First Capital Holding PLC (CFVF ) is engaged in strategic investments and managing its subsidiaries i.e. First Capital Treasuries PLC (FCT) which is a Primary Dealer in Government Securities, First Capital Limited (FCL) engaged in structuring and placement of corporate debt, corporate finance advisory services and investments, First Capital Asset Management Limited (FCAM) engaged in unit trust and portfolio management, First Capital Trustee Services (Pvt) Limited (FCTS) which is a trustee services provider for corporate debt securities and First Capital Equities (Pvt) Limited (FCE) which is engaged in stock broking activities.
For the Six month ended September 30, 2020, CFVF reported a net profit of LKR 1,667 Mn, on a total asset base of LKR 10.7 Bn, vis-à-vis a net profit of LKR 794 Mn on a total asset base of LKR 11.6 Bn during the previous six month period. For the financial year ended March 31, 2020, CFVF (consolidated) reported a net profit of LKR 1,073 Mn, on a total asset base of LKR 45.6 Bn, vis-à-vis a net profit of LKR 8 Mn on a total asset base of LKR 41.3 Bn during the previous Financial year.
With the prevailing stable low interest rate environment CFVF’s subsidiaries will generate a normal profit (FCT will not generate a supernormal profit from Government securities trading ) which will at least generate Rs. 200 mn plus per quarter in that scenario CFVF 2020/21 Financial Year net profit will be over Rs, 2,0 bn.
CFVF Six month ended EPS - Rs. 16.15
Net asset per share - Rs. 47.64Estimated EPS FY 20/21 - Rs. 20.46
2019/ 20 FY Divided payout ratio - 90.54% (9/9.94)
Estimated dividend FY 2020/21 at 25% Discount- Rs. 14.63 ((20.46*0.9054)*75%)
The last one moth closed price average - Rs. 57.25
Considering the EPS of FY 2020/21 CFVF is trading at below 3 PE with grate upside potential.