The Investor Sentiment - Equity and investments forum for Sri Lankans
Search
 
 

Display results as :
 


Rechercher Advanced Search

Latest topics
» විශිෂ්ඨ සිල්ලර වෙළෙන්දෙකුගේ ජීවිත කතාව
Today at 13:45 by Ethical Trader

» Flying is the Safest mode of Transport
Today at 8:07 by කිත්සිරි ද සිල්වා

» AAIC.N0000
Yesterday at 23:20 by serene

» අනං මනං! #/+?.<>
Yesterday at 22:10 by ruwan326

» Thread for News on CSE and SL Economy
Yesterday at 21:56 by ruwan326

» MTD WALKERS - KAPI
Yesterday at 18:48 by PANTOMATH

» REXP.N0000 ( RICHARD PIERIS EXPORTS PLC)
Yesterday at 13:21 by yellow knife

» AMF.N0000
Yesterday at 12:53 by serene

» இனிய பொங்கல்
Tue 15 Jan 2019 - 22:45 by nihal123

» DIPD.N0000 (Dipped Products)
Tue 15 Jan 2019 - 21:48 by PANTOMATH

» HUNA.N0000
Mon 14 Jan 2019 - 18:59 by Ethical Trader

» Blessing in Disguise!! It's high time Brothers!!
Sun 13 Jan 2019 - 13:05 by serene

» Thread for News on Local and Foreign Politics
Sat 12 Jan 2019 - 9:56 by ruwan326

» LLUB.N0000 (CHEVRON LUBRICANTS LANKA PLC)
Thu 10 Jan 2019 - 22:15 by PANTOMATH

» කෝටි 4620 ක බැඳුම්කර නීතියට පිටින් ශ‍්‍රී ලංකන්ට දීලා
Mon 7 Jan 2019 - 19:48 by Ethical Trader

» JINS.N0000 ( Janashakthi Insurance PLC)
Sun 6 Jan 2019 - 14:42 by smallville

» Dividend Announcement
Sun 6 Jan 2019 - 5:58 by serene

» Thread for News on International Markets
Fri 4 Jan 2019 - 11:10 by The Invisible

» LDEV - Lankem Developments
Tue 1 Jan 2019 - 21:44 by ruwan326

» අවුරුද්ද අප කයි - අපි අවුරද්ද කමු (ජනවාරි පළමුවැනිදා)
Tue 1 Jan 2019 - 19:53 by malanp

» සැන්ඩි එපා!
Tue 1 Jan 2019 - 19:31 by serene

» අසිරිමත් සුබ නව වසරකට ආසිරි !
Tue 1 Jan 2019 - 18:38 by PANTOMATH

» SHL.N0000 (Softlogic Holdings PLC)
Mon 31 Dec 2018 - 19:34 by EBHRAHIMCANADA

»  වසරක කාලය තුළ ඉන්දියාවේ ඉහළම ආදායම් ලාභීන්
Mon 31 Dec 2018 - 4:17 by nihal123

» අයදුමේ දී ඡායාරූප ‘ඇලවීම‘ අවශ්‍ය නැති ජාතික හැඳුනුම්පත ජනවාරි 01 සිට දිවයිනටම
Sun 30 Dec 2018 - 23:07 by lanka

» මැදපෙරදිගට පමණක්‘ පාස්පෝට් මින් ඉදිරියට නැහැ
Thu 27 Dec 2018 - 18:48 by Ethical Trader

» BFN - Orient Finance
Wed 26 Dec 2018 - 20:23 by serene

» Wishing Everyone a Happy Christmas !
Wed 26 Dec 2018 - 8:57 by spw19721

» Happy Birthday
Tue 25 Dec 2018 - 12:43 by sashimaal

» Trading Journal
Sat 22 Dec 2018 - 12:41 by PANTOMATH

» COMB.N0000 ( COMMERCIAL BANK OF CEYLON PLC )
Fri 21 Dec 2018 - 11:11 by The Invisible

» In the Meantime, Within Our Shores !
Thu 20 Dec 2018 - 11:14 by කිත්සිරි ද සිල්වා

» Buy International English Language Testing System (IELTS) in jordan((WhatsApp:+237675967490))
Mon 17 Dec 2018 - 12:25 by nihal123

» AINS - Arpico Insurance
Thu 13 Dec 2018 - 12:13 by The Invisible

» CFVF - First Capital
Thu 13 Dec 2018 - 6:48 by Ethical Trader

» Obituary Notice.
Wed 12 Dec 2018 - 12:48 by sashimaal

» බඩගිනී
Tue 11 Dec 2018 - 10:50 by Ethical Trader

»  Rajgama heroes !
Sun 9 Dec 2018 - 11:13 by කිත්සිරි ද සිල්වා

» BOPL.N0000 (Bogawantalawa Tea Estates PLC)
Fri 7 Dec 2018 - 9:05 by The Invisible

» Sri Lanka economic slowdown trims company profits, bank earnings grow
Thu 6 Dec 2018 - 16:34 by nihal123

» Better Than Bitcoin
Thu 6 Dec 2018 - 11:12 by කිත්සිරි ද සිල්වා

» Hutchison, Etisalat complete mobile networks merger in Sri Lanka
Wed 5 Dec 2018 - 11:00 by The Invisible

» Oil prices surge more than 5-pct
Mon 3 Dec 2018 - 15:23 by Ethical Trader

» CCS.N0000 ( Ceylon Cold Stores)
Mon 3 Dec 2018 - 11:33 by The Invisible

» HAYC - Haycarb
Sun 2 Dec 2018 - 16:34 by xmart

» LGL Laugfs Gas
Fri 30 Nov 2018 - 11:13 by The Invisible

» Oil prices gain as investors eye Fed relief on interest rates
Fri 30 Nov 2018 - 11:11 by The Invisible

» ලැයිස්තුගත සමාගම් 8 ක් කොටස් ගනුදෙනු තහනම් වීමේ අවදානමක
Thu 29 Nov 2018 - 13:04 by nihal123

» අපි තනිකර ලෝකය දිව යන්නේ
Thu 29 Nov 2018 - 13:02 by කිත්සිරි ද සිල්වා

» NDB.N0000 (NATIONAL DEVELOPMENT BANK PLC)
Thu 29 Nov 2018 - 12:02 by The Invisible

January 2019
SunMonTueWedThuFriSat
  12345
6789101112
13141516171819
20212223242526
2728293031  

Calendar Calendar

Disclaimer


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

CFIN Corporate Update - STRONG BUY - 31 03 17 - FC Research

Go down

CFIN Corporate Update - STRONG BUY - 31 03 17 - FC Research

Post by CSE.SAS on Tue 18 Apr 2017 - 23:43

CENTRAL FINANCE COMPANY PLC

Corporate Update - STRONG BUY

Current Price: LKR 87.0 Fair Value: LKR 107.0

“Strong Performance Sustained”

[You must be registered and logged in to see this link.]

Central Finance Company PLC (CFIN) is the 3rd largest Non-Bank Finance Company based on Market Capitalization having a total asset base of LKR 78Bn. The company has the highest credit rating among privately-owned finance companies, an A+ with a stable outlook assigned by Fitch Ratings. We initiate coverage on CFIN at a time when the share is trading at an attractive discount to its fair value giving an annualized return of 26%. STRONG BUY.

Portfolio growth sustained at a CAGR of 10% FY16-19E: CFIN’s portfolio is expected to record a growth at a CAGR of 10% (FY13-16 CAGR: 12%) driven by the increasing GDP per capita and sustained private sector credit growth. IMF forecasts private sector credit growth to continue at 14%-15% levels between 2017E-2020E. The effects of slowing down new vehicle registrations due to increased duties is expected to be partially offset by the growth in second hand vehicle market and the increasing loans and advances to SME, construction, transportation and services sectors.

Lower impairments and low cost funding enhances bottom line: CFIN is benefitted by rising vehicle prices that prompt customers to make timely payments and secure their loans, leading to lower impairments. In addition, the company enjoys the healthy credit rating of A+ with a Stable Outlook by Fitch Ratings, enabling it to access low cost funding. Moving from leases to loans further enables CFIN to re-price the loans in a rising interest rate environment. These factors support and enhance the bottom-line growth.

CFIN to provide an annualized return of 26% by FY18E: FC Research estimates CFIN’s fair value at LKR 107.0 (Justified PBV based LKR 125.0, PER based LKR 138.0, Residual income based LKR 95.0 and applied an illiquidity discount of 10% for lower trading volumes) giving a total return of 26% (capital gain of 23% and dividend yield of 3%) in FY18E. FC Research further estimates CFIN’s fair value at LKR 120.0 in FY19E.

Investment risks: Interest rate risk, regulatory and government policy-related risk, credit risk and liquidity risk are key risks CFIN faces.

Disclosure on Shareholding:

Neither First Capital Group nor its affiliates have traded in the shares of CFIN in the three trading days prior to this document, and will not trade in the shares of CFIN for three trading days following the issue of this document.

Discount for liquidity:

The fair value of CFIN has been adjusted 10% downwards to reflect the lower trading volumes of the share compared to the average trading volume of the market.

CSE.SAS

Posts : 263
Join date : 2014-02-24

Back to top Go down

Back to top


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