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

Display results as :
 


Rechercher Advanced Search

Latest topics
» Dividend Announcement
CFIN Corporate Update - STRONG BUY - 31 03 17 - FC Research EmptyToday at 7:49 pm by nihal123

» TPL.N0000 (TALAWAKALE PLANTATIONS )
CFIN Corporate Update - STRONG BUY - 31 03 17 - FC Research EmptyToday at 2:22 pm by nuwanmja

» Life After Google
CFIN Corporate Update - STRONG BUY - 31 03 17 - FC Research EmptyYesterday at 5:28 pm by කිත්සිරි ද සිල්වා

» S&P ශ්‍රී ලංකා 20 දර්ශකයේ වෙනසක්. CTC, NTB, රිචඩ් පීරිස් සහ ටෝක්යෝ සිමෙන්ති ඉවතට
CFIN Corporate Update - STRONG BUY - 31 03 17 - FC Research EmptyYesterday at 6:37 am by nihal123

» SAMP.N0000 (SAMPATH BANK PLC)
CFIN Corporate Update - STRONG BUY - 31 03 17 - FC Research EmptyMon Jun 24, 2019 11:09 pm by hariesha

» Future of Tea Industry
CFIN Corporate Update - STRONG BUY - 31 03 17 - FC Research EmptyMon Jun 24, 2019 6:54 pm by hammurabi

» Cricket !
CFIN Corporate Update - STRONG BUY - 31 03 17 - FC Research EmptyMon Jun 24, 2019 2:22 pm by කිත්සිරි ද සිල්වා

» DIPD.N0000 (Dipped Products)
CFIN Corporate Update - STRONG BUY - 31 03 17 - FC Research EmptyMon Jun 24, 2019 11:40 am by Ethical Trader

» Access Engineering AEL Technical Analysis
CFIN Corporate Update - STRONG BUY - 31 03 17 - FC Research EmptyMon Jun 24, 2019 4:34 am by NIRMALSG

» DOCK.N0000 (COLOMBO DOCKYARD PLC)
CFIN Corporate Update - STRONG BUY - 31 03 17 - FC Research EmptySun Jun 23, 2019 9:14 pm by hammurabi

» Thread for News on CSE and SL Economy
CFIN Corporate Update - STRONG BUY - 31 03 17 - FC Research EmptySun Jun 23, 2019 8:52 pm by NIRMALSG

»  Rajgama heroes !
CFIN Corporate Update - STRONG BUY - 31 03 17 - FC Research EmptySat Jun 22, 2019 9:44 pm by spw19721

» මිල සූත්‍රය වැරදුණාද, වැරැද්දුවාද?
CFIN Corporate Update - STRONG BUY - 31 03 17 - FC Research EmptyFri Jun 21, 2019 5:25 pm by Ethical Trader

» First capital holdings
CFIN Corporate Update - STRONG BUY - 31 03 17 - FC Research EmptyThu Jun 20, 2019 5:57 pm by serene

» Happy Father's Day !
CFIN Corporate Update - STRONG BUY - 31 03 17 - FC Research EmptyMon Jun 17, 2019 8:58 pm by spw19721

» DPL.N0000 (Dankotuwa Porcelain PLC)
CFIN Corporate Update - STRONG BUY - 31 03 17 - FC Research EmptySun Jun 16, 2019 7:12 am by NIRMALSG

» Re: Financial reports Q1-2019
CFIN Corporate Update - STRONG BUY - 31 03 17 - FC Research EmptyFri Jun 14, 2019 8:57 pm by dhanurrox

» SEYB.N0000 ( SEYLAN BANK PLC )
CFIN Corporate Update - STRONG BUY - 31 03 17 - FC Research EmptyThu Jun 13, 2019 8:11 pm by ruwan326

» NTB.N0000 (NATIONS TRUST BANK PLC)
CFIN Corporate Update - STRONG BUY - 31 03 17 - FC Research EmptyThu Jun 13, 2019 8:08 pm by ruwan326

» PABC.N0000 (Pan Asia Banking Corporation PLC)
CFIN Corporate Update - STRONG BUY - 31 03 17 - FC Research EmptyThu Jun 13, 2019 8:06 pm by ruwan326

» NDB.N0000 (NATIONAL DEVELOPMENT BANK PLC)
CFIN Corporate Update - STRONG BUY - 31 03 17 - FC Research EmptyThu Jun 13, 2019 7:58 pm by ruwan326

» HNB.N0000 ( Hatton National Bank PLC)
CFIN Corporate Update - STRONG BUY - 31 03 17 - FC Research EmptyThu Jun 13, 2019 7:57 pm by ruwan326

» HDFC.N0000 (HOUSING DEVELOPMENT FINANCE CORPORATION BANK OF SRI LANKA)
CFIN Corporate Update - STRONG BUY - 31 03 17 - FC Research EmptyThu Jun 13, 2019 7:48 pm by ruwan326

» DFCC.N0000 ( DFCC BANK PLC )
CFIN Corporate Update - STRONG BUY - 31 03 17 - FC Research EmptyThu Jun 13, 2019 7:45 pm by ruwan326

» COMB.N0000 ( COMMERCIAL BANK OF CEYLON PLC )
CFIN Corporate Update - STRONG BUY - 31 03 17 - FC Research EmptyThu Jun 13, 2019 7:43 pm by ruwan326

» අනං මනං! #/+?.<>
CFIN Corporate Update - STRONG BUY - 31 03 17 - FC Research EmptyThu Jun 13, 2019 8:07 am by ruwan326

» Should CSE be like this? Whose FAULT is it?
CFIN Corporate Update - STRONG BUY - 31 03 17 - FC Research EmptyWed Jun 12, 2019 5:21 pm by Yin-Yang

» CCS.N0000 ( Ceylon Cold Stores)
CFIN Corporate Update - STRONG BUY - 31 03 17 - FC Research EmptyTue Jun 11, 2019 9:15 pm by ruwan326

» MCPL.N0000
CFIN Corporate Update - STRONG BUY - 31 03 17 - FC Research EmptySun Jun 09, 2019 12:15 pm by ruwan326

» Tourism sector
CFIN Corporate Update - STRONG BUY - 31 03 17 - FC Research EmptySun Jun 09, 2019 6:53 am by NIRMALSG

» LOFC Initiating Coverage - STRONG BUY - 29 03 17 - FC Research
CFIN Corporate Update - STRONG BUY - 31 03 17 - FC Research EmptyFri Jun 07, 2019 5:42 am by stockback

» Easter Sunday Attack and Sri Lanka
CFIN Corporate Update - STRONG BUY - 31 03 17 - FC Research EmptyThu Jun 06, 2019 9:13 am by ruwan326

» In the Meantime, Within Our Shores !
CFIN Corporate Update - STRONG BUY - 31 03 17 - FC Research EmptyMon Jun 03, 2019 2:14 pm by කිත්සිරි ද සිල්වා

» What to Analyse
CFIN Corporate Update - STRONG BUY - 31 03 17 - FC Research EmptySun Jun 02, 2019 7:11 am by Leon

» Tolerance at its Best !
CFIN Corporate Update - STRONG BUY - 31 03 17 - FC Research EmptyThu May 30, 2019 10:50 am by Yin-Yang

» විශ‍්‍රාම ගැන්වීමේ වයස් සීමාව ඉහළ දැමීමට මහ බැංකුවෙන් යෝජනාවක්
CFIN Corporate Update - STRONG BUY - 31 03 17 - FC Research EmptyTue May 28, 2019 8:03 am by කිත්සිරි ද සිල්වා

» සදහම් අටුවාව
CFIN Corporate Update - STRONG BUY - 31 03 17 - FC Research EmptyTue May 28, 2019 7:07 am by ruwan326

» බැරි වෙලා වත් අනික් පැත්ත උනොත්...?
CFIN Corporate Update - STRONG BUY - 31 03 17 - 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
CFIN Corporate Update - STRONG BUY - 31 03 17 - FC Research EmptyFri May 24, 2019 3:10 pm by puliyanam

» Songs to listen
CFIN Corporate Update - STRONG BUY - 31 03 17 - FC Research EmptyFri May 24, 2019 11:26 am by yellow knife

» Dhammika Perera non-committal on common candidate speculation
CFIN Corporate Update - STRONG BUY - 31 03 17 - FC Research EmptyThu May 23, 2019 2:54 pm by කිත්සිරි ද සිල්වා

» Films - To Watch List
CFIN Corporate Update - STRONG BUY - 31 03 17 - FC Research EmptyWed May 22, 2019 10:04 am by කිත්සිරි ද සිල්වා

» Japan, India in Deal at ‘Belt And Road’ Colombo Port: Nikkei
CFIN Corporate Update - STRONG BUY - 31 03 17 - FC Research EmptyTue May 21, 2019 2:06 pm by Ethical Trader

» Presidential poll between 15 Nov-7 Dec
CFIN Corporate Update - STRONG BUY - 31 03 17 - FC Research EmptyTue May 21, 2019 11:31 am by bjmd

» Flying is the Safest mode of Transport
CFIN Corporate Update - STRONG BUY - 31 03 17 - FC Research EmptyTue May 21, 2019 7:07 am by කිත්සිරි ද සිල්වා

» My Port Folio Bleeding But Its just the Begining Of..
CFIN Corporate Update - STRONG BUY - 31 03 17 - FC Research EmptySat May 18, 2019 7:40 pm by serene

» Sri Lanka mulls 25-pct ownership limit in finance companies
CFIN Corporate Update - STRONG BUY - 31 03 17 - FC Research EmptyFri May 17, 2019 3:40 pm by Backstage

» Searing Heat in China Is Causing Havoc for Rubber Makers
CFIN Corporate Update - STRONG BUY - 31 03 17 - FC Research EmptyFri May 17, 2019 2:43 pm by Backstage

» Israeli spyware breached WhatsApp security
CFIN Corporate Update - STRONG BUY - 31 03 17 - FC Research EmptyWed May 15, 2019 7:47 am by කිත්සිරි ද සිල්වා

» Is Burka prohibted ?
CFIN Corporate Update - STRONG BUY - 31 03 17 - FC Research EmptyWed May 15, 2019 7:30 am by කිත්සිරි ද සිල්වා

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

CFIN Corporate Update - STRONG BUY - 31 03 17 - FC Research

Go down

CFIN Corporate Update - STRONG BUY - 31 03 17 - FC Research Empty CFIN Corporate Update - STRONG BUY - 31 03 17 - FC Research

Post by CSE.SAS on Tue Apr 18, 2017 10:13 pm

CENTRAL FINANCE COMPANY PLC

Corporate Update - STRONG BUY

Current Price: LKR 87.0 Fair Value: LKR 107.0

“Strong Performance Sustained”

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

Central Finance Company PLC (CFIN) is the 3rd largest Non-Bank Finance Company based on Market Capitalization having a total asset base of LKR 78Bn. The company has the highest credit rating among privately-owned finance companies, an A+ with a stable outlook assigned by Fitch Ratings. We initiate coverage on CFIN at a time when the share is trading at an attractive discount to its fair value giving an annualized return of 26%. STRONG BUY.

Portfolio growth sustained at a CAGR of 10% FY16-19E: CFIN’s portfolio is expected to record a growth at a CAGR of 10% (FY13-16 CAGR: 12%) driven by the increasing GDP per capita and sustained private sector credit growth. IMF forecasts private sector credit growth to continue at 14%-15% levels between 2017E-2020E. The effects of slowing down new vehicle registrations due to increased duties is expected to be partially offset by the growth in second hand vehicle market and the increasing loans and advances to SME, construction, transportation and services sectors.

Lower impairments and low cost funding enhances bottom line: CFIN is benefitted by rising vehicle prices that prompt customers to make timely payments and secure their loans, leading to lower impairments. In addition, the company enjoys the healthy credit rating of A+ with a Stable Outlook by Fitch Ratings, enabling it to access low cost funding. Moving from leases to loans further enables CFIN to re-price the loans in a rising interest rate environment. These factors support and enhance the bottom-line growth.

CFIN to provide an annualized return of 26% by FY18E: FC Research estimates CFIN’s fair value at LKR 107.0 (Justified PBV based LKR 125.0, PER based LKR 138.0, Residual income based LKR 95.0 and applied an illiquidity discount of 10% for lower trading volumes) giving a total return of 26% (capital gain of 23% and dividend yield of 3%) in FY18E. FC Research further estimates CFIN’s fair value at LKR 120.0 in FY19E.

Investment risks: Interest rate risk, regulatory and government policy-related risk, credit risk and liquidity risk are key risks CFIN faces.

Disclosure on Shareholding:

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

Discount for liquidity:

The fair value of CFIN has been adjusted 10% downwards to reflect the lower trading volumes of the share compared to the average trading volume of the market.

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