Skarbiec Holdings - Supreme Dividends & More Upside Ahead
We upgrade to accumulate our view on Skarbiec Holding ("Skarbiec"), with a higher target of PLN 26.86, to reflect strong inflows into the asset manager's investment funds fueled by intense trading activity spurred by the coronavirus outbreak. In Q1 2020, Skarbiec registered a decline in assets under management to PLN 2.68bn, but the following quarter AUM rebounded to a spectacular PLN 3.29bn. A significant portion of the inflows came from individuals looking for savings alternatives after a series of interest rate cuts in Poland caused a 15% fall in term deposits. In a scenario where interest rates in Poland stay low in the medium term, the funds managed by Skarbiec are likely to enjoy further gains going forward, supported also by banks seeking to offset lost interest margin through increased selling of fee-generating investments. Accordingly, we anticipate 7% average annual growth in Skarbiec's AUM over the five years to FY2024/25 (Skarbiec's fiscal year runs from July 1 to June 30), when assets, especially in the top fee-earnings funds, will most likely be 27%-20% higher than initially assumed. Aside from a vibrant market, dividends are another important driver of Skarbiec's upside potential, with expected 2020 DPS of PLN 4.4 indicating a spectacular yield of 18%, and yields in the 8%-10% range expected in the years to come.
Skarbiec Holding SA is a Poland-based company engaged in the field of investment management. The Company's product portfolio comprises: open end funds, such as Skarbiec Akcja, Skarbiec Lokacyjny and Skarbiec Akcji Nowej Europy; closed end funds, including Skarbiec Rynku Nieruchomosci; fund of funds, offering investment in Skarbiec Top Funduszy Akcji, and Skarbiec Top Funduszy Stabilnych, among others; and a number of pension funds. Its products are primarily based on equities and bonds. Furthermore, It provides portfolio and asset management services that are aimed at high net worth individuals (HNWI), as well as corporate and institutional customers. The Company operates through a subsidiary, named Skarbiec TFI SA.
Set up in 1986, mBank (originally BRE – Export Development Bank) is Poland’s 4th largest universal banking group in terms of total assets and 5th by net loans and deposits at the end of June 2019. mBank has one of the oldest brokerages in Poland – we have been providing brokerage services since 1991 - and the biggest, serving about 300 ths clients.
We provide all brokerage services available in the Polish capital market (i.e. Warsaw Stock Exchange, non-public markets and forex) in a way that meets the expectations of all groups of investors, both individual and institutional. Participating in the dynamic growth of the Polish capital market since its inception, we have acquired competences and experience needed to provide the highest quality of service and we have won the trust and satisfaction of our Clients.
Over the past decade, mBank's Equity Research Team has been consistently ranked among the top research teams in Parkiet's annual institutional investor surveys (Parkiet is Poland's leading daily business newspaper). mBank analysts provide coverage on an extensive list of companies, mainly in Poland but also elsewhere in the CEE region: Austria, Czechia, Portugal, Ukraine and Hungary.
Clients get access to a comprehensive selection of research products including daily market insights, monthly roundups, macroeconomic views, industry- and company- specific analyses, investing strategies, earnings comments, etc.
We give our institutional clients numerous opportunities to connect with industry professionals, top executives, and leading analysts:
- Get direct access to senior management teams at listed companies (over 30 meetings in 2018),
- Engage in our many industry events, featuring listed Polish and global firms (in 2018, we hosted sector-themed conferences around industrials, chemical companies, telecoms, retail, and financials, and co-hosted a Best of Poland investors' with Commerzbank and the Warsaw Stock Exchange),
- Stay informed through an array of enlightening discussion panels, workshops, and briefing sessions with regulatory officials.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.