Why are MA Financial (ASX:MAF) shares grabbing spotlight today?

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  • MA Financial Group shared its FY21 & FY22 earnings guidance.
  • The Group anticipates an over 50% increase in its FY21 underlying Earnings per Share (EPS) from FY2020 at 37.7 cents.

The shares of ASX listed MA Financial Group Limited (ASX:MAF) have been grabbing the spotlight today as the Group announced its FY21 and FY22 earnings guidance.

Following the news, MAF shares are trading 8.8% higher at AU$9.61 per share at 1.20 PM AEDT.

As per the announcement, the company has adjusted its earnings guidance as some of its Redcape Hotel Group’s Hospitality assets increased its valuations.

Redcape Hotel Group revaluations

The independent board of Redcape undertook a revaluation process on 31 December 2021, which increased the Director’s Net Asset Value (NAV) of Redcap securities. The NAV increased from AU$1.310 on 30 June 2021 to AU$1.465 on 31 December 2021 per Redcape security, reflecting solid market sales in late 2021.

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This sudden increase in the NAV value also reflects the ongoing compression of market capitalisation rates supported by multiple sales of hotels. As most of the revaluations are based on Directors’ valuations, there will be no performance fee related to Redcape in 2H21.

Earnings guidance

The Group anticipates an over 50% increase in its FY21 underlying Earnings per Share (EPS) from FY2020 at 37.7 cents. Based on upgraded FY21 EPS guidance, MAF expects its FY22 underlying EPS to increase between 10%-20% on FY21 results.

This anticipated increase in FY22 guidance is likely to increase FY22 Underlying EPS by 2-3% from December 2021 guidance, which is expected to be 41.5 cents to 45.3 cents.

Julian Biggins, Joint-CEO of MA Financial, said:



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