Re: BLI.N0000 ( Bimputh Finance PLC )

[yellow knifeTop contributor]

I started to write about Malaysia to show this trend.

Daya Gamage is a real entrepreneur whom I respect and I respect him for his loyalty towards the chosen party.

In Malaysia such entrepreneurs were given all the benefits through banking system to boom themselves by investing in real estate , fiance, plantation, casino and shares.

In South Korea the entrepreneurs were forced to manufacture and to export.

Daya Gamage who started with manufacturing (textiles ) now find the complacent of finance field and surely will become mere Asset Trader by trading shares soon.

BLI results are impressive. But  share is overvalued.

[yellow knifeTop contributor]

2015/16

Performance of BLI has out performed many other Finance companies growth rate. It has recorded forever highest Revenue and PAT

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[yellow knifeTop contributor]

EPS has gone up in an accelerated manner during last two years..

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[yellow knifeTop contributor]

Company paid Rs 1.50 as dividend thanks to its EPS

[yellow knifeTop contributor]

PAT of PLC.N and BLI.N compared .

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[smallvilleTop contributor]

Thanks YK...

PLC n BLI are not good comparisons imo cuz PLC is the biggest leasing company... BLI's biggest business is microfinance..

How abt COCR, BLI?

[RanaTop contributor]

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[smallvilleTop contributor]

So the figures indicate BLI could not miraculously keep the profits goin up like last 2 years..

Double figures for personnel costs and 13 bagger increase in loss from financial instruments did the trich this time to bring the profits down to 420 mil from 514 mil for 9 months ended 2015.

Loans improved from 5.4 bil to 7.4 bil
Cash decreased from 430 mil to 214 mil
borrowings up too from 4.9 bil to 5.2 bil
so ultimately NAVPS - 15.31.. and its goin at 3.2X PBV

(I didnt check to see the EPS dilution due to sub division, but profits down anyways)

[yellow knifeTop contributor]

If the trend continues I would suspect the accounts.. but not now...
?

[yellow knifeTop contributor]

2017/18

No need to suspect the accounts as it reveals the difficulties faced by Micro Finance companies who target NINAs and NINJAS.. (No Income No Assets) (No Income No Job & Assets).

Company now targets asset backed loans like leasing and gold loans.

CEOs message ...
" Emphasis was also placed on diversifying our credit portfolio to achieve better risk-return dynamics. Accordingly, we sought growth in asset backed lending including leasing and gold loans during the year: The company's  leasing portfolio grew by 96% while gold loans increased to Rs 89.48 Mn from Rs 5.29 Mn the year before. Meanwhile we curtailed exposure to micro finance lending which resulted in the portfolio contraction by 23%.

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[yellow knifeTop contributor]

EPS has declined sharply during last financial year.

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[yellow knifeTop contributor]

Net Assets and Market Value

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[yellow knifeTop contributor]

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 by [You must be registered and logged in to see this link.] on Mon Oct 12, 2015 5:21 pm
One important feature of the company is its lowest NPL so far I've seen in fiance field.

Non Performing Advances (NPA) at reporting date amounted to Rs 28.4 Million or 0.92 per cent of the portfolio. The corresponding figures at previous year end were Rs 17.1 Million and 1.73% respectively. The NPA ratio of 0.92 is really a bench mark specially for a firm depending on Micro Fiance.

NPL is 6.33% in 2017/18 against 2.99% of previous year

[yellow knifeTop contributor]

BLI so far has been following good principles of Micro Finance.....

" With approximately 91% of our lending directed to females an average loan size of Rs 69950 and 93% of lending  outside Western Province."


Even though such principles are good , they become high risky...

[sereneTop contributor]

Thanks Yk.

[yellow knifeTop contributor]

Product Portfolio changing shape

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Despite recent efforts to diversify still the majority of the portfolio consist of risky NINJA type, female centered and out of western province loans.

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[yellow knifeTop contributor]

Shareholder composition.

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[Ethical TraderTop contributor]

Thanks YK. By the way what is NINJA loans.

[yellow knifeTop contributor]

No Income No Job & Asset Loans... Basically that's what real Micro Finance is targeting. If you really do micro finance you are dealing with high risky business.

[smallvilleTop contributor]

So YK, is it sustainable? Can BLI, COCR like companies enjoy the profits next 5 years?

I heard on news one finance company is in the fence of crisis, wondering whether it can be KANRICH? any news?

[yellow knifeTop contributor]

Suppose you are the CEO of a specific Finance company. You want to see quick jumps in revenue and profits like we saw in BLI. Now when the credit quality is poor they would come with same panacea.. We will concentrate more on recoveries than Revenue generating sales. The moment you do that it hit NPL again as NPL can be worsened by reducing Revenue.

Yet no company wants to see further worsening. Good strategists , CEOs would come up with very creative ideas.

When the economy is not booming, when GDP is far below 5%, some companies will thrive with their strategy while many other blame economy (state, government, party , Trump etc).

When the booming was shown in financials , shareholders flock to pick and price moves up and abandon when the signals are to down.

Shareholders would gain by identifying the Gems and Abandoning them no sooner the others are ready to pay higher for acquiring Gems.