This report is an updated version of the report published on 4 June 2025 at 11.07 AM AEST.

Eureka Group Holdings Limited (ASX: EGH)

 EGH provides independent rental accommodation to independent retirees who are supported by the Australian Government pension. The company was listed on ASX on 01 July 2004.

Recommendation Rationale – SELL at AUD 0.590

• Financial Highlights: EGH’s total operating expenses increased to AUD 18.77mn in 1HFY25 vs AUD 17.42mn in 1HFY24, due to increased village operating expenses, employee expenses, and other expenses. Net cash inflow from operating activities declined to AUD 1.24mn in 1HFY25 vs AUD 3.77mn in 1HFY24.
• Trading Near the Resistance: EGH stock has surpassed its R1 level recommended on 27 May 2025. Therefore, share price can face resistance at the current levels.
• Overvalued Multiples: On a forward 12-month basis, key trading multiples (Price/Book, Price/Cash flow) are higher than the median of the Real Estate Sector.
• Market Risk: Changes in laws, regulations, and government policies particularly those affecting property development, environmental standards, and taxation may adversely impact operations and returns.

EGH’s Daily Price Chart

Valuation Methodology: Price/Earnings Approach (FY June'26E) (Illustrative)

Stock might trade at a slight premium to its peers considering the revenue growth in 1HFY25, increased underlying EBITDA, benefit from recent acquisition, and expected EBITDA for FY25. For conducting the valuation, the following peers have been considered: Ingenia Communities Group (ASX: INA), Dexus Industria REIT (ASX: DXI), and Centuria Office REIT (ASX: COF) have been considered.

Considering that the stock has surpassed its R1 level, rally in share price movement, current trading level, and risks associated, the share price can face consolidation at the current levels. Hence, a ‘Sell’ recommendation is given on the stock at the current price of AUD 0.59 (as of 4 June 2025, at 10:05 AM AEST).

Markets are trading in a highly volatile zone currently due to certain macro-economic issues and geopolitical issues prevailing geopolitical tensions. 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 4 June 2025. 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.

Note 4: Dividend Yield may vary as per the stock price movement.

Note 5: Kalkine reports are prepared based on the stock prices captured either from REFINITIV or Trading View. Typically, REFINITIV or Trading View may reflect stock prices with a delay which could be a lag of 25-30 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice.

Technical Indicators Defined: -

Support: A level at which the stock prices tend to find support if they are falling, and 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 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.