Netwealth Group Limited

Section 1: Company Overview and Fundamentals

1.1 Company Overview:

Netwealth Group Limited (ASX: NWL) provides financial services to financial intermediaries and investors. This mainly includes managed funds, investor-directed portfolio services, a superannuation master fund, separately managed accounts, and self-managed superannuation administration services.

1.2 The Key Positives, Negatives, Investment Highlights and Risks

1.3 Top 10 Shareholders: The top 10 shareholders together form ~66.30% of the total shareholding. Heine Brothers Pty. Ltd. and Leslie Max Heine Pty. Ltd. hold a maximum stake in the company at ~46.14% and ~7.23%, respectively.

1.4 Key Metrics:

During 1HFY22, the company recorded an ROE of 28.2% against the industry median of 5.0%. In addition, the asset turnover ratio for 1HFY22 stood at 0.62x as compared to 0.03x of the industry median.

Section 2: Business Updates and Financial Highlights

2.1 Business Updates:

2.1 Insights of Q3FY22:

Section 3: Key Risks and Outlook:

Section 4: Stock Recommendation Summary:

4.1 Price Performance and Technical Summary:

4.2 Fundamental Valuation

Valuation Methodology: P/E Multiple Based Relative Valuation (Illustrative)

Markets are trading in a highly volatile zone currently due to certain macroeconomic issues and geopolitical tensions prevailing. Therefore, it is prudent to follow a cautious approach while investing.

Note 1: The reference data in this report has been partly sourced from REFINITIV

Note 2: 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.

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.

Stop-loss: In general, it is a level to protect further losses in case of any unfavourable movement in the stock prices.

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