Half year results were posted 9.02am. Is it a glitch in the nzx that it is not showing?
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The Heartland website says 4:02pm.
Full year profit $73.6m $0.065cps div https://shareholders.heartland.co.nz.../announcements
All honky dory
Everything going to plan
https://yourir.info/resources/3c731e29233aab51/announcements/hgh.nzx/339194/3/HGH_Heartland_announces_full_year_profit_of_$73.6_ million.pdf
Big increase in the final divie is a very pleasant surprise.
Bloody amazing result ....no, truly amazing really
Well done Jeff and his team
Won’t mention that inclusiveness and diversity really does produce superior results....leave that for another day
EPS up from 12.4 cps to 12.9 cps, up just 4%.
Outlook mid point is $78.5m which on 569.3m shares (will be slightly more due to dividend reinvestment scheme effect) gives about 13.8 cps. Probably 13.6-13.7 cps after new shares issued under the DRIP.
$1.60 / 0.136 = forward PE of 11.7.
I'd call this a very average result. I'm holding but will not be confusing sentiment with the real facts as reported or the pervasive sentiment regarding the macro economic outlook. Dividend increase is the best aspect to this result. Shares probably fairly priced in my opinion considering the storm clouds of a global economic slowdown are so clearly evident.
Solid result (EPS up 4% - I don't think it was meant to grow this year at all actually due to increase in shares issued), and fairly solid outlook (EPS likely going up about 5%)... especially given these turbulent times (slowing economy and depressed dairy prices?) and interest rates decreasing...
New structure must be working, as other 'banks' have failed to deliver... Although NTA flat and Price to NTA still a bit elevated...
Although $1.60-70ish is probably about fair value, I'll probably try snatch a bit more up at $1.60 or below, simply because of the high yield, that (importantly) looks fairly sustainable (in these every decreasing yield times)
I look at it differently Beagle. As we know, we have recently had a big capital raise and issuing of lots of new shares. Maintaining (slightly increasing) EPS and ROE this quickly tells us the new capital has been put to good work very swiftly, growing most parts of the business and increasing NPAT and dividend.
I don't like the increase in dividend as I believe they should keep that cash, but man I like the 24% growth in the Aussie REL business.
I think this is much better than a "very average result" !
I am going off memory here but if I recall correctly last year's eps growth was just 2.5%. 4% this year...I suppose if we normalise this as they have in the presentation for one-off restructuring costs it looks a lot more impressive, see page 31 of their presentation http://nzx-prod-s7fsd7f98s.s3-websit...193/305399.pdf, they get to 13.7 cps which is a very solid 10.5% eps growth excluding restricting costs so what you suggest Iceman is fair comment on a normalised eps basis.
The problem with doing that though is if we look at the mid point of the forecast $78.5m and I have now modelled an extra approx. 11m shares to be issued in FY20 under the DRIP we have 78.5 / 580m shares = 13.5 cps for FY20, this is less than FY19 earnings adjusted for one-off restricting costs !. Even if you start buying into the whole weighted average shares on issue thing, eps growth in FY20 will be nothing compared to adjusted eps for FY19.
Suppose its good that if we look at the 2 year average from FY18 of 12.2 cps by FY20 we've moved up to approx. 13.5 cps so no matter how you slice and dice the restructuring costs they're forecast to grow earnings by 10.6% over two years or just over 5% per year on average. Probably better than most of the Australian owned banks and HGH better positioned regarding capital adequacy than them too. So that's all good.
Is a forward PE this early in FY20 of 11.7 really cheap though for where we are in the economic cycle with a possible recession looming (with implied extra loan provisioning and write-off's) ? Looks about fair value to me.
Just as well Heartland don’t do the Oceania thing and highlight Comprehensive Income
Comprehensive Income down from $71m last year to $66m this year ....foreign exchange impacted NZD value of Aussie assets and such things.