In a broadly solid result, underlying profit for Kina Securities in the 1H was in line with Morgans forecast. Bad debts were well contained and an impresiive 18% return on equity (ROE) was posted.

The broker now includes in its forecasts the impact from the December budget (PNG government) which increased the corporate income tax rate on PNG Commercial Banks to 45% from 30% from the 2023 fiscal year.

The target drops to $1.02 from $1.11. Add.

Sector: Diversified Financials.

Target price is $1.02.Current Price is $0.78. Difference: $0.25 - (brackets indicate current price is over target). If KSL meets the Morgans target it will return approximately 24% (excluding dividends, fees and charges - negative figures indicate an expected loss).

© 2023 Acquisdata Pty Ltd., source FN Arena