NBK’s FY09 earnings announcement in yesterday’s trading session helped lift market sentiment towards large caps,. Many big names including KFH rose after the news as it gave a positive indication of overall earnings. KFH followed NBK and announced their earnings today, only to disappoint with a 24% decrease to KD 118.741 million (52 fils) in 2009 compared to KD 156.959 million (68.1 fils) in 2008. Fourth quarter net profit was KD 12.4 million compared with a loss of KD 63.6 million a year earlier. The result fell short of the KD 19 million profit EFG-Hermes had expected. However, total assets and liabilities increased by approxmatly 7%, while equity didnt increase by much.
Kuwait Finance House (KFH) posted Book value per share is KD0.540 and the stock is trading at Price/Book of 2x, same as NBK. Kuwait and the GCC P/B average is 1.8x and 1.4x respectivly. KFH will distribute 25fils and bonus shares of 8%, which gives the stock a yield of 2.3%. NBK announced yesterday a 45fils distribution which yields 4.1%.
In my post KFH a Bit Overvalued a year ago, I tried to forecast FY09’s BVPS. After doing the math I calculated the BVPS to be KD0.5 and gave a price target to the stock of KD1.000.
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Loading ...Tags: 2009 earnings, KFH, KHF 2009 earnings, KSE, kuwait finance house
Excellent call Saud. Its really sad that they actually came out and distributed dividends on those earnings. To date, KFH has set aside KD460 million in provisions for bad loans. Lets just wait and see what the future holds for this conglomerate.
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Wow! Good job, mashala
I was wondering about their dividend distribution too. I know they compete with NBK in that sense, ie. if they distribute they feel KFH must distribute as well but it makes me wonder if they have any big expansion plans, grand projects going forward.
I would like to see your estimate for 2010 BVPS by April of this year too
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Saud Reply:
February 4th, 2010 at 5:13 pm
hehe sure thing
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A lot of stakes relies on their international real estate portfolio for a strong recovery in earnings.
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