IHP: Growth hidden in plain sight

研报英文原文证据摘录

IHP: Growth hidden in plain sight

2.07 24.87

P/AEPS 18.5x 16.3x 14.3x 12.7x

Effective price freeze and cost control create operating margin inflection. DPS 11.30 12.43 14.01 15.79

Management have elected to keep charges broadly flat YoY in 2026, Prev. 12.29 13.69 15.42 Div Yield 3.5% 3.9% 4.3% 4.9% reflecting the group's strong competitive position and a departure from

prior practice. We therefore forecast more moderate revenue margin Revenue: Total fee income, including Time For Advice revenue.

attrition for FY26. Following a period of elevated investment, expense All market data in GBp; all financial data in GBP; dividends paid in GBp.

guidance is for just 3% growth in FY26 and FY27. The company's track Priced as of prior trading day's market close, EST (unless otherwise noted).

record of beating cost numbers gives us confidence management will

deliver. The combination of resilient revenue margins, restrained cost

growth, and strong organic AUA growth means we expect operating

margins to increase in FY26 and across our forecast period.

Attractive valuation and entry point. We believe IHP's improving margin

dynamics and earnings growth acceleration are not adequately reflected

in the share price, which has become disconnected from positive earnings

revisions over the last 12 months. The group trades only slightly above its

minimum PE since IPO at 15.1x 12m fwd, and at a material discount to

closest peer AJB (17%). A strong earnings CAGR of 14% means the group

can deliver 48% share price growth over three years at this undemanding

rating. We see scope for multiple expansion alongside earnings growth,

creating an attractive setup for the shares.

Expect robust 1H numbers, with AI strategy in focus. IHP reports 1H/FY26

results on Wed 20 May.