Equity Analysis /

AU : HUB24 - Momentum maintained

    Scott Murdoch
    Scott Murdoch

    Analyst - Contractors & Developers

    19 January 2021
    Published byCGS-CIMB

    HUB reported 2Q21 FUA of A$22bn, +15.5% for the quarter and +38.7% on pcp. Quarterly net inflows were A$1.72bn, 26.4% higher versus 1Q21 and up 36.8% on the pcp. Net flows to starting FUA (annualised) are 36%. Advisers using the platform increased 24% on the pcp to 2,280 (+5% on 1Q). Upside risk exists from strong acquisition execution (XPL) and further transition opportunities (eg IFL). The clearest downside earnings risk is the impact from potentially lower margin achieved on pooled cash. We continue to be attracted to the long-term scale opportunity and growth potential of the business; however, with the stock trading within range of our valuation we move to Hold (from Add).