Hanson Technologies (HSN) Update
Hi MM, Can we please have an update on MM's views on, and intentions in relation to, HSN following its FY25 results released today (and the somewhat wild price action that followed). Thanks, Darren
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Answer
Hi Darren,
It certainly was a wild ride with the stock trading in a 16% intra-day range before closing down just 6%. The reason for the fall was FY26 uncertainty as it said “FY25 had a higher proportion of licence revenue than is expected in FY26” in the ASX release.
FY25 was solid:
- FY25 revenue came in at $392.5mn basically in line with $394mn estimates.
- EBITDA $111.7mn beat the $110.0mn expected.
After a company releases a result, they then go around and talk to brokers, analysts and institutional investors, and provide more context around the numbers. That’s what we believe played out with HSN, where more confidence was gained in the subsequent commentary.
UBS actually upgraded the stock after the result albeit less than 3%, but there were no material changes lower to price forecasts by the 8 brokers that cover it. At this stage the stocks trading on a fair valuation and we feel management are being prudent around the next 12-months, we plan to hold our position.
