TOL - 5th Aug, 2026
2 ideas in 200 words #13
These high-growth companies have strong tailwinds.
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Regal Partners Ltd (ASX: RPL)
RPL announced a cracking first-half result with NPAT for the half up ~100% to $90m. This was a notably strong result, but the share price…declined! Over the past 3 years RPL has averaged a 45:55 1st half:2nd half profit split. The worst was 2024 with a 60:40 split. If we begin with the ‘worst year’, a 60:40 split yields full-year NPAT of $150m – still 13% ahead of consensus. This equates to a PER of 7.1x. RPL’s payout ratio has averaged 72% since 2023. If we assume a payout ratio of 60%, then this generates a yield of 8.44% fully franked.
If 2026 is in line with the previous 3-year average, then this generates EPS of 53cps. That equates to a PER of 5.3x.
Even with the most conservative payout ratio of 50%, that equates to a dividend yield of 9.8% fully franked. And we would expect further buybacks to provide a boost in EPS, given the extent to which the stock is undervalued.
We have initiated our First Buy on...
Generation Development Group Ltd (ASX: GDG)
GDG has 3 quality business segments, being Lonsec, Evidentia and Generation Life Investment Bonds (IB). Evidentia and Gen Life are both high-growth businesses, but the latter in particular has us excited. Demand for IBs is being turbocharged by the Div296 legislation on super balances over $3m (est. at $224bn) and the proposed minimum 30% tax on capital gains and trust structures. IB sales for the June Quarter set a new record at $442m.
This is an increase of 34% over the pcp, and we believe that growth will actually accelerate in the coming quarters.
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Katana Asset Management was founded in September 2003 as a boutique investment management firm. Katana employs an all opportunity investment mandate being style, sector and market cap agnostic.
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Katana Asset Management was founded in September 2003 as a boutique investment management firm. Katana employs an all opportunity investment mandate being style, sector and market cap agnostic.
Expertise
Katana Asset Management was founded in September 2003 as a boutique investment management firm. Katana employs an all opportunity investment mandate being style, sector and market cap agnostic.
Expertise
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