Re: PINS.N

[Danidu]

PEOPLES INSURANCE PLC
Company ID:- PINS
Date of Announcement:- 23.Feb.2017
Rate of Dividend:- Rs. 0.75 per share / Second Interim Dividend
Financial Year:- 2016
Shareholder Approval:- Not Required
XD:- 07.Mar.2017
Payment:- 16.Mar.2017

[slstockVeteran]

Did anyone remember what I said on PINS when it was below Rs 15

1)   On jan 25th 2016 when PINS around Rs 15 and BRAND NEW in Market said

"If someone is looking at share for dividends , I think PINS.N will give better dividend % than TJL."

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2) Again I gave hint on PINS  in the below thread if you read the comments.

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3) Present :

Today PINS is Rs 20.0  . If someone by chance bought PINS when I first said they will have big profit + dividends they already got.


4) I would think PINS would have done decently this quarter. ( Dec report still not out I think)


Now if there is any further big price increase ( from Rs 20)  I would not chase it too far, specially if it goes more than 10% ( from rs 20).  

The insurance sector looks good for the time being and for next quarter.
But ... there is but... I will not go into details


5)   I never had PINS  in my portfolio.

I said this for public benefit.

However PINS maybe a still good fundamental share as I indicated early at Rs 15.
Now for the future play by the fundamental values. It still gives a very good dividend yield. But short term once the run over there will be  a correction.


Btw there is another share I might talk about , before I get done here.

[nihal123Top contributor]

Thanks slstock

[yellow knifeTop contributor]

2017 Symbol of Strength

Walter Disney used to say its difficult to compare between one..

So we are comparing general sales of HASU and entire GWP of PINS as its only into General Insurance.

As stated in Chairman's message, the motor sector consist of 60% of the General Insurance. Since PINS is a subsidiary of PLC which purely in vehicle business, insurance has become a captive business..

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[yellow knifeTop contributor]

PINS has been maintaining a steady PAT where for HASU was not on a roller-coaster.

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[yellow knifeTop contributor]

Net Profit Margin was surprisingly going up. However a company can never continuously grow on this area.

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In CEO's message in page 33 of Annual Report , the reasons for Higher Net Profit Margins described.

" as opposed  to the heavy cost burden of maintain a dedicated branch network, PINS is using PLC premises. This strategy offers a significant cost advance over peers and consequently, PINS has one of the lowest expenses ratios in the industry.

[yellow knifeTop contributor]

Company was doing well for Dividend Hunters as well.

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[yellow knifeTop contributor]

Even though PINS looks good from many angles, following revelation of its own Annual Reports CEOs message, it shows PINS is not doing equally well as the rest of the Industry Players.

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When Non-Life Insurance Industry is growing steadily , PINS has outperformed the Industry only in 2016.

[yellow knifeTop contributor]

Sometimes qualitative factors matters. The Last heading of Chairman's message is Appreciations. He has mentioned that the CEO from the inception, Mr. D.P.Kumarage has retired from July 2017. Thus the era of Mr. Kumarage was marked with constant growth. He was the CEO of both PINS as well as PLC. Now both entities are managed by two different CEOs.

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[nihal123Top contributor]

Thanks YK

[spw19721Active Member]

Many thanks for the analysis YK. This will be a dividend cash cow someday huh?