A 27% year on year profit increase for Kina Securities met Morgans' forecast and guidance. The result actually beat forecasts in all areas, but was dragged down by higher opersating expenses.

The strong performance is reflected in Kina producing a 2021 return on equity of 17% despite an extremely robust 23% total capital
ratio, which is broadly double the PNG regulatory minimum.

The firm continues to possess a favourable long-growth pathway, the broker suggests, with only some 15% PNG lending market
share versus a 10% level two years ago. At 6x 2022 earnings and a better than 10% dividend yield, Morgans sees the stock as too cheap.

Sector: Diversified Financials.

Target price is $1.20.Current Price is $0.90. Difference: $0.30 - (brackets indicate current price is over target). If KSL meets the Morgans target it will return approximately 25% (excluding dividends, fees and charges - negative figures indicate an expected loss).

© 2022 Acquisdata Pty Ltd., source FN Arena