ASX:HSN
Hansen Technologies Ltd
Investment Summary
The fund managers believe that Hansen Technologies Ltd. (HSN), currently priced around $4.51, presents attractive upside potential over the next 12-18 months. Despite a 25% decline in share price due to unmet expectations from 1H24 results and increased costs linked to the acquisition of powercloud GmbH, they maintain a positive outlook. In their opinion, the market is undervaluing the management team’s ability to restructure and make powercloud a profitable and integral component of Hansen’s business. As a result, they identify upside risk to FY25 and FY26 estimates. Their channel checks suggest that the restructuring of powercloud is on track, and they anticipate further updates that could reinforce this optimism.
Commentary From The Managers
Endeavor Asset Management
31 July 2024
$4.51
- Endeavor Asset Management initiated a position in Hansen Technologies (HSN) in July, believing it offers attractive upside in the next 12-18 months.
- HSN specializes in billing systems software for the energy, utilities, and telecommunications sectors.
- The share price has seen a decline of around 25% in the last 6 months due to several negative factors.
- Key issues stem from 1H24 results falling short of expectations, largely due to increased costs from the German acquisition of powercloud GmbH.
- Endeavor believes the market is undervaluing the management's ability to restructure and make powercloud a profitable segment of Hansen's business.
- There is potential for upside risk to FY25 and FY26 consensus estimates.
- Through channel checks, it appears the powercloud restructure is on track, and further updates are highly anticipated.
Please note: The completeness, accuracy or current status of the investments referenced are not guaranteed.