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This report is an updated version of the report published on 25 July 2024 at 3:54 PM AEST.
Company Overview
Company Overview: MA Financial Group Limited (ASX: MAF) is a diversified financial services provider that is specialized in asset management, lending, corporate advisory, and equities. Helia Group Limited (ASX: HLI) is an Australian company that offers lenders mortgage insurance (LMI) in Australia. The company's LMI protects lenders when a borrower fails on a home loan and there is a deficit in the selling revenues from the secured property. Kalkine’s Sector Report covers the Investment Summary, Sector Overview & Supporting Catalysts, Data Insights & Analysis, Financial Metrics, Financial Commentary, Risks, Outlook, Technical Analysis along with the Valuation, Target Price, and Recommendation on selected stocks.
Investment Summary
Sector Overview and Supporting Catalysts
Data Insights and Analysis
Index Performance
Investment theme and stocks under discussion (MAF, HLI)
After understanding the sector, let us now look at two companies from the financial services sector listed on the ASX. The price potential of the companies under discussion have been analysed based on Price/Book Value relative valuation multiple method.
1. ASX: MAF (MA Financial Group Ltd)
(Recommendation: ‘Speculative Buy’ at AUD 4.330; Potential Upside: Low Double-Digit; MCap: AUD 801.53mn)
MAF is a diversified financial services provider that is specialized in asset management, lending, corporate advisory, and equities.
The stock has witnessed a correction of ~22.24% in last six months, and over the past three months, it has declined by ~2.84%. The stock has a 52-week low and 52-week high of AUD 4.100 and AUD 6.045, respectively and is currently trading below the 52-week high-low average. MAF was last covered in a report dated ‘21 February 2024’.
2. ASX: HLI (Helia Group Limited)
(Recommendation: ‘Hold’ Potential Upside: Low Double-Digit; MCap: AUD 1.13bn)
HLI is an Australian company that offers lenders mortgage insurance (LMI) in Australia. The company's LMI protects lenders when a borrower fails on a home loan and there is a deficit in the selling revenues from the secured property.
The stock has witnessed a correction of ~12.41% in last six months, and over the last three months, it has declined by ~3.70%. The stock has a 52-week low and 52-week high of AUD 3.320 and AUD 4.940, respectively and is currently trading below the 52-week high-low average. HLI was last covered in a report dated ‘20 June 2024’.
Markets are trading in a highly volatile zone currently due to certain macro-economic issues and geopolitical tensions prevailing. Therefore, it is prudent to follow a cautious approach while investing.
Note 1: Past performance is neither an Indicator nor a guarantee of future performance.
Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is 25 July 2024. The reference data in this report has been partly sourced from REFINITIV.
Note 3: Investment decisions should be made depending on an individual’s appetite for upside potential, risks, holding duration, and any previous holdings. An ‘Exit’ from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.
Technical Indicators Defined: -
Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.
Resistance: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Resistance 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Resistance 2 may act as the crucial resistance level for the stock.
Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.
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Past performance is not a reliable indicator of future performance.
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