Revenue declined over the studied period. The PBT margins were lower in the first half of this period, and higher the latter half of this period. Though the revenue declined, the PBT remained flat throughout this period, due to the higher PBT margin in the latter half.
Quality: Good
Management: Good
Valuation: -
Growth: Flat, no growth.
Its revenues grew at rate of about 7% to 8 % per year from 2014 to 2022. Its PBT grew at the rate of slightly above 10% yearly and its adj EPS grew at about 10% yearly for the same period, in tandem with the increasing revenues. However, PBT margin has been flat during this period.
Its share price has increased slightly during this period and due to its EPS rising faster than its share price, its PE has contracted from PE of 8 in 2019 to PE of between 5 to 6 today.
LPI
Its revenues grew consistently and at a rate of between 5% to 10% yearly.. However, profit before tax declined since 2016 due to shrinking profit before tax margin. The profit before tax margin declined from a high of 37.6% in 2016 to 22.5% in 2022. This is due to liberalization of the insurance sector and the increasing competition in the market place.
Its share price has declined at the same pace as the decline in its profit before tax and its EPS, resulting in a flattish PER.
