Avior Capital Markets - PSG Konsult Ltd (1961) PSG Konsult | Running ahead of its AUM

Report

Avior Capital Markets

David Talpert ...

Harry Botha

PSG Konsult | Running ahead of its AUM

In FY '19, PSG Konsult (KST) returned 26% relative to a SWIX return of -5.8%. Due to negative market returns and benchmark underperformance, we expect KST to have a weaker H2 '19 compared to H1 '19. Despite a slowdown in H2, we expect FY '19 wealth and asset management net flows of R10.8bn and R10.5bn respectively. We believe KST has rerated relative to its AUM and is therefore expensive at current levels.

18/03/2019 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.

See profile

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.

See profile

Analysts

David Talpert

Harry Botha

Other Reports on these Companies

Avior Capital Markets

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.

October 22, 2019 October 22, 2019 15 EN

Avior Capital Markets

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

â€¢ We met with the Guaranty Trust Bank (GTB) CFO last week. Management noted that the bank's operations trends in Q3 â€˜19 had been in line with management's guidance after the interim results. In our view, GTB's performance has been positive YTD given the challenging operating environment in Nigeria. However, due to regulatory risks (CBN increasing minimum LDR) and the impending entry of major telcos (e.g. MTN) into the mobile money banking space, we caution that asset quality and the Bank's low cost of funds could deteriorate over the next three years. â€¢ Refinitiv estimates that Afric...

October 4, 2019 October 4, 2019 10 EN

Avior Capital Markets

PSG Konsult | Let down by their investment style

We expect PSG Konsult (KST) to report 5% H1 '19 HEPS growth relative to the 14% CAGR achieved over the past four years. KST's asset management division will probably report a decline in earnings due to benchmark underperformance and lower AUM levels. Despite short-term headwinds, we are positive on KST's long-term growth prospects. We expect KST to gain wealth market share as its franchise model attracts top advisers and generates positive net flows. We expect strong growth (17% CAGR in earnings to FY â€˜22f) from the insurance operations that are still sub-scale. KST's share price has de...

September 6, 2019 September 6, 2019 15 EN

Tiger Brands | ESG | Pressed to execute

TBS receives a corporate governance score of 3.37 out of 5 (FY '18: 3.42) and is rated as â€˜good'. TBS receives an ESG risk score of 2.6 (FY '18: 2.6) which we consider moderate. As in FY '18, there were various changes to the Board which raises corporate governance concerns surrounding succession planning and the execution of strategies. Post year-end, L Mac Dougall retired as CEO of the Group. N Doyle has become the new CEO of the Group as of 1 Feb '20. We note the corporate governance concerns around the appointment of N Doyle given that he left the Group at an important juncture in FY...

February 7, 2020 February 7, 2020 15 EN

Ayan Ghosh

Ayan Ghosh

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

From an SA asset-allocation perspective, SA Bonds (ALBI +1.2%) outperformed cash (STEFI +0.6%) and equities (Capped SWIX -2.6%) in Jan â€˜20. The ZAR was the worst performing EM currency in Jan â€˜20, depreciating by 6.8% against the USD, as EM risk appetite declined, with the Coronavirus spreading further than the Sars virus, which began in 2002, likely to hit global growth. Our discussions with various corporates in China suggest that the Coronavirus will peak over the coming weeks and could take until Mar '20 to resolve. In USDs, MSCI SA (-8.8%) underperformed MSCI EM (-4.7%) in 2020, as ...

February 5, 2020 February 5, 2020 9 EN

Harry Botha

Harry Botha

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

Challenging SA economic conditions bring SA REITs credit health and banks' lending to the sector into the spotlight. Our analysis in this report provides greater detail on SA banks' exposure to commercial property and listed REITs. Our stress tests highlight that SA banks' lending to listed REITs (exposed to SA or offshore operations) has been conservative to date. REITs' equity capital and diversified portfolios support the property companies' credit health. While SA banks' near-term earnings growth prospects are geared to SA economic conditions, we highlight that valuations are undemandin...

January 28, 2020 January 28, 2020 36 EN

Sign-up for free to access full reports immediately

Email Address*

Choose Password* ( 6 or more characters )

Due to regulatory restrictions regarding the distribution of financial research, this report is restricted to a specific region or investor type. Get access to exclusive reports by answering the questions below.

Select your country*

Get financial insights straight to your inbox

By clicking "register" you accept the Terms and Conditions & Privacy Policy

Already on ResearchPool?

Almost there...

Are you a professional investor?

Select your country

REGISTER

Create a free ResearchPool account to access full reports, get a personalised dashboard and follow providers or companies

In order to access this report please create an account.

LOGIN

PSG Konsult | Running ahead of its AUM

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

Create a free ResearchPool account to access full reports, get a personalised dashboard and follow providers or companies

Sign-up for free to access full reports immediately

ResearchPool Subscriptions

Get the most out of your insights

Why subscribe?

How to subscribe

ResearchPool Subscriptions

This report is only available to subscribers

Why subscribe?

How to subscribe