Sas­fin, Ste­fanutti Stocks

Finweek English Edition - - INSIDE - BY SIMON BROWN

WE REC­OM­MENDED A ‘ buy’ on Sas­fin in both 2013 and 2014, and back then i t was trad­ing on a price-to- book ra­tio of around 1.1 times, which of­fered some se­ri­ous value. The mar­ket has now caught on, push­ing the price higher and that price- to- book ra­tio i s now around 1 . 5 times – still of­fer­ing value, but not nearly as cheap as it has been in re­cent years.

We’re see­ing in­creased in­ter­est in lo­cal fi­nan­cial stocks and this has pushed t he en­tire sec­tor higher re­sult­ing in most fi­nan­cial stocks be­com­ing ex­pen­sive to vary­ing de­grees, while Sas­fin still of­fers some value and is on the low­est his­toric P/ E ( just over 10 times), and has a good div­i­dend yield of just over 3%.

Re­cent re­sults did not shoot the lights out, but were cer­tainly ve r y so l i d wi t h HE P S an d div­i­dends both up 15%, and costs only up some 9%.

Im­pair­ments took a hit, but are still be­low 1%.

Its new trans­ac­tional bank­ing di­vi­sion was l aunched l ast year and prom­ises great syn­er­gies for cross-sell­ing as Sas­fin has tr a di t i onal l y se e n it s cl i e nt s trans­act with other in­sti­tu­tions.

We’re not likely to see the great share price gains we have in r ecent years , but i t st i l l has po­ten­tial for the price to out­per­form its peers.

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