ASA INTERNATIONAL GROUP (GB), a company active in the Consumer Finance industry, now shows a lower overall rating. The independent financial analyst theScreener confirms the fundamental rating of 4 out of 4 stars. However, the market behaviour deterioration triggered a risk requalification, which can be thus described as moderately risky. theScreener believes that increased risk justifies the general evaluation downgrade to Neutral. As of the analysis date November 19, 2021, the closing price wa...
Full Article at IIR has reaffirmed its Recommended rating for PIA after undertaking a review post the appointment of a new Portfolio Manager, Harding Loevner. The full report can be found on the IIR website. On 26 July 2021, Pengana International Equities Limited (PIA) announced a fully franked dividend of 1.35 cents per share for the June quarter. This represents an 8% increase on the March quarter dividend and takes the total dividends declared for FY21 of 5.1 cents per share, fully franked....
CGAP (Consultative Group to Assist the Poor) has released the results of its first bi-weekly global survey of microfinance institutions (MFIs), conducted on 1-15 June and relating to conditions in April 2020. A total of 180 MFIs took part in the survey, with aggregate total assets of US$85mn. Although the sample size is small in an industry context, the survey provides early insights on how the quality of MFI loans books deteriorated during the first month of Q2 20. We think the data will be ...
ASA International has issued an update on its business operations. Our key takeaways are positive: there is a limited health impact on day-to-day operations; balance sheet liquidity has strengthened and the company has been able to secure new funding; collection efficiency is on an improving trend; the effect of loan moratoria on the business seems limited, ex-India. We therefore reiterate our Buy rating on the shares with GBP2.75 target price. LIMITED HEALTH IMPACT OF COVID-19 So far, none o...
We resume coverage of ASA International shares with a Buy rating. Recent disclosures give us more comfort that forthcoming loan quality deterioration will be manageable, and that funding covenant breaches will not prove material. Our new Target Price of GBP2.75 generates 115% upside for the shares, and is equivalent to 10.4x 2021 PE and 2.5x PB. Sharp near-term deterioration in loan quality likely… Management indicated the PAR>30 ratio could rise to 5-10% of Group loans (and we think could pe....
ASA International (Under Review) reported FY19 net profit of US$34.5mn (+41% yoy on a reported basis, +7% yoy underlying), in line with our US$34.2mn forecast. Management also provided an update on the environment in 2020, including the impact of Covid-19. The company confirmed that the 2019 dividend has been suspended, with a final decision to be made later in the year. We will update our forecasts and recommendations following today’s results conference call. 2019 RESULTS KEY POSITIVES * T....
ASA International was scheduled to release its FY19 results yesterday but, like some other London-based listings (and as per its announcement on 16 April), the company has elected to defer this disclosure to allow more time to assess the impact of Covid-19 on its business. This, together with an earlier decision to suspend the FY19 dividend and shelve 2020 guidance, point to a material impact. As we demonstrate below, we think a significant level of bad news is already priced in to the shares...
Long-term ROE potential has dimmed. We now price the shares off 37.9% ROE versus 40.3% previously. Our sustainable ROA projection is 6.3% (7.0% before). The key drivers of these changes are: 1) the increased cost intensity of the business (more investment in branches and technology relative to new volume); and 2) the growing weight of India, which is a fundamentally less profitable market (price/margin controls).
Guidance lowered once more. The 9M 18 trading statement cut 2018 earnings guidance, and the recent FY 18 statement has done the same for 2019 earnings. Accordingly, we cut our EPS forecasts by 6-7% for 2019 and beyond. We think consensus is also likely to move down. We retain our Hold recommendation but trim our target price to GBP3.90 from GBP4.00.
Following the 9M 18 trading statement we reduce our projected 2018 earnings by 13% and 2019 by 17%. Effectively, we have pushed back our projections for the business by around a year. Accordingly, we reduce our target price to GBP4.00 (from GBP4.50), but with an ETR of -5.8% we maintain our Hold rating. The shares trade at 14.2x 2019f earnings and 6.2x 2018f PB, which is substantially higher than peers.
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