The Investor Sentiment - Equity and investments forum for Sri Lankans

Display results as :

Rechercher Advanced Search

Latest topics
» Dividend Announcement
Today at 10:06 pm by nihal123

Today at 7:48 pm by smallville

» රෝගීන් වෙනුවෙන් කැප වන සෞඛ්‍ය සේවාවක් වෙනුවෙන්.....
Today at 9:34 am by AjithR

Today at 9:22 am by කිත්සිරි ද සිල්වා

» අනං මනං! #/+?.<>
Today at 7:51 am by ruwan326

» How Small We are in the universe
Today at 7:29 am by nihal123

» Thread for News on CSE and SL Economy
Yesterday at 8:54 pm by nihal123

» ඉස්සරහට අපි පරදින එකනම් ෂුවර් – ධම්මික ක්‍රිකට් ගැන කතා කරයි
Fri Mar 15, 2019 2:59 pm by nuwanmja

» HAYL.N0000 Hayleys PLC
Thu Mar 14, 2019 2:46 pm by yellow knife

» Happy Birthday
Thu Mar 14, 2019 1:44 pm by Backstage

Thu Mar 14, 2019 10:57 am by slstock

» HNB.N0000 ( Hatton National Bank PLC)
Thu Mar 14, 2019 10:43 am by gTrade

Wed Mar 13, 2019 6:44 pm by serene

Mon Mar 11, 2019 10:52 am by yellow knife

Sun Mar 10, 2019 8:36 pm by NIRMALSG

Sun Mar 10, 2019 6:40 am by ruwan326

» Mobile Trading: the new BUZZ word in Capital Markets Industry!
Thu Mar 07, 2019 5:58 pm by Brenda John

» MGT.N0000
Sun Mar 03, 2019 2:48 pm by Hawk Eye

Sun Mar 03, 2019 8:57 am by Jana1

» Should such people be trusted and help anymore?
Sun Mar 03, 2019 4:42 am by pjrngroup

» The messenger who couldn't deliver a message
Wed Feb 27, 2019 5:56 pm by Backstage

» SHL.N0000 (Softlogic Holdings PLC)
Wed Feb 20, 2019 8:23 am by ruwan326

» Importance of 2019 government budget
Tue Feb 19, 2019 12:13 pm by කිත්සිරි ද සිල්වා

» Emir of Qatar on a private visit to Sri Lanka till February 22
Tue Feb 19, 2019 11:19 am by Backstage

» දේවදත්තගෙන් අපායේ සිට මෛත්‍රී බුදුන් වහන්සේට එවන ලද ලිපිය...~~~
Fri Feb 15, 2019 8:24 am by ruwan326

» CONN.N0000
Wed Feb 13, 2019 8:09 pm by ruwan326

» SERV - The Kingsbury
Wed Feb 13, 2019 8:08 pm by ruwan326

Wed Feb 13, 2019 7:53 pm by ruwan326

» KVAL.N0000
Wed Feb 13, 2019 7:36 pm by ruwan326

» HAYC - Haycarb
Wed Feb 13, 2019 7:24 pm by ruwan326

» DIPD.N0000 (Dipped Products)
Wed Feb 13, 2019 7:22 pm by ruwan326

» මහජනතාව බල ගැන්වෙම්න් සිටී…
Tue Feb 12, 2019 8:23 pm by ruwan326

» VFIN - where the journey leads it?
Mon Feb 11, 2019 7:35 pm by ruwan326

» PLC.N0000 ( People's Leasing and Fiance PLC)
Mon Feb 11, 2019 7:31 pm by ruwan326

» LFIN - LB Finance
Mon Feb 11, 2019 7:25 pm by ruwan326

» Sri Lanka urged to develop own narrative of China’s BRI
Mon Feb 11, 2019 2:50 pm by Backstage

» Wonder why men send photos of their genitals? Here are some theories
Mon Feb 11, 2019 11:01 am by Backstage

» Flying is the Safest mode of Transport
Sat Feb 09, 2019 8:12 am by කිත්සිරි ද සිල්වා

Thu Feb 07, 2019 2:24 pm by Ethical Trader

» Lanka named top tourist destination for 2016
Wed Feb 06, 2019 2:29 pm by කිත්සිරි ද සිල්වා

» A Bit of History
Wed Feb 06, 2019 2:18 pm by ruwan326

» AMF.N0000
Thu Jan 31, 2019 6:56 am by serene

» IOC Sri Lanka unit December quarter loss widens to Rs987mn
Mon Jan 28, 2019 11:02 am by ruwan326

» මූර්ත පොළියෙන් ශ්‍රී ලංකාව අංක 1ට – බ්ලූම්බර්ග් අනාවරණය කරයි
Mon Jan 21, 2019 7:18 pm by nihal123

» Obituary Notice.
Mon Jan 21, 2019 7:14 am by කිත්සිරි ද සිල්වා

» Trading Journal
Sun Jan 20, 2019 5:53 am by serene

» LDEV - Lankem Developments
Fri Jan 18, 2019 2:11 pm by ruwan326

» විශිෂ්ඨ සිල්ලර වෙළෙන්දෙකුගේ ජීවිත කතාව
Thu Jan 17, 2019 12:15 pm by Ethical Trader

» AAIC.N0000
Wed Jan 16, 2019 9:50 pm by serene

» இனிய பொங்கல்
Tue Jan 15, 2019 9:15 pm by nihal123

March 2019

Calendar Calendar


Information posted in this forum are entirely of the respective members' personal views. The views posted on this open online forum of contributors do not constitute a recommendation buy or sell. The site nor the connected parties will be responsible for the posts posted on the forum and will take best possible action to remove any unlawful or inappropriate posts.
All rights to articles of value authored by members posted on the forum belong to the respective authors. Re-using without the consent of the authors is prohibited. Due credit with links to original source should be given when quoting content from the forum.
This is an educational portal and not one that gives recommendations. Please obtain investment advises from a Registered Investment Advisor through a stock broker

PEOPLE’S LEASING (PLC.N)---Softlogic Equity Research

Go down

PEOPLE’S LEASING (PLC.N)---Softlogic Equity Research

Post by CSE.SAS on Fri Oct 30, 2015 11:52 am

Click the below link to download the Report of PEOPLE’S LEASING (PLC.N)---Softlogic Equity Research
[You must be registered and logged in to see this link.]

The Net Interest Income (NII) grew by 6% YoY to LKR2.7 bn in 2QFY16 on the back of low interest expenses during the period. Interest expenses declined by c.23% YoY to LKR1.9 bn in 2QFY16 and the conducive low interest environment and low deposit base aided the interest expenses to edge down. Meanwhile interest income denoted a dip of c.9% YoY to LKR4.6 bn in 2QFY16 on the back of lower interest income generated from lease & hire purchases. The sub sector which accounts to near 70% of the aggregate interest income reported a decline of c.16% YoY to LKR3.2 bn during 2QFY16.

Non-Interest Income reported a growth of 5% YoY to LKR1.1 bn in 2QFY16. Premium income dominated the non-interest income segment with a contribution of c.76% and recorded a growth of 12% YoY to LKR817.0 mn in 2QFY16.

Net earnings escalated by 14% YoY to LKR1.2 bn in 2QFY16 against LKR1.1 bn in 2QFY15 on the back of healthy NII and non-interest income. Meanwhile, NIM’s improved by 6 bps YoY to 8.9% in 2QFY16.

Cost to income ratio improved to 47% in 2QFY16 against 50% in 2QFY15 on the back of stringent cost strategies. Operating expenses recorded an increase of 5% YoY to LKR1.7 bn in 2QFY16 out of which insurance benefits & claims dominated the total operating expenditure (c.34% contribution) with a marginal growth of c.4% YoY.

Loan book grew by c.10% YoY and c.4% QoQ to LKR103.5 bn in 2QFY16. Lease and hire purchases accounted to the majority of the total assets with a contribution of c.65% whilst loans and Islamic finance compositely contributed to c.29%.

Deposit base edged down by 14% YoY and incline by 1% QoQ to LKR34.1 bn in 2QFY16 given the low interest environment. Deposits from customer accounted to the majority (c.39%) of the total funding base whilst borrowings and debt securities contributed near 30% and 31% in 2QFY16.

We maintain our profit forecast of LKR4,683.4 mn (up 14% YoY) for FY16E and LKR5,281.2 mn (up 12% YoY) for FY17E despite the new regulatory measures on personal motor vehicle leasing brought in by the regulator. The new developments negatively impacted the finance & leasing industry although the impact to PLC which is predominantly into commercial leasing business (c.70% of total leasing business) is minimum. The imposition of LTV ratio and 100% margin on Letter of Credit were mainly targeted to curb the vehicle importation (total motor vehicle registration has edge up by c.86% YoY to 423,481 units in the first eight months of 2015) and thereby to ease off the currency pressure and improve BOP position.

Being the market leader in the leasing industry PLC is poised to reap benefits from the conducive macro environment. Hence is expected to curb interest margin pressure from increasing leasing volumes through the revival of private sector mega construction projects to maintain the interest margins of c.8% in FY16-17E.

Further with a ROE of c.19% and a high dividend play with an estimated yield of 7-8% in FY16-17E offers good value trading at 7.3x FY16E net profit and 6.4x FY17E earnings whilst trading on 1.4x PBV. Further PLC trades at par to the finance sector PBV of 1.4x. The fundamentals of the company remain strong and we maintain BUY.


Posts : 263
Join date : 2014-02-23

Back to top Go down

Re: PEOPLE’S LEASING (PLC.N)---Softlogic Equity Research

Post by chutiputha on Sat Oct 31, 2015 9:30 am

Ah Sound is Cool
Top contributor
Top contributor

Posts : 1849
Join date : 2014-11-09
Age : 32
Location : Panadura

Back to top Go down

Back to top

Permissions in this forum:
You cannot reply to topics in this forum