As earnings season rumbles on, two ASX shares that have generated positive results are HealthCo Healthcare and Wellness REIT (ASX: HCW) and MLG Oz Ltd (ASX: MLG).
Thanks to positive earnings results, both have received strong ratings from the team at Morgans.
Here is what the broker had to say.
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HealthCo Healthcare and Wellness REIT
HealthCo Healthcare and Wellness REIT holds a $1.6 billion portfolio of 36 properties including hospitals, aged care, childcare, life sciences and research facilities as well as primary care and wellness assets.
In its HY26 results, the company reported:
- Revenue from ordinary activities up 6% to $30.5 million
- Revenue, including income from the share of losses/profits of equity accounted investees was down 51% to $14.7 million.
Additionally, the company could be set to pay a dividend yield of 9%.
Its share price has jumped almost 10% since Monday on the back of this news.
Following the results, the team at Morgans upgraded this ASX REIT to a speculative buy recommendation.
This included a price target of $1.05 per share.
From yesterday's closing price of $0.71, that indicates an upside of 47.8%.
HCW is edging towards a negotiated resolution for the Healthscope assets. Importantly, rent has been paid in full across the portfolio and HCW has executable agreements with alternative operators for all 11 hospitals – with new long-term leases at unchanged face rents (with incentives), should Healthscope breach the lease. Moderate gearing of 28.5% leaves HCW well-positioned to navigate the uncertain timing and gearing impacts from a managed decline to asset values.
MLG Oz
MLG Oz Ltd is a Kalgoorlie-based integrated mining services and resource asset management company.
It released HY26 Results on Tuesday that included:
- Statutory Revenue of $287.2 million, up 5.2%, compared to the prior corresponding period (pcp).
- Statutory Net Profit After Tax (NPAT) up 73.2% to $7.1 million (pcp $4.1 million).
- Pro-forma Earnings before Interest, Tax, Depreciation and Amortisation (EBITDA) of $36.5 million, up 24.5% on the pcp; pro-forma EBITDA margin of 12.8% (pcp 10.9%).
Its share price climbed higher on these results and is now up 23% year to date.
In a note out of Morgans, the broker increased its price target following these results to $1.20 (previously $1.00).
From yesterday's closing price of $1.07, that indicates a further upside of 12.15% for these ASX shares.
1H26 was ahead of expectations at all operating metrics. Earnings grew substantially (EBITDA +25% YoY) despite a relatively subdued top-line (+5%), which is indicative of a steady portfolio of haulage projects and a renewed focus on margins. MLG reinstated dividends which signals confidence in the outlook and the company's financial position.
