Australia's HMC Capital hits record high on hiking AUM forecast, upbeat earning guidance

HMC Capital

27/11/2024 01:12

Nov 27 (Reuters) - Australian asset manager HMC Capital's shares rose to an all-time
high on Wednesday, after the company bumped up its assets under management (AUM) forecast and
signalled higher full-year earnings.
    Shares of HMC  HMC.AX  rose as much as 7.3% to a record high of A$13.160 in early trade,
outpacing a 0.5% jump in the benchmark S&P/ASX 200 index  .AXJO .
    HMC, founded by banker-turned-investor David Di Pilla, said it expects its AUM to grow to
over A$50 billion ($32.34 billion) within the next three to five years.
    That compares to its previous medium-term forecast of A$20 billion, which the company now
expects to achieve in fiscal 2025.
    The Sydney-based firm also said it was on track for pre-tax operating earnings of 70
Australian cents per share in fiscal 2025, up 89% year over year.
    It cited outsized performance by its private equity fund, HMC Capital Partners Fund I, along
with income expected from its recently established A$2.75 billion digital infrastructure trust,
DigiCo REIT, as the reasons behind the jump in earnings.
    Last month, HMC bought Global Switch Australia in a A$1.94 billion deal, as it looks to tap
into the booming data centre sector and expand into more infrastructure investments.
    HMC's shares have doubled in value this year, including session's gains.

($1 = 1.5463 Australian dollars)

 (Reporting by Aaditya Govind Rao in Bengaluru; Editing by Alan Barona)
 ((Aaditya.GovindRao@thomsonreuters.com))