I dont know why people are still stating buy CFVF @ 50.00 level

Nuwan Samarawickrama

Nuwan Samarawickrama

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any reason ???

dineshfernando

dineshfernando

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The next few quarters will be exceptionally good for both CFVF and ESL.

CFVF last quarter EPS is Rs. 2.07 and annualized is Rs. 8.28. They pay nearly 100% of their profits as dividends. If you buy at Rs. 50/= and get Rs.8 as dividend then your return only from dividend is 16%. This is excluding capital gains.

Remember CFVF paid Rs. 15/= as dividend in 2010. What a return?

Company ID:- CFVF
Date of Announcement:- 09.February.2010
Rate of Dividend:- Rs.15.00 per share - Interim Dividend
Financial Year:- 2009/2010
Shareholder Approval:- Not Required
XD:-18.Feb.2010
Payment:- 01.Mar.2010
Share Transfer Book Open

windi5

windi5

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Its seem they gonna declair 25 dividend this time when u look at heavy trading.

RPPA

RPPA

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Machang.

After that 15/- dividend they have split the share.

So you will not get that much.

5-8 max

EPS

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CFVF holds 16 Billion worth of Trading Treasury Bills as at 30.06.2014 report. All seems to be above 7.5% or 8% percent of TB rates.
Now TB Rates drop to 5.69% range. Hence, They have massive capital gains.
They will report thease during next quarters.
So, we can expect between 1 - 2 Billion profit for 2014/15, means EPS morethan 15 - 20 range.
Their, Net Asset Value is 23 range.
Possible to trade NAV x 4-5 times, when compaire to COCR.
So, I think CFVF will trade (Theoriticaly) = EPS 15 x PER 8 = Rs.120/- range by end of 2014/15 Financial Year.
This means Price appriciation is more possible.
That's why inteligent investors collecting this share. Every day you can see 1.5 Mn arround CFVF collections.
I can't see majour selling. Also, their market free float is 15 Mn, out of 100 Mn issued capital.
More than 80 Mn hold by their parent company CSEC.
Mega CFVF rally not started yet. I think one rally we can see up to 70/- before the 30.09.14 financial release.
Second rally I expect after the accounts. That can be a mega CFVF rally. Untill patient.
Also, 2014/15 dividend announcement on card. May be Rs.7.50 - 10 Range.

ecse

ecse

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@ EPS,
Is it good to collect JINS at this level than CFVF?

EPS

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Janashakthi Insurance (JINS), the third largest general insurance company in the country with a market share of c.12% in 2013 (in terms of Gross Written Premium) in the LKR53.2 bn general insurance industry. The company being a composite insurer further commands a market share of 5.2% in life insurance business to be among the top 6 life insurance providers.
The overall GWP of JINS is expected to grow by c.7% CAGR in 2013-2015E. The expected growth in international trade (exports and imports are estimated to grow by c.17% and 10% respectively in 2013-2016E), construction growth (c.9% in 2014-2016E) believed to bolster general insurance business whilst increasing per capita GDP and low penetration levels (1.1% of GDP) poised to drive the life insurance business in the foreseeable period. Premium income increased at a 5 year CAGR of 11% in 2009-2013 although reported a marginal dip of 2.4% YoY to LKR4.2 bn in 1H2014. Meanwhile in tandem with GWP growth, the Net Earned Premium (NEP) has also reported a 5 year CAGR of 11% in 2009-2013 whilst going forward we expect a growth of 7% in 2013-2015E. In addition, investment income has risen marginally to LKR773.8 mn in 1H2014 whilst investment base grew by c.5% QoQ to LKR13.3 bn in 1H2014.
Combined ratio of general insurance below the industry average. The combined ratio of general insurance stood at 88% in 1H2014 which is well below the industry average of 102% in 2013. The claim ratio for general insurance stemmed down to 61% in 1H2014 against 63% in the preceding first half whilst claim ratio for life insurance increased to 32% in 1H2014 compared to 22% in 1H2013. Further expense ratio for the company has increased to 28% in 1H2014 against 25% in 1H2013 lured by increase in operating and administrative expenses.
JINS projected to grow its net earnings by 12% YoY in 2015E. The overall industry having grown c.8% YoY thus far and the life insurance penetration being just 1.1% (total GWP as a % of GDP) indicating high potential with the growing income levels. Meanwhile the company maintained a healthy bottom line throughout the past years where net earnings recorded a 5 year CAGR of 26% in 2009-2013 whilst reporting growth of c.10% in 1H2014. Further despite the high gross claims in the non-life insurance business, group recorded an underwriting profit of LKR1.9 bn in 2013 and LKR1.0 bn in 1H2014.
Share offers value on 1.4x PBV. JINS is trades on 1.4x PBV (2014E) and 1.2x PBV (2015E) and is at a discount (c.26%) to 1.9x PBV of the insurance sector. Further the counter trades on 6.7x forecast 2014E net profit and 5.9x projected 2015E net earnings whilst offering value with a ROE of 16-17% in 2014-2015E and a dividend yield of 5% for the same period. Further on an implied PBV multiple of 1.5x on 2015E book value we see a c.26% upside and hence we initiate BUY.

zenobia

zenobia

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Thanks EPS

RPPA

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Tnks for detailed infor EPS.

CSE.SEE · 10 CFVF.N0000 Mon Sep 29, 2014 11:39 am

CSE.SEE

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http://forum.srilankaequity.com/t37052-cfvfn0000?highlight=cfvf

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I dont know why people are still stating buy CFVF @ 50.00 level

1 I dont know why people are still stating buy CFVF @ 50.00 level Thu Sep 25, 2014 4:02 pm

Nuwan Samarawickrama

2 Re: I dont know why people are still stating buy CFVF @ 50.00 level Thu Sep 25, 2014 4:31 pm

dineshfernando

3 Re: I dont know why people are still stating buy CFVF @ 50.00 level Thu Sep 25, 2014 4:41 pm

windi5

4 Re: I dont know why people are still stating buy CFVF @ 50.00 level Thu Sep 25, 2014 5:03 pm

RPPA

5 Re: I dont know why people are still stating buy CFVF @ 50.00 level Thu Sep 25, 2014 5:30 pm

EPS

6 Re: I dont know why people are still stating buy CFVF @ 50.00 level Thu Sep 25, 2014 5:51 pm

ecse

7 Re: I dont know why people are still stating buy CFVF @ 50.00 level Thu Sep 25, 2014 6:18 pm

EPS

8 Re: I dont know why people are still stating buy CFVF @ 50.00 level Thu Sep 25, 2014 8:48 pm

zenobia

9 Re: I dont know why people are still stating buy CFVF @ 50.00 level Thu Sep 25, 2014 8:51 pm

RPPA

10 CFVF.N0000 Mon Sep 29, 2014 11:39 am

CSE.SEE

11 Re: I dont know why people are still stating buy CFVF @ 50.00 level

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