Regal Asian Investments Limited (ASX, RG8) reported a robust turnaround in its half-year results to 31 December 2025, posting a profit after tax of AUD 81.3 million and declaring a fully franked interim dividend of 8.0 cents per share.
- Half-year profit after tax of AUD 81.3 million reversing prior year loss
- Investment portfolio returned +33.9% net of fees
- Share price rose +69.2% over the period
- Declared fully franked interim dividend of 8.0 cents per share
- On-market share buy-back of 3.35 million shares costing AUD 8.05 million
Strong Financial Turnaround
Regal Asian Investments Limited (ASX – RG8) has delivered a striking financial performance for the half-year ended 31 December 2025, reversing a loss-making position from the previous corresponding period. The company reported a profit after tax of AUD 81.3 million, up from a loss of AUD 15.7 million in the prior year. This turnaround was driven by a substantial increase in revenue, which rose to AUD 147.2 million, reflecting strong gains across its investment portfolio.
Portfolio Performance and Market Reaction
The company’s actively managed portfolio, focused on long and short positions in Asian securities, returned an impressive +33.9% net of fees for the half-year. This performance was mirrored in the market, with RG8’s share price appreciating by +69.2%, signaling strong investor confidence. The portfolio maintained a leveraged position, with 141% long exposure and 42% short exposure, resulting in a net equity exposure close to 100%.
Dividend and Capital Management
Reflecting its improved profitability, Regal Asian Investments declared a fully franked interim dividend of 8.0 cents per share, payable on 24 March 2026. The company’s profits reserve increased significantly to AUD 179.5 million, underpinning future dividend payments. Additionally, the company continued its on-market share buy-back program, repurchasing 3.35 million shares at a cost of AUD 8.05 million as part of its capital management strategy. This buy-back follows shareholder approval granted at the 2024 AGM, allowing up to 25% of shares to be repurchased over 12 months.
Operational Support and Governance
Regal Partners Limited, the investment manager, maintained strong alignment with RG8 shareholders by covering the majority of the company’s operating expenses, amounting to over AUD 200,000 during the period. The half-year financial report was independently reviewed by KPMG, with no issues raised, reinforcing confidence in the company’s financial disclosures and governance.
Outlook and Subsequent Performance
Post-period, the company reported an additional portfolio return of +11.1% for January 2026, suggesting momentum continues into the new calendar year. While no explicit forward guidance was provided, the strong results and capital management initiatives position RG8 as a compelling player in the Asian investment space, albeit with leveraged exposure that warrants close monitoring.
Bottom Line?
Regal Asian Investments’ strong half-year rebound and capital moves set the stage for a closely watched 2026.
Questions in the middle?
- How will RG8 manage risks associated with its high leverage and short positions going forward?
- What sectors or markets within Asia are driving the portfolio’s strong returns?
- Will the company continue its aggressive share buy-back program beyond the current approved limits?