SBM Holdings Ltd.

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We see SBMH delivering MUR447mn net profit this year; the key delta is higher risk costs due to Mauritius’ vulnerabilities to the global slowdown. Significant changes in the Board’s composition earlier this year (which saw more than half the members ...

Management comments support our positive outlook. Loan growth likely to accelerate. Kenya is seeing loan market share gains this year and this is likely to continue into 2020, via both capex and working capital facilities. Significant changes to pers...

Effective tax rate (23%) was lower than expected (27%). Operating costs (+32% yoy) were higher than expected, largely due to a special levy which is not included in the tax line, and a MUR204mn India cyber-attack provision, over 80% of which will be ...

Domestic leader with a growing international franchise. Discounted valuation, rapid EPS growth to attract investor interest. SBMH trades at 0.6x 2019f tangible PB, 7.4x 2019f PE and 6.2x 2020f PE. We expect delivery of sustained improvements in both ...