Why SFIN? ETF has invested in 2014/15

Teller · 1 Why SFIN? ETF has invested in 2014/15 Tue Aug 11, 2015 6:23 pm

Teller

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Why SFIN?
SFINs share price has a more potential to grow. The main feature which i love the most is highest dividend payout in the industry.
The rate is equival to current bank interest rate at the moment

SFIN market price = 27
dividend = 1.25
percentage = 1.25/27x100 = 4.6%

Dividend pay out ratio
EPS.2015 = RS.2.35
DPS =RS.1.25
Ratio = 1.25/2.35*100% = 53.20%
Its a really amazing pay out.

Other factors
Retained earnings has increased by 71.9 % up to 864 Million in 14/15 compare with 2013/14

Average lease & advances growth more than 20%

Net profit increased by 44% ( EPS has increased from 1.62 to 2.35 from 2014 to 2015 )

Return on equity over 17%

Total Assets 8.8 Bn

Singer sri lanka holds over 80% which will never sell in the market
Dividends History

2014/2015 >>>>>>>Rs.1.25

2013/2014>>>>>>0.65

2012/2013>>>>0.65

2011/2012>>>0.79

2010/2011>>0.40

Valuation
Last quarter EPS stands 0.67

Average growth 0.67 * 1.20 = 0.80

Annual EPS 0.80 * 4 = 3.20

Sector minimum PER 10

Share price minimum should be 32 /- but compare with other finance companies above RS.40 is possible
Holding
ETF has invested freshly in SFIN during 2014/2015 financial year while AEC has increased its holding up to 1.24% . Public holding has decreased 15% to 13 % from 2014 to 2015

31.Mar.2015 share holding
Singer (Sri Lanka) PLC-132,931,054 (80.40%)

Employees Trust Fund Board-3,769,049 (2.20%)

Associated Electrical Corporation Ltd-2,050,000 (1.24%)

31.Mar.2014 share holding
Singer (Sri Lanka) Plc - 132,931,054 ( 80.40%)

Associated Electrical Corporation Ltd - 1,560,000 ( 0.94%)

I believe SFIN will more attractive sooner than later with june quarter financial reports.
Best of luck

Last edited by Teller on Tue Aug 11, 2015 6:40 pm; edited 2 times in total (Reason for editing : typing error)

Teller · 2 Re: Why SFIN? ETF has invested in 2014/15 Tue Aug 11, 2015 7:16 pm

Teller

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SFIN only 13% public holding. Very easily push up to its real value.

worthiness · 3 Re: Why SFIN? ETF has invested in 2014/15 Tue Aug 11, 2015 8:50 pm

worthiness

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Performance indicators display excellent improvement in operational activities. Surprisingly investors are not yet hit to chase the SFIN counter. Is it subject to sort of manipulation or mishandling?

sandunj · 4 Re: Why SFIN? ETF has invested in 2014/15 Tue Aug 11, 2015 9:01 pm

sandunj

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There is a still good opportunity to buy SFIN around 27. The way foreigners has purchased this in last few days and also as teller notified ETF now became 2 nd largest share holder. Today it tried to break 28 but still collection going around 27.

So due to several key facts SFIN can consider as a strong and safe BUY at 27 For very short term.

vic19 · 5 Re: Why SFIN? ETF has invested in 2014/15 Tue Aug 11, 2015 9:02 pm

vic19

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Hi Teller, if singer finance is good with the backing of singer group., then I compare abans finance which is on similar settings with the backing of abans group., more or less similar items however abans says it has moved on to solar powered items as we'll.
Your views please. Thanks

anges · 6 Re: Why SFIN? ETF has invested in 2014/15 Tue Aug 11, 2015 10:26 pm

anges

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good share pays a good dividend annually

Teller · 7 Re: Why SFIN? ETF has invested in 2014/15 Tue Aug 11, 2015 11:56 pm

Teller

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@Vic 19, most of the finance companies are doing well. AFSL also improved results with recent financial reports which is back up by ABANs.LFIN,CDB,COCR,LOLC,CLC,VFIN,CRL even ALLI are some of companies. There earnings are really well also and do doubts.
Actually as investors we want sevaral returns. Its not only capital gains. Especially investors in countries like America more consider dividends. Most of sri lankans they dont consider this dividend factor. Every one is looking for capital gains.
People like senior citizens want attractive dividends. Funds like EPF wants attractive dividends.
So this is the reason i see the great potential of SFIN which is having over 50 % divedend payout ratio as well as 20% average growth while 44% Profit increasement s & 70 % increasement of retained earnings.
ETF has baught huge quantity of SFIN shares 14/15 financial years because of this higher dividend pay outs ratios,
As we know ETF fund managers are very careful to buy any stock to there portfolio in recent decades. ETF Was misused in 2011/12 so they never want to repeat this black mark once. So they may considered before SFIN investment very carefully to do so. Finally By considering all these factors i assume share price will be adjusted over 32_35/- in very short time.
We cant compare SFIN with any other finance companies as they dont pay much dividends based on their earnings as well as market values.
Good luck