EAH has issued an H1-25 trading update, indicating it is experiencing specific headwinds in China and South-East Asia which will impact on FY25 results. It now expected these to be similar to results achieved in FY23, implying an outturn of ~£85m revenues and £7.2m Adj EBITDA. This would be 9% and 13% respectively below our previous expectations. Whilst this is a setback, it does nothing to change the fundamental investment case. This rests on the successful delivery of new products from the pipeline, which remains on track starting in CY25. As a result, we stay at Buy with a TP of 258p.
