CGF +0.78%: Released FY21 earnings this morning that were smack on expectations, both in terms of earnings for FY21 and guidance for FY22. Normalised pre-tax profit of $396m for FY21 will jump by ~15% over the coming 12 months if they meet the midpoint of stated guidance (pre-tax profit $430m-$480m) as continued strength in annuity sales (sales doubled in 2H21 to $2.4bn) underpin the ongoing turnaround in the business. Higher interest rates would help as would an uptick in funds management fees. CGF have had a difficult time through COVID having cut risk in their book at the lows, battling an extended period of super low interest rates plus now they’ve also lost another CEO just 2.5 years into a 5 year term, however there is value there trading on ~14x earnings that are growing, just a few warts as well!
MM is neutral CGF, seeing some value around $5.86
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