Azzet reports on three ASX stocks with notable trading updates today.
Helia tanks after advising market of ING contract uncertainty
Shares in Helia Group (ASX: HLI), formerly Genworth Australia, were down 25% at the open after the lenders' mortgage insurance (LMI) provider told the market that its long-term customer ING Bank was looking to negotiate deals with alternative providers.
While Helia’s contract with ING doesn’t expire until 30 June, ING has the right to exit the contract on three months' notice.
Loss of ING’s LMI business - which accounts for 17% of Helia’s 2024 gross written premium (GWP) - would be another hit to the company’s earnings after long-term partner Commonwealth Bank (ASX: CBA) – which accounted for 44% of GWP in FY24 - exited its LMI contract last December.
While the impact of ceasing to write new business from ING will emerge gradually over time, Helia's management was quick to remind the market that revenue associated with in-force policies (from ING) will be recognised over the next 15 years.
Meanwhile, the board has commenced a comprehensive business review and has already flagged the likely increase in organic capital generation and scope for further capital management activity.
As well as considering the business response to the expected loss of new business from two significant customers, the board’s review will also include the broader impact of the recently announced changes to the Government’s Home Guarantee Scheme for first home buyers on the company’s operating environment.
Today’s market update coincides with the appointment of interim CEO and former CFO Michael Cant following the exit of outgoing CEO Pauline Blight-Johnson last Monday.
Fingers were pointed at Blight-Johnson after she sold around $2.6 million worth of shares only days after revealing the loss of the CBA contract.
Helia’s market cap is around $1.1 billion; the share price is up 14% over one year and down 2.6% year to date.
The stock is in a strong bullish trend confirmed by multiple indicators.
Consensus is Hold.
Domino’s tanks on news recently-appointed CEO is leaving
Shares in Domino’s Pizza (ASX: DPM) went into a tailspin at the open (down 23%) after the fast food pizza retailer revealed to the market that, after only five months in the top job, CEO Mark van Dyck has flagged plans to step down in December.
Today’s share price drop means Domino’s share price is down by almost half (44%) since the start of 2025.
The announced exit of van Dyck on 23 December is clearly not a good look for this former ASX darling, which has faced a challenging consumer environment with inflation and cost-of-living pressures, particularly in Europe.
Van Dyck had big shoes to fill, having taken over from long-serving CEO Don Meiji.
Despite closing stores across key geographies and delaying medium- to long-term store rollout targets, JP Morgan upgraded Domino's Pizza shares from underweight to neutral mid-June.
While the broker believes the discount built into the multiple for future consensus earnings downgrades now provides a large margin of safety, this client note predates today’s bombshell announcement.
While earnings visibility remains low, the broker sees the balance of earnings risks to the downside and expects FY26 and FY27 EPS around 10% below consensus.
Meanwhile, the board has initiated a global search process to appoint a new group CEO to do what van Dyck was hired to do – lead the business through the next phase of growth.
While van Dyck has stepped down from the board, chairman Jack Cowin – and largest shareholder - has assumed the role of executive chair to work with van Dyck and the executive team over the coming months.
Cowin told the market that van Dyck had made a valuable contribution to Domino's during a period of significant operational reset.
However, the market will want greater transparency into why he’s leaving.
Given that it can take months and often longer to replace a CEO, it’s reasonable to suggest that van Dyck’s plans to exit Domino’s top job were not his own.
Domino’s market cap is $1.8 billion; the share price is down 55% over one year and down 46% year to date.
The stock’s shares appear to be in a long-term bearish trend confirmed by multiple indicators.
Consensus is Hold.
Lake Resources up double-digits after completing FEED study on Kachi Project
Shares in Lake Resources (ASX: LKE) were trading over 10% higher at noon after the lithium developer told the market this morning it had completed the Front-End Engineering Design (FEED) study for its Kachi Lithium Brine Project in Argentina.
Marking a significant milestone in its infrastructure development, the study, conducted by YPF Luz, outlines the project’s electrical interconnection to the national grid, enhancing power availability and reliability, and supporting sustainable mining growth in the region.
This development aligns with a broader initiative by YPF Luz and Central Puerto S.A. to improve power infrastructure in Argentina’s Puna Region, potentially strengthening Lake’s position in the global lithium market.
Luz and Lake remain in dialogue regarding next steps following completion of the FEED.
Commenting on today’s update, Lake’s CEO David Dickson told the market that the completion of the FEED study is an important step forward for Lake and the Kachi Project and shows that grid power is a viable solution to meet the project’s power demands.
“The broader infrastructure initiative between YPF Luz and Central Puerto underscores the importance of bringing grid power to this region of Argentina to enable development of the country’s resources in remote areas for Argentina to secure itself as a global leader in lithium supply,” said Dickson.
To the uninitiated, Lake Resources utilises state-of-the-art ion exchange extraction technology to produce sustainable, high-purity lithium.
The company focuses on its flagship Kachi Project in Catamarca Province, Argentina, within the Lithium Triangle, addressing the demand for high-purity battery materials and sustainable, low-carbon footprint resources.
Recently revised resource estimates lifted Kachi’s total lithium carbonate equivalent (LCE) resource to just under 11.1 million tonnes, of which 8.2 million tonnes are now classified as measured and indicated.
Back in May, management told the market it was weighing up strategic options, including a partial or full sale of the asset - or even the company itself.
Lake Resources has a market cap of $52 million; the share price is down 21% in one year and up 7.4% in the last week.
The stock shares appear to be in a long-term bearish trend confirmed by multiple indicators.
Consensus does not cover this stock.
This article does not constitute financial or product advice. You should consider independent advice before making financial decisions.
