HUNTER HALL INTERNATIONAL LIMITED (HHL)



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General Information
Company Name: Hunter Hall International Limited
Stock Code: HHL
Website: www.hunterhall.com.au
GICS Sub-Industry: Other Diversified Financial Services
Market Cap ($M): 68
Equiv. Shares (M): 27

Current Price Data+
Current Price Open High Low Last Close Volume Price Movement
 $ 2.580 $ 2.600 $ 2.600 $ 2.580 $ 2.600 13,126 $ -0.020  -0.769 %

Current Broker Consensus Recommendation more
Recommendation: Hold
Recommendation Date: 1st Sep 2010
12 Month Target Price (average): $5.25
Brokers Surveyed: 2

Company Overview

Business Description:
Hunter Hall International (HHL) is engaged in an investment management business operating through wholly owned subsidiaries. HHL currently manages six investment trusts, which applies an Ethical Investment Policy.

Strategy Analysis:
HHL's objective is to develop a small premium quality investment and savings institution with a focus on international equities. The main challenge is to scale up a largely successful investment process which previously depended on the stockpicking talents of Executive Chairman Peter Hall. HHL has installed a more rigorous risk management and research process, has reduced portfolio concentration and has appointed a chief investment officer. The strategy is to increase FUM in the unlisted vehicles by using strong investment performance to attract net inflows. HHL's strategy for listed investment company Hunter Hall Global Value is to generate good investment returns and build assets so that HHV becomes the international equivalent of Argo Investments and Australian Foundation Investment Company. The company is working to improve the ratings of its products and to increase advertising, marketing and distribution activity. Hunter Hall Int. reported NPAT of $12.34m for the year ended 30 June 2011. Revenue from ordinary activities were $41.9m. Diluted EPS was 45.55 cents compared to nil cents last year. The final dividend declared was 21.1 cents, taking the full year dividend to 44.9 cents compared with nil cents last year.


Financial Summary
Year to Jun NPAT EPS EPS chg (%) PER DPS Yield (%) Franking (%)
2014  F 5,873.8 21.7 9.7 11.9 21.7 8.4 100.0
2013  F 5,353.3 19.8 -24.7 13.1 19.8 7.7 100.0
2012  A 7,110.9 26.3 -42.4 15.9 32.0 7.7 100.0
Source: Morningstar analyst estimates.

Peer Comparison
EPS Growth (%) P/E (%) Dividend Yield (%)
Company Mkt Cap 2012 A 2013 F 2014 F 2012 A 2013 F 2014 F 2012 A 2013 F 2014 F
Hunter Hall Int. (HHL) $69 M 1.0371 -0.2872 0.0972 9.3795 13.1579 11.9926 0.1231 0.0762 0.0835
IOOF (IFL) $2,050 M -0.1406 0.1269 0.1281 21.3801 18.9729 16.8190 0.0419 0.0468 0.0520
Macquarie Group (MQG) $15,491 M 0.2165 0.4295 0.1149 18.5291 12.9615 11.6255 0.0439 0.0546 0.0618
Perpetual (PPT) $1,912 M 0.1615 0.1184 0.1810 27.0797 24.2131 20.5015 0.0198 0.0259 0.0379
Platinum Asset Mgmt (PTM) $3,133 M -0.1447 0.0036 0.1749 24.4336 24.3471 20.7234 0.0382 0.0378 0.0461

Market Comparison
Earnings P/E Ratio P/B Ratio P/E Growth P/S Ratio
HHL 0.97 12.5 3.46 10.00 2.71
Market 0.82 14.6 1.24 1.87 1.73
Sector 1.21 19.8 1.16 1.32 5.26

Directors
Name Position Start Date
Mr David Michael Deverall Chief Executive Officer,Executive Director 31 July 2012
Mr Peter James MacDonald Hall Executive Chairman,Managing Director 13 January 1994
Mr William Wayne Hawkins Non-Executive Deputy Chairman,Non-Executive Director 22 December 2000
Mr Mark Benedict Forstmann Non-Executive Director 22 December 2000
Ms Naomi Edwards Non-Executive Director 14 October 2011

Management
Name Position
Ouafaa Karim Chief Executive Officer of Hunter Hall International (UK) Limited
Paula Ferrao Chief Operating and Financial Officer
Jeremy Freeman Company Secretary
Michael Walsh Interim CEO
Michael Walsh Interim CEO, Risk Manager
James Hordern Manager - Business Development and Marketing

Substantial Shareholders
Holding Name
11,604,998 (43.98%) Hampshire Assets and Services

Calendar of Events
Date Event
26 February 2014 Report (Interim)
10 December 2013 Report (Annual)
25 September 2013 Report (Annual)
30 August 2013 Report (Prelim)
© 2011 Morningstar, Inc. All rights reserved. The data and content contained herein are not guaranteed to be accurate, complete or timely. Neither Morningstar, nor its affiliates nor their content providers will have any liability for use or distribution of any of this information. To the extent that any of the content above constitutes advice, it is general advice that has been prepared by Morningstar Australasia Pty Ltd ABN: 95 090 665 544, AFSL: 240892 (a subsidiary of Morningstar, Inc.), without reference to your objectives, financial situation or needs. Before acting on any advice, you should consider the appropriateness of the advice and we recommend you obtain financial, legal and taxation advice before making any financial investment decision. If applicable investors should obtain the relevant product disclosure statement and consider it before making any decision to invest. Some material is copyright and published under licence from ASX Operations Pty Limited ACN 004 523 782 ("ASXO"). DISCLOSURE: Employees may have an interest in the securities discussed in this report. Please refer to our Financial Services Guide (FSG) for more information at www.morningstar.com.au/fsg.asp.

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