Challenger (CGF) FY15 Financial Results: There is a lot to be happy about
Challenger's COE Margin, despite some concerns, actually went up by 10bps from 1H15 to 2H15. They have reintroduced a Care Annuity product called CarePlus, which we noted in a recent report as a major key
catalyst for the company given its strong sales potential. In addition to new CarePlus product, there is the new VicSuper white label, and Colonial Platform annuity product – which should add to growth in the September quarter. DRP introduced given move to 100% franking and strong growth rates in business. Funds Management FY15 EBIT of $44m, vs our $45m estimate.
Read our full summary here: <a href="http://www.bellpotter.com.au/topnavigation/research.aspx?id=1814" target="_blank" data-event-type="click" data-event="link_click">(VIEW LINK)</a>
Outlook: Life COE guidance for FY16 is strong. The company guidance is for FY16 range of $585m - $595m Life COE. However, this includes a reduced normalised growth assumption for equities from 6.0% to 4.5% which reduced guidance by ~$13m. Despite this, it still compares well to consensus. On a like for like basis excluding the revised normalised growth assumption, consensus was at $589m, company guidance would be at ~$602m and our top of the market estimate was $607m. This implies that the company expects book growth and margins to remain strong in FY16. Overall a strong result, a lot to be happy about. In reinforces our view that CGF remains a top pick in the space. Don’t expect much change to our top of the market estimates. Read our full summary here: http://www.bellpotter.com.au/topnavigation/research.aspx?id=1814
Never miss an update
Enjoy this wire? Hit the ‘like’ button to let us know.
Stay up to date with my current content by
following me below and you’ll be notified every time I post a wire
Bell Potter Securities is a leading Australian stockbroking, investment and financial advisory firm that provides a comprehensive offering of financial services to a diversified client base that includes individuals, institutions and corporations.
2 topics
1 stock mentioned
Stockbroker
Bell Potter Securities is a leading Australian stockbroking, investment and financial advisory firm that provides a comprehensive offering of financial services to a diversified client base that includes individuals, institutions and corporations.
Expertise
Stockbroker
Bell Potter Securities is a leading Australian stockbroking, investment and financial advisory firm that provides a comprehensive offering of financial services to a diversified client base that includes individuals, institutions and corporations.
Expertise
Comments
Comments
Sign In or Join Free to comment