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

Display results as :
 


Rechercher Advanced Search

Latest topics
» SAMP.N0000 (SAMPATH BANK PLC)
SRI LANKA FINANCE SECTOR - HOLD - Mar 2017 - FC Research EmptyToday at 6:58 pm by NIRMALSG

» Future of Tea Industry
SRI LANKA FINANCE SECTOR - HOLD - Mar 2017 - FC Research EmptyToday at 6:54 pm by hammurabi

» Dividend Announcement
SRI LANKA FINANCE SECTOR - HOLD - Mar 2017 - FC Research EmptyToday at 5:30 pm by Ethical Trader

» Cricket !
SRI LANKA FINANCE SECTOR - HOLD - Mar 2017 - FC Research EmptyToday at 2:22 pm by කිත්සිරි ද සිල්වා

» TPL.N0000 (TALAWAKALE PLANTATIONS )
SRI LANKA FINANCE SECTOR - HOLD - Mar 2017 - FC Research EmptyToday at 1:56 pm by yellow knife

» DIPD.N0000 (Dipped Products)
SRI LANKA FINANCE SECTOR - HOLD - Mar 2017 - FC Research EmptyToday at 11:40 am by Ethical Trader

» Access Engineering AEL Technical Analysis
SRI LANKA FINANCE SECTOR - HOLD - Mar 2017 - FC Research EmptyToday at 4:34 am by NIRMALSG

» DOCK.N0000 (COLOMBO DOCKYARD PLC)
SRI LANKA FINANCE SECTOR - HOLD - Mar 2017 - FC Research EmptyYesterday at 9:14 pm by hammurabi

» Thread for News on CSE and SL Economy
SRI LANKA FINANCE SECTOR - HOLD - Mar 2017 - FC Research EmptyYesterday at 8:52 pm by NIRMALSG

»  Rajgama heroes !
SRI LANKA FINANCE SECTOR - HOLD - Mar 2017 - FC Research EmptySat Jun 22, 2019 9:44 pm by spw19721

» මිල සූත්‍රය වැරදුණාද, වැරැද්දුවාද?
SRI LANKA FINANCE SECTOR - HOLD - Mar 2017 - FC Research EmptyFri Jun 21, 2019 5:25 pm by Ethical Trader

» First capital holdings
SRI LANKA FINANCE SECTOR - HOLD - Mar 2017 - FC Research EmptyThu Jun 20, 2019 5:57 pm by serene

» Happy Father's Day !
SRI LANKA FINANCE SECTOR - HOLD - Mar 2017 - FC Research EmptyMon Jun 17, 2019 8:58 pm by spw19721

» DPL.N0000 (Dankotuwa Porcelain PLC)
SRI LANKA FINANCE SECTOR - HOLD - Mar 2017 - FC Research EmptySun Jun 16, 2019 7:12 am by NIRMALSG

» Re: Financial reports Q1-2019
SRI LANKA FINANCE SECTOR - HOLD - Mar 2017 - FC Research EmptyFri Jun 14, 2019 8:57 pm by dhanurrox

» SEYB.N0000 ( SEYLAN BANK PLC )
SRI LANKA FINANCE SECTOR - HOLD - Mar 2017 - FC Research EmptyThu Jun 13, 2019 8:11 pm by ruwan326

» NTB.N0000 (NATIONS TRUST BANK PLC)
SRI LANKA FINANCE SECTOR - HOLD - Mar 2017 - FC Research EmptyThu Jun 13, 2019 8:08 pm by ruwan326

» PABC.N0000 (Pan Asia Banking Corporation PLC)
SRI LANKA FINANCE SECTOR - HOLD - Mar 2017 - FC Research EmptyThu Jun 13, 2019 8:06 pm by ruwan326

» NDB.N0000 (NATIONAL DEVELOPMENT BANK PLC)
SRI LANKA FINANCE SECTOR - HOLD - Mar 2017 - FC Research EmptyThu Jun 13, 2019 7:58 pm by ruwan326

» HNB.N0000 ( Hatton National Bank PLC)
SRI LANKA FINANCE SECTOR - HOLD - Mar 2017 - FC Research EmptyThu Jun 13, 2019 7:57 pm by ruwan326

» HDFC.N0000 (HOUSING DEVELOPMENT FINANCE CORPORATION BANK OF SRI LANKA)
SRI LANKA FINANCE SECTOR - HOLD - Mar 2017 - FC Research EmptyThu Jun 13, 2019 7:48 pm by ruwan326

» DFCC.N0000 ( DFCC BANK PLC )
SRI LANKA FINANCE SECTOR - HOLD - Mar 2017 - FC Research EmptyThu Jun 13, 2019 7:45 pm by ruwan326

» COMB.N0000 ( COMMERCIAL BANK OF CEYLON PLC )
SRI LANKA FINANCE SECTOR - HOLD - Mar 2017 - FC Research EmptyThu Jun 13, 2019 7:43 pm by ruwan326

» අනං මනං! #/+?.<>
SRI LANKA FINANCE SECTOR - HOLD - Mar 2017 - FC Research EmptyThu Jun 13, 2019 8:07 am by ruwan326

» Should CSE be like this? Whose FAULT is it?
SRI LANKA FINANCE SECTOR - HOLD - Mar 2017 - FC Research EmptyWed Jun 12, 2019 5:21 pm by Yin-Yang

» CCS.N0000 ( Ceylon Cold Stores)
SRI LANKA FINANCE SECTOR - HOLD - Mar 2017 - FC Research EmptyTue Jun 11, 2019 9:15 pm by ruwan326

» MCPL.N0000
SRI LANKA FINANCE SECTOR - HOLD - Mar 2017 - FC Research EmptySun Jun 09, 2019 12:15 pm by ruwan326

» Tourism sector
SRI LANKA FINANCE SECTOR - HOLD - Mar 2017 - FC Research EmptySun Jun 09, 2019 6:53 am by NIRMALSG

» LOFC Initiating Coverage - STRONG BUY - 29 03 17 - FC Research
SRI LANKA FINANCE SECTOR - HOLD - Mar 2017 - FC Research EmptyFri Jun 07, 2019 5:42 am by stockback

» Easter Sunday Attack and Sri Lanka
SRI LANKA FINANCE SECTOR - HOLD - Mar 2017 - FC Research EmptyThu Jun 06, 2019 9:13 am by ruwan326

» In the Meantime, Within Our Shores !
SRI LANKA FINANCE SECTOR - HOLD - Mar 2017 - FC Research EmptyMon Jun 03, 2019 2:14 pm by කිත්සිරි ද සිල්වා

» What to Analyse
SRI LANKA FINANCE SECTOR - HOLD - Mar 2017 - FC Research EmptySun Jun 02, 2019 7:11 am by Leon

» Tolerance at its Best !
SRI LANKA FINANCE SECTOR - HOLD - Mar 2017 - FC Research EmptyThu May 30, 2019 10:50 am by Yin-Yang

» විශ‍්‍රාම ගැන්වීමේ වයස් සීමාව ඉහළ දැමීමට මහ බැංකුවෙන් යෝජනාවක්
SRI LANKA FINANCE SECTOR - HOLD - Mar 2017 - FC Research EmptyTue May 28, 2019 8:03 am by කිත්සිරි ද සිල්වා

» සදහම් අටුවාව
SRI LANKA FINANCE SECTOR - HOLD - Mar 2017 - FC Research EmptyTue May 28, 2019 7:07 am by ruwan326

» බැරි වෙලා වත් අනික් පැත්ත උනොත්...?
SRI LANKA FINANCE SECTOR - HOLD - Mar 2017 - FC Research EmptyFri May 24, 2019 3:42 pm by smallville

» Sri Lanka at Cross Roads: Time to Learn, Unlearn and Relearn - Prof Rohan Gunaratna
SRI LANKA FINANCE SECTOR - HOLD - Mar 2017 - FC Research EmptyFri May 24, 2019 3:10 pm by puliyanam

» Songs to listen
SRI LANKA FINANCE SECTOR - HOLD - Mar 2017 - FC Research EmptyFri May 24, 2019 11:26 am by yellow knife

» Dhammika Perera non-committal on common candidate speculation
SRI LANKA FINANCE SECTOR - HOLD - Mar 2017 - FC Research EmptyThu May 23, 2019 2:54 pm by කිත්සිරි ද සිල්වා

» Films - To Watch List
SRI LANKA FINANCE SECTOR - HOLD - Mar 2017 - FC Research EmptyWed May 22, 2019 10:04 am by කිත්සිරි ද සිල්වා

» Japan, India in Deal at ‘Belt And Road’ Colombo Port: Nikkei
SRI LANKA FINANCE SECTOR - HOLD - Mar 2017 - FC Research EmptyTue May 21, 2019 2:06 pm by Ethical Trader

» Presidential poll between 15 Nov-7 Dec
SRI LANKA FINANCE SECTOR - HOLD - Mar 2017 - FC Research EmptyTue May 21, 2019 11:31 am by bjmd

» Flying is the Safest mode of Transport
SRI LANKA FINANCE SECTOR - HOLD - Mar 2017 - FC Research EmptyTue May 21, 2019 7:07 am by කිත්සිරි ද සිල්වා

» My Port Folio Bleeding But Its just the Begining Of..
SRI LANKA FINANCE SECTOR - HOLD - Mar 2017 - FC Research EmptySat May 18, 2019 7:40 pm by serene

» Sri Lanka mulls 25-pct ownership limit in finance companies
SRI LANKA FINANCE SECTOR - HOLD - Mar 2017 - FC Research EmptyFri May 17, 2019 3:40 pm by Backstage

» Searing Heat in China Is Causing Havoc for Rubber Makers
SRI LANKA FINANCE SECTOR - HOLD - Mar 2017 - FC Research EmptyFri May 17, 2019 2:43 pm by Backstage

» Israeli spyware breached WhatsApp security
SRI LANKA FINANCE SECTOR - HOLD - Mar 2017 - FC Research EmptyWed May 15, 2019 7:47 am by කිත්සිරි ද සිල්වා

» Is Burka prohibted ?
SRI LANKA FINANCE SECTOR - HOLD - Mar 2017 - FC Research EmptyWed May 15, 2019 7:30 am by කිත්සිරි ද සිල්වා

» Thread for General News Local/Foreign
SRI LANKA FINANCE SECTOR - HOLD - Mar 2017 - FC Research EmptyTue May 14, 2019 11:49 am by CK

» Fed Rate hike , Rs Devaluation PART 2 : Should CSE be like this? Whose FAULT is it?
SRI LANKA FINANCE SECTOR - HOLD - Mar 2017 - FC Research EmptyFri May 10, 2019 7:15 pm by Backstage

June 2019
SunMonTueWedThuFriSat
      1
2345678
9101112131415
16171819202122
23242526272829
30      

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