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

Display results as :
 


Rechercher Advanced Search

Latest topics
» අනං මනං! #/+?.<>
SRI LANKA FINANCE SECTOR - HOLD - Mar 2017 - FC Research EmptyYesterday at 8:18 pm by ruwan326

» Dividend Announcement
SRI LANKA FINANCE SECTOR - HOLD - Mar 2017 - FC Research EmptyYesterday at 6:04 pm by Ethical Trader

» Browns Investments update
SRI LANKA FINANCE SECTOR - HOLD - Mar 2017 - FC Research EmptyYesterday at 1:46 pm by The Invisible

» What Would You Do?
SRI LANKA FINANCE SECTOR - HOLD - Mar 2017 - FC Research EmptyMon Aug 19, 2019 1:02 pm by කිත්සිරි ද සිල්වා

» Back of the Legends
SRI LANKA FINANCE SECTOR - HOLD - Mar 2017 - FC Research EmptyMon Aug 19, 2019 10:13 am by Topcat

» Thread for News on Local and Foreign Politics
SRI LANKA FINANCE SECTOR - HOLD - Mar 2017 - FC Research EmptyMon Aug 19, 2019 6:32 am by ruwan326

» NTB.N0000 (NATIONS TRUST BANK PLC)
SRI LANKA FINANCE SECTOR - HOLD - Mar 2017 - FC Research EmptySun Aug 18, 2019 10:33 pm by lanka

» Melstacorp (MELS)
SRI LANKA FINANCE SECTOR - HOLD - Mar 2017 - FC Research EmptySun Aug 18, 2019 8:33 pm by The Invisible

» Cargills (CARG)
SRI LANKA FINANCE SECTOR - HOLD - Mar 2017 - FC Research EmptySun Aug 18, 2019 8:26 pm by The Invisible

» DOCK.N0000 (COLOMBO DOCKYARD PLC)
SRI LANKA FINANCE SECTOR - HOLD - Mar 2017 - FC Research EmptySun Aug 18, 2019 8:18 pm by The Invisible

» SHL.N0000 (Softlogic Holdings PLC)
SRI LANKA FINANCE SECTOR - HOLD - Mar 2017 - FC Research EmptySun Aug 18, 2019 8:14 pm by The Invisible

» SAMP.N0000 (SAMPATH BANK PLC)
SRI LANKA FINANCE SECTOR - HOLD - Mar 2017 - FC Research EmptySat Aug 17, 2019 12:44 pm by nuwanmja

» Hayleys MGT
SRI LANKA FINANCE SECTOR - HOLD - Mar 2017 - FC Research EmptyFri Aug 16, 2019 8:55 pm by ruwan326

» CFVF - First Capital
SRI LANKA FINANCE SECTOR - HOLD - Mar 2017 - FC Research EmptyFri Aug 16, 2019 9:58 am by CK

» JINS.N0000 ( Janashakthi Insurance PLC)
SRI LANKA FINANCE SECTOR - HOLD - Mar 2017 - FC Research EmptyWed Aug 14, 2019 4:57 pm by The Invisible

» Thread for News on CSE and SL Economy
SRI LANKA FINANCE SECTOR - HOLD - Mar 2017 - FC Research EmptyWed Aug 14, 2019 9:22 am by The Invisible

» Ceylinco Insurance CINS
SRI LANKA FINANCE SECTOR - HOLD - Mar 2017 - FC Research EmptyWed Aug 14, 2019 9:18 am by The Invisible

» HNB.N0000 ( Hatton National Bank PLC)
SRI LANKA FINANCE SECTOR - HOLD - Mar 2017 - FC Research EmptyWed Aug 14, 2019 9:15 am by The Invisible

» NDB.N0000 (NATIONAL DEVELOPMENT BANK PLC)
SRI LANKA FINANCE SECTOR - HOLD - Mar 2017 - FC Research EmptyWed Aug 14, 2019 9:11 am by The Invisible

» Tourism Sector
SRI LANKA FINANCE SECTOR - HOLD - Mar 2017 - FC Research EmptyWed Aug 14, 2019 4:55 am by NIRMALSG

» LIOC.N0000 (Lanka IOC PLC)
SRI LANKA FINANCE SECTOR - HOLD - Mar 2017 - FC Research EmptyMon Aug 12, 2019 2:55 pm by xmart

» HAYL.N0000 Hayleys PLC
SRI LANKA FINANCE SECTOR - HOLD - Mar 2017 - FC Research EmptyMon Aug 12, 2019 1:43 pm by CK

» PABC.N0000 (Pan Asia Banking Corporation PLC)
SRI LANKA FINANCE SECTOR - HOLD - Mar 2017 - FC Research EmptyMon Aug 12, 2019 1:33 pm by The Invisible

» Grain Elevators
SRI LANKA FINANCE SECTOR - HOLD - Mar 2017 - FC Research EmptyMon Aug 12, 2019 1:31 pm by The Invisible

» Sri Lanka sets US$3.5bn tea export target for 2030
SRI LANKA FINANCE SECTOR - HOLD - Mar 2017 - FC Research EmptyMon Aug 12, 2019 1:27 pm by The Invisible

» Tea: July 2019 national average shows gains month on month
SRI LANKA FINANCE SECTOR - HOLD - Mar 2017 - FC Research EmptySun Aug 11, 2019 9:19 pm by Topcat

» OSEA .N
SRI LANKA FINANCE SECTOR - HOLD - Mar 2017 - FC Research EmptySat Aug 10, 2019 6:40 pm by The Invisible

» Sri Lanka mulls reforms to punish 'errant' plantation companies
SRI LANKA FINANCE SECTOR - HOLD - Mar 2017 - FC Research EmptySat Aug 10, 2019 6:33 pm by The Invisible

» JKH.N0000
SRI LANKA FINANCE SECTOR - HOLD - Mar 2017 - FC Research EmptySat Aug 10, 2019 11:38 am by The Invisible

» HHL.N0000 ( Hemas Holdings PLC)
SRI LANKA FINANCE SECTOR - HOLD - Mar 2017 - FC Research EmptySat Aug 10, 2019 10:42 am by The Invisible

» Nestle NEST
SRI LANKA FINANCE SECTOR - HOLD - Mar 2017 - FC Research EmptySat Aug 10, 2019 10:28 am by The Invisible

» Ceylon Tobacco CTC
SRI LANKA FINANCE SECTOR - HOLD - Mar 2017 - FC Research EmptySat Aug 10, 2019 10:26 am by The Invisible

» Volkswagen කතාවේ ඇත්ත තත්ත්වය මෙහෙමයි.
SRI LANKA FINANCE SECTOR - HOLD - Mar 2017 - FC Research EmptyFri Aug 09, 2019 5:37 pm by කිත්සිරි ද සිල්වා

» LLUB.N0000 (CHEVRON LUBRICANTS LANKA PLC)
SRI LANKA FINANCE SECTOR - HOLD - Mar 2017 - FC Research EmptyFri Aug 09, 2019 5:07 pm by Ethical Trader

» VFIN - where the journey leads it?
SRI LANKA FINANCE SECTOR - HOLD - Mar 2017 - FC Research EmptyFri Aug 09, 2019 9:21 am by ruwan326

» UAL.N0000 ( UNION ASSURANCE PLC )
SRI LANKA FINANCE SECTOR - HOLD - Mar 2017 - FC Research EmptyFri Aug 09, 2019 9:20 am by ruwan326

» SPEN.N0000
SRI LANKA FINANCE SECTOR - HOLD - Mar 2017 - FC Research EmptyThu Aug 08, 2019 10:20 pm by The Invisible

» Lanka Tiles
SRI LANKA FINANCE SECTOR - HOLD - Mar 2017 - FC Research EmptyThu Aug 08, 2019 10:15 pm by The Invisible

» Expolanka
SRI LANKA FINANCE SECTOR - HOLD - Mar 2017 - FC Research EmptyThu Aug 08, 2019 8:28 pm by ruwan326

» Tile - Snapshot
SRI LANKA FINANCE SECTOR - HOLD - Mar 2017 - FC Research EmptyThu Aug 08, 2019 11:37 am by mymoney

» DPL.N0000 (Dankotuwa Porcelain PLC)
SRI LANKA FINANCE SECTOR - HOLD - Mar 2017 - FC Research EmptyThu Aug 08, 2019 11:31 am by mymoney

» නිරුවත
SRI LANKA FINANCE SECTOR - HOLD - Mar 2017 - FC Research EmptyThu Aug 08, 2019 9:36 am by කිත්සිරි ද සිල්වා

» HAYC - Haycarb
SRI LANKA FINANCE SECTOR - HOLD - Mar 2017 - FC Research EmptyThu Aug 08, 2019 7:32 am by Beta

» WATA - Watawala
SRI LANKA FINANCE SECTOR - HOLD - Mar 2017 - FC Research EmptyWed Aug 07, 2019 12:03 pm by lanka

» Chemanex
SRI LANKA FINANCE SECTOR - HOLD - Mar 2017 - FC Research EmptyWed Aug 07, 2019 6:40 am by The Invisible

» East West properties
SRI LANKA FINANCE SECTOR - HOLD - Mar 2017 - FC Research EmptyTue Aug 06, 2019 8:17 am by slstock

» CSE Market Wrap - 02.08.2019
SRI LANKA FINANCE SECTOR - HOLD - Mar 2017 - FC Research EmptyTue Aug 06, 2019 6:59 am by pjrngroup

» Kandy Hotels
SRI LANKA FINANCE SECTOR - HOLD - Mar 2017 - FC Research EmptyTue Aug 06, 2019 6:55 am by pjrngroup

» GLAS.N0000 (PIRAMAL GLASS CEYLON PLC)
SRI LANKA FINANCE SECTOR - HOLD - Mar 2017 - FC Research EmptyMon Aug 05, 2019 10:07 pm by The Invisible

» 1000 Post Club | Celebration of a Great Milestone
SRI LANKA FINANCE SECTOR - HOLD - Mar 2017 - FC Research EmptyMon Aug 05, 2019 6:25 pm by pathfinder

August 2019
SunMonTueWedThuFriSat
    123
45678910
11121314151617
18192021222324
25262728293031

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

SRI LANKA FINANCE SECTOR - HOLD - Mar 2017 - FC Research

Go down

SRI LANKA FINANCE SECTOR - HOLD - Mar 2017 - FC Research Empty SRI LANKA FINANCE SECTOR - HOLD - Mar 2017 - FC Research

Post by CSE.SAS on Tue Apr 11, 2017 7:18 pm

FC Research expects finance sector to face moderately tough conditions to operate with thinning margins and new LTV regulations leading to slower and previous but moderate credit growth. Despite slow economic conditions rise in NPLs are likely to be slow amidst price appreciation in vehicle prices as bulk of the lending is attached to vehicles. We believe the larger finance companies have an advantage with lower cost of funding and large conversion levels from leases to loans which improves re-pricing abilities at times of rising interest rates. Sector Recommendation: HOLD

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

Margins to dip but Credit Growth to remain moderate: With rising interest rates and bulk of the lending attached to leases finance sector is likely to experience a dip in margins while credit growth is expected to remain moderate around 16-18% despite deceleration from 2016. New LTV regulations also likely support the slower credit in 2017E.

Upbeat second-hand market vehicle prices to support Lower NPL provisions: Despite rise interest rates and slower economic conditions FC Research expects NPL provisions of finance companies to continue to stay on the back significant price appreciations in the second hand vehicle market. Higher vehicle prices are likely to deter related borrowers from default while even if defaulted higher vehicles prices ensures finance companies of eliminating losses and recovering bad debts.

Selected larger finance companies to perform: Finance companies with better rating and larger asset base tend to have a lower cost of funding while some finance companies have already converted significant portions from loans to leases enabling them to re-price part of the assets in line with interest rates. These two conditions being satisfied enables selected finance companies specifically identified as PLC, CFIN, LFIN, COCR and LOFC to perform better in tough environment. We expect the selected companies to provide an average total return on equal weightage of c.51% during a 12 month period.

*Disclosure:

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

CSE.SAS

Posts : 263
Join date : 2014-02-23

Back to top Go down

Back to top


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