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Highlights

  • MA Financial is a diversified financial services provider
  • In 1HFY24, revenue of MAF increased by 5% YoY to AUD 134.5 million
  • In 2HFY24, the company expects continuation of asset management fund inflows

MA Financial Group Limited (ASX:MAF) is an ASX-listed diversified financial services provider that offers services related to asset management, corporate advisory, lending and equities.

In the first half of the financial year 2024 (1HFY24), the company witnessed 5% YoY growth in its revenue to AUD 134.5 million, backed by gross fund inflows of AUD 1.1 billion during the reported period, up 16% YoY. Despite the revenue growth, the underlying EBITDA fell by 16% YoY to AUD 38.3 million, driven by investments in future growth. The strategic investment in 1HFY24 in growth initiatives led to an AUD 8.6 million fall in EBITDA.

The underlying NPAT in 1HFY24 fell by 27% YoY to AUD 17.8 million, which was affected by a 37% increase in net interest expenses.

Growth prospects for financial services sector

According to the data released by the Australian Bureau of Statistics (ABS) on 15 August 2024, employed individuals grew by almost 58k in July 2024. In the same period, unemployed people increased by 24,000, resulting in a record-high labour force participation rate of 67.1%.

With the increase in employment rate in July 2024, the employment-to-population ratio went up by 0.1 percentage point to 64.3%. The data shows that employment growth surpassed population growth.

The growth in employment in July and the record-high participation rate are positive indicators for financial services firms.

Outlook

In 2HFY24, the company expects continuation of asset management fund inflows, along with institutional real estate credit vehicle commitments of minimum AUD 700 million. During the reported period, the recurring revenue margin in asset management is expected to increase to around 160bps.

Moreover, MAF expects the ongoing growth in Finsure’s revenue and MA money will reach the breakeven earnings run rate by October 2024

Share performance of MAF

MAF shares closed 16.33% higher at AUD 5.13 apiece on 22 August 2024 with a market cap of AUD 799.72 million. MAF’s share price increased by 17.66% in the last one year, while in the last three months, it has increased by 11.76%.

MAF’s 52-week high is AUD 6.045, recorded on 30 January 2024, while 52-week low is AUD 3.92, recorded on 7 August 2024.

MAF Daily Technical Chart, Source: EODHD/Others

Note 1: Past performance is neither an Indicator nor a guarantee of future performance.

Note 2: The reference date for all price data, and currency, is 22 August 2024. The reference data in this report has been partly sourced from EODHD/Others.