Sales inflow was $52m in the September quarter, up 41% on the prior September quarter albeit down on the stellar June quarter. While execution by the new management team has impressed Morgans, a further leg up in sales growth remains key to a re-rating.
The company has delivered a strong quarterly performance, Morgans observes. The broker lifts FY18 estimates for earnings per share by 8% and FY19 by 22%. There was another material jump in sales inflows.
Generation Development Group has announced its funds update for the March quarter. Investment bond sales were up 84%. Morgans likes the long-term story and, subsequent to recent changes to superannuation rules, expects alternative low-tax investment options like investment bonds will experience significant structural growth.