Avior Capital Markets - PSG Konsult Ltd (1961) PSG Konsult | Alpha driven growth

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Avior Capital Markets

David Talpert ...

Harry Botha

PSG Konsult | Alpha driven growth

PSG Konsult's (KST) H1 '19 results highlight impressive earnings growth due to strong investment performance, positive net flows and a growing insurance operation. KST has developed a resilient advice-led distribution network of 862 advisers in 239 offices. We believe distribution and investment in technology are key competitive advantages that will contribute to earnings growth of 20% CAGR over the next three years.

16/10/2018 15 EN

Underlying

PSG Konsult Ltd

PSG Konsult Limited is an independent financial services company. The Company offers clients access to a range of financial products to meet their financial planning needs, ranging from investments to insurance and wealth management services in-between. The Company operates through three segments: PSG Wealth, PSG Asset Management and PSG Insure. The PSG Wealth segment offers a range of personalized services, including portfolio management, stockbroking, local and offshore investments, estate planning, financial planning, local and offshore fiduciary services, multi-managed solutions and retirement products. The PSG Asset Management segment offers a range of local and global investment products, including both local and international unit trust funds. The PSG Insure segment offers a range of short-term insurance products and services from personal (home, car and household insurance) to commercial (business and agri-insurance) requirements.

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ZAE000191417 Johannesburg Stock Exchange South Africa

Provider

Avior Capital Markets

Avior is a globally recognised capital markets research and trading firm, with the broadest research coverage within the region, with 100+ SA and 20+ SSA companies under coverage. Avior services clients from offices in London, Cape Town and Johannesburg.

Our research quality is consistently recognised in local and global surveys, with 18 analysts currently rated in their respective sectors (FM 2017). Value add through in-depth, innovative, high quality and consistent research with comprehensive underlying fundamental modelling supported by regular analyst and roadshow interactions.

Avior has proven that by working closely with our clients we can mutually develop dominant positions in certain sectors, going from strength to strength. Avior has a dedicated ESG team, having been ranked #1 in Corporate Governance research since 2008.

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Analysts

David Talpert

Harry Botha

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PSG Konsult | A platform for growth

PSG Konsult (KST) has built a defensive business model by investing in technology, a nationwide office network and its large adviser base. We believe KST's H1 '20 earnings growth of 8% provides evidence of the Group's scalable distribution platform that can gain market share despite muted economic growth. KST's asset management performance was weak. However, a diversified revenue model resulted in offsetting growth in wealth management and insurance. KST's earnings growth and high barriers to entry justifies a premium rating.

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PSG Konsult | Alpha driven growth

PSG Konsult | A platform for growth

Avior Financials | GTB meeting notes | Q3 investment banking data | Nedbank | PSG Konsult net flows

PSG Konsult | Let down by their investment style

Tiger Brands | ESG | Pressed to execute

SA Investment Strategy | Review of January 2020 for SA investors: Coronavirus weighs on the ZAR

SA Banks | Low credit risk in commercial property | Time to buy SA banks

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