 5.5% and adjusted NAV return close behind at 5.4%. This outpaced the S&P/NZX 50 benchmark’s 2.6% gain, marking a notable month of outperformance driven by several key portfolio contributors.

Portfolio manager Matt Peek highlighted the impact of positive company results during the May reporting season, which underpinned the strong returns. The fund remains concentrated in 15-25 quality New Zealand growth companies, with no gearing and a focus on long-term capital growth and dividends.

Fisher & Paykel Healthcare Leads with Robust Fiscal Year Results

Fisher & Paykel Healthcare, Kingfish’s largest holding at 17% of the portfolio, advanced 2% in May following a solid full-year result to March 2026. Revenue jumped 14% and net profit surged 24%, led by the Hospital division’s 15% constant currency revenue growth. This was fuelled by strong hardware demand as clinical adoption of its respiratory and humidification products expands.

Despite tariff headwinds and cost pressures linked to the Middle East conflict, gross margins improved to 63.7%, supported by operational efficiencies and pricing power. The company’s cautious guidance for the new financial year anticipates continued revenue growth but at a moderated pace, reflecting a potential easing in hardware demand after a period of elevated sales. Still, its long-term outlook remains positive, anchored by ongoing innovation and global expansion opportunities.

Infratil’s Data Centre Contract Boosts Earnings Outlook

Infratil (+26%) was another standout, propelled by a landmark 555-megawatt data centre contract with a US hyperscaler. This deal accelerates CDC Data Centres’ path to over 1 gigawatt of contracted capacity and supports new guidance for core operating earnings (EBITDAF) to exceed A$1 billion by 2028. The contract underscores CDC’s leading position in Australia’s data centre market, particularly for AI applications.

Infratil’s broader portfolio also showed promise. Its US renewable energy arm Longroad Energy extended its core operating earnings target from US$700 million to US$1 billion by 2029-2030, with an increased project delivery pace. Meanwhile, One NZ delivered solid results despite a tough consumer environment, and the sale of $495 million in Contact Energy shares funded growth in CDC and Longroad.

a2 Milk Faces Recall and Regulatory Challenges

Not all news was positive. a2 Milk (-24%) shares fell sharply after announcing a voluntary recall of a small batch of its a2 Platinum infant formula in the US due to contamination concerns linked to a global oil ingredient supplier. The recall follows ongoing stock-outs in China amid heightened regulatory testing and production backlogs. Notably, no contamination was reported in products sold in China.

Mercury Commits to Geothermal Expansion to Support NZ’s Energy Needs

Mercury (+4%) signalled a major investment push with a $75 million commitment to geothermal drilling near Taupō, part of a broader plan that could see up to $1 billion invested in new geothermal projects. These projects aim to provide consistent baseload power to meet rising electricity demand from electric vehicles and industrial users, offering a cost-effective alternative to intermittent renewables.

Vista Group Validates Growth Strategy with New Cinema Contracts

Vista Group (+38%) emerged as the top performer in the portfolio, securing three major contracts with global cinema chains. Cineworld UK expanded its use of Vista’s Digital Enablement products across 88 sites, while Cinépolis Mexico signed up for the full suite of digital and operational products. Former customer Cinemex also returned to Vista’s on-premise solutions, reinforcing confidence in Vista’s product offerings and near-term growth prospects.