HGH - Heartland Group Holdings

[Oliver Mander]

7% NPAT increase...not sure what that means yet, but probably supports the 7% increase in share price...but below the full year expectation of 12% NPAT growth. Would explain why the share pirece has softened below $2 over the last few weeks (starting even before the market decline). My 'quick view' seems to think the share price is fair value right now...maybe a slight softening in the achievability of end-of-year targets...

Disc: hold

[Oliver Mander]

...with negative op cashflow and capital raise continuing to fund a big increase in receivables.

[Filthy]

“Earnings per share for the six months ended 31 December 2017 was 6 cents per share, consistent with the 2017 financial year” – hmm, so no EPS growth? a bit disappointing.

“Heartland expects its NPAT for the year ending 30 June 2018 to be at the upper end of its previously advised range of $65.0m to $68.0m” - upper end of guidance - ok, good

Expansion in Ozzy & reverse mortgages sounding like a sweet spot, but overall I think this will be a little below (high) market expectations.

Be interesting to see the reaction today. Still reasonably happy to hold long term.



filthy

[Oliver Mander]

“Earnings per share for the six months ended 31 December 2017 was 6 cents per share, consistent with the 2017 financial year” – hmm, so no EPS growth? a bit disappointing.

“Heartland expects its NPAT for the year ending 30 June 2018 to be at the upper end of its previously advised range of $65.0m to $68.0m” - upper end of guidance - ok, good

They must be planning on a stonking 2H...having to make up an extra cent in EPS.

[percy]

half year announcement due today... hopefully we are still "well positioned" as percy would say.

Yes we remain "well positioned".
Strong equity ratio.
Growth coming from digital platforms.Good organic growth in all sectors.
Interesting noting the 45% increase "open for business" platform is achieving and the fact they will offer it to the Australians.
Also of interest is HBL's growth strategy in Australia, which is via brokers/Harmoney/Spotcap and their own platforms.
I also note HBL's statement of increasing lower risk/lower margin lending.Yet HBL's net interest margin remains high.
Some costs with new banking system are one offs.These as well as timing seems to have affected eps.
I see no reason for eps not to increase going forward.
3.5cps fully imputed dividend will be paid on 3rd April.Record date 16th March.

[Joshuatree]

Has their banking website improved at all, feedback was it is clunky and slow?

[winner69]

They must be planning on a stonking 2H...having to make up an extra cent in EPS.

Q1 npat up 12% and Q2 npat only up 3% giving 7% for 1st half

2nd half needs to be 19% up on pcp to achieve $68m

As they do what they say they will do yes a stonking 2H coming up.

No increase in eps in H1 .... and not much of an increase for the FY (Percy doesn’t like consistent eps ...he likes eps to be growing)

One thing for sure I don’t think that Jeff will be coming out touting npat of $70m for a while ...I misread him again ...although I take heart when he says impairments in the motor book also increased due to an intentional adjustment to risk settings in previous years which has resulted in a gradual but expected increase in impairment levels. - code word for proactive provisioning ...read into that what you want and the torrential rain in Wellington at the moment might be a hint.

Is hope a strategy?

[percy]

Has their banking website improved at all, feedback was it is clunky and slow?

Increase in business in all sectors would say it has.

[JeremyALD]

It's a good result, but I think the SP more than accounts for a strong year. If you look at this stock it has gone up well above its eps growth in the last couple of years.

[McGinty]

Has their banking website improved at all, feedback was it is clunky and slow?

If your asking about their Online banking platform, I would say no. The digital strategy hasn't made it there to improve the user experience as yet. Maybe later this year?