Highlights:

  • HMC Capital has received a buy rating from Bell Potter Securities (Institutional) with a target price of AUD 8.15 per share.
  • The rating accompanies the company’s FY25 update, which outlines its growth across five established investment platforms.
  • HMC Capital continues to maintain a forward outlook supported by reaffirmed earnings and dividend guidance for FY26.

HMC Capital (ASX:HMC) has received a buy rating from Bell Potter Securities (Institutional), accompanied by a target price of AUD 8.15 per share. The rating coincides with the company’s FY25 performance update, which highlights the expansion of its diversified investment platforms and the scaling of assets across multiple sectors.

Expansion Across Five Growth Platforms

HMC Capital has now developed five scalable platforms spanning real estate, private equity, private credit, digital infrastructure and energy transition. Each platform contributed to the group’s overall activity during FY25, with continued progress in asset development, platform establishment and capital deployment.

In real estate, the unlisted platform recorded 32% growth in unlisted assets under management during FY25. Two new daily needs funds, HARP and HUG, were added to the portfolio, together targeting up to AUD 2 billion in assets under management.

The private equity segment reported returns from HMCCP Fund I, which delivered a net return of 43.6% for the year and generated AUD 25 million in performance fees. Since inception to 30 June 2025, the fund achieved a 29.6% annualised net return.

The private credit division recorded 21% AUM growth during FY25, supported by commercial real estate lending activities and continued investment in its development pipeline.

The digital infrastructure arm oversaw the establishment and listing of the AUD 4.6 billion DigiCo Infrastructure REIT (ASX:DGT). Additional advances included progress on data centre initiatives and increased contracted IT capacity.

The energy transition platform enhanced its position following the acquisition of Neoen’s Victorian portfolio for AUD 950 million, while advancing the introduction of third-party capital through an ongoing fundraising process.

FY25 Financial Performance

For FY25, HMC Capital reported operating earnings per share (pre-tax) of 56.0 cents, representing an increase compared with FY24. Assets under management reached AUD 18.7 billion as of June 2025, marking a 47% rise year-on-year. The company recorded a net cash position and reported NTA plus undrawn debt of AUD 2.0 billion.

Funds management EBITDA for the year totalled AUD 102.6 million, showing significant growth compared with the previous financial year. The declared dividend for FY25 stood at 12.0 cents per share, partially franked.

FY26 Guidance and Outlook

HMC Capital has reaffirmed its FY26 pre-tax earnings target of at least 40 cents per share, which aligns with its stated long-term growth path. The company reiterated its FY26 dividend guidance of 12 cents per share.