VFIN - where the journey leads it?

GroundedKestrel wrote:Still dropping.....

Future123 wrote:

Does this 70% rule apply to banks as well?

Future123 wrote:FG, what's your idea for medium term? What are the steps that finance companies should take to mitigate this loss of income? Eg: property mortgage, business loans and grameen loans

Does this 70% rule apply to banks as well?

Future123 wrote:A new product from VFIN called Auto Draft.

http://www.vallibelfinance.com/?p=345

We need more innovation and diversification like this to go forward.

GroundedKestrel wrote:It's interesting to see the dynamic between the two of you when it comes to VFIN. Future is optimistic whilst FG is pessimistic. The both of you have held the same beliefs even when the company was doing good or bad. Interesting to see who will come out on top in the long term.

Future123 wrote:Director buying again. VFIN must have made good profit. This is one of the fastest growing companies at CSE.

http://cse.lk/cmt/upload_cse_announcements/3991444821260_.pdf

First Guy wrote:

Future123 wrote:Director buying again. VFIN must have made good profit. This is one of the fastest growing companies at CSE.

http://cse.lk/cmt/upload_cse_announcements/3991444821260_.pdf

1. Sure it must have made a good profit due to recent heavy vehicle imports and existing leases

2. Fasted growing? - I disagree. In fact, I have shown a chart depicting its growth somewhere in this thread.

Profit will be 'good' for some quarters, but without many new leases compared to previous periods, it will not be an easy task to grow unless new areas of business is entered.

First Guy wrote:Look at the results closely.

Net interest income has risen past 400 mil for the first time, BUT expenses have increased more. Profit before impairment is flat. Look at the difference in impairment (good or bad you decide). There 'could' be a larger charge next quarter.

So what is the real profit growth?

As usual, this is not a demotion. Just presenting facts and being cautious from being 'over' optimistic.

Future123 wrote:

First Guy wrote:Look at the results closely.

Net interest income has risen past 400 mil for the first time, BUT expenses have increased more. Profit before impairment is flat. Look at the difference in impairment (good or bad you decide). There 'could' be a larger charge next quarter.

So what is the real profit growth?

As usual, this is not a demotion. Just presenting facts and being cautious from being 'over' optimistic.

NIM increased by 10% which is nearly 40 million. The PAT increased by 40% which is 33%. There is other operating income of 30 million. Impairment significantly dropped contributing to higher PAT.

Other expenses have gone up by 35 million. We must keep in mind that VFIN has opened nearly 5 branches this year. They had only 20 branches before and now around 25 branches. It's obvious that its expenses would go up immediately and the revenue would follow in following quarters.
Eg: when they report 150 million quarterly PAT then EPS would be 3.6. Annualized would be 3.6 * 4 = 14.4. At that time it's likely to trade around 115/= if we assume 8 times of EPS.

For me this is a medium term counter and one must be willing to hold this for at least 2 years to ripe the real benefit.

Jana1 wrote:

Future123 wrote:

First Guy wrote:Look at the results closely.

Net interest income has risen past 400 mil for the first time, BUT expenses have increased more. Profit before impairment is flat. Look at the difference in impairment (good or bad you decide). There 'could' be a larger charge next quarter.

So what is the real profit growth?

As usual, this is not a demotion. Just presenting facts and being cautious from being 'over' optimistic.

NIM increased by 10% which is nearly 40 million. The PAT increased by 40% which is 33%. There is other operating income of 30 million. Impairment significantly dropped contributing to higher PAT.

Other expenses have gone up by 35 million. We must keep in mind that VFIN has opened nearly 5 branches this year. They had only 20 branches before and now around 25 branches. It's obvious that its expenses would go up immediately and the revenue would follow in following quarters.
Eg: when they report 150 million quarterly PAT then EPS would be 3.6. Annualized would be 3.6 * 4 = 14.4. At that time it's likely to trade around 115/= if we assume 8 times of EPS.

For me this is a medium term counter and one must be willing to hold this for at least 2 years to ripe the real benefit.

Having difficulty in picking your annualized EPS. Themselves have already produced on the report as Rs 11 of annualised EPS, then how can you multiply by 4 and get 2018 annualised EPS? Is it the first time  r u analysing the IS? or blind biased decision because of holding?....