HMC Capital shares rocket on assets under management growth
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More news: HMC Capital shares surged more than 12% in morning trade after the alternative asset manager reported a 45% jump in assets under management (AUM) for the first-half of the financial year.
HMC shares were up 12.3% to $11.12 at midday AEDT, extending gains of more than 75% over the last 12 months.
Jarden analysts called it a "strong headline and underlying 1H25 result", boosted by "significant" AUM growth and fees.
They noted that fee-earning AUM of $14.8 billion was ahead of their expectations, and said Jarden's full-year forecast of $16.8 billion could prove conservative.
What they said: "We believe this result will please the supporters of the group but the marginal new investor may need to see more evidence of all the growth initiatives delivering more recurring earnings," the analysts said.
HMC Capital posts record result as AUM surges 45%
The news: HMC Capital posted a record half-year result, with pre-tax operating earnings soaring 240% to $202.2 million and assets under management (AUM) jumping 45% to $18.5 billion.
Strong private equity returns and major transactions, including the $2.7 billion IPO of DigiCo Infrastructure REIT, also helped push satutory profit after tax to $166.9 million.
The company declared a fully franked interim dividend of 6 cents per share - in line with expectations - and reaffirmed its full-year dividend guidance of 12 cents per share.
The result was underpinned by strong investment returns and performance fees from HMC’s private equity division, as well as increased deployment activity across digital infrastructure, energy transition and private credit.
Pre-tax operating earnings per share were 51.99 cents during the half, with the asset manager saying the metric was on track to hit 80 cents for fiscal 2025.
What they said: “A key highlight for the half was the successful establishment of the $4.3bn DigiCo Infrastructure REIT which means HMC is now a global manager in the rapidly growing and opportunity rich data centre sector," said CEO David Di Pilla.
“We are seeing momentum pick-up in our real estate division which is on-track to establish three major new unlisted institutional funds which will add over $2.5bn of potential AUM as we deploy into these new strategies."
The sources: ASX, Jarden research
