Domain Holdings Australia Limited (DHG)
BUY

DHG - Stock Update

 23 Feb 2022
Sector: Communication Services

DHG Share price has returned all the way back to pre-COVID levels, despite the company being in much better shape today than it was back them.

Here are a few numbers to put DHG’s positioning into better perspective:

  • Core Residential Revenues up +50% in 1H22 vs. 1H20 (we use 1H20 for comparison because that is the last reporting period before COVID struck).
  • EBITDA $68.5m in 1H22 vs 45.8m in 1H20 (i.e earnings are ~50% higher, even after normalizing for Jobkeeper).
  • Already back to mid-cycle run rate on listings.

Source: Bloomberg

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Company overview

  • Domain Holdings is an Australian property marketplace which also hosts a portfolio of companies related to Australian residential property.
  • The momentum in Australia’s residential property market has allowed Domain to overcome impacts from Covid-19 restrictions, this supports our Buy recommendation for DHG. Our investment thesis remains that Domain is a better company currently than pre-Covid & will continue to benefit moving forward as Covid-19 restriction continue to ease.

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