2 Small cap Financial Stocks - Kina Securities (ASX: KSL) & CML Group (ASX: CGR)

  • Aug 08, 2018 AEST
  • Team Kalkine
2 Small cap Financial Stocks - Kina Securities (ASX: KSL) & CML Group (ASX: CGR)

While the financial sector was by and large hit by Royal Commission, nevertheless few small-cap stocks have been up and running with resilient performances and are key to watch going forward. 2 examples of such stocks are dealt with in this article.

Kina Securities Limited (ASX:KSL) is under the financial sector with a market capitalization of $154.15 million and dividend yield of 5.48%. The stock of Kina was trading at a market price of $0.940 (as at market open on August 08, 2018) and has seen a daily price change of $0.010 and 1.075% in terms of percentage a day before. The stock has seen a performance change of 20.5% over the past 6 months. The financial company is set to acquire ANZ’s commercial and retail SME banking business in PNG and this acquisition significantly increases Kina Bank’s lending market share to 8.8% from 5.8% and Kina Bank’s deposit market share to 9.9% from 4.8%. Kina anticipates it will be fully funded through existing cash and capital reserves, and total capital expenditure required will be approximately AUD 11.1m over the next 12 months. The stock is trading near its 52-week high. Meanwhile, Director, Greg Pawson has acquired 402, 685 shares in the group recently and has enhanced respective stake. On the other hand, Fu Shan sold 100% of its holding in Kina.

CML Group Limited (ASX:CGR) is another small-cap group with a market cap of $114.59 million under the support services sector with financial services being offered. The stock of CML was trading at a market price of $0.570 (as at market open on August 08, 2018) and has seen a daily price change of -$0.010 and 1.724% in terms of percentage as at August 07, 2018. The stock has seen a performance change of 34.12% over the past 6 months. CML Group aims to advise that as at June 30, 2018, it was compliant with all financial covenants contained within the Memorandums, in accordance with the Corporate Bond Issue Information Memorandums released to the ASX on 18 May 2015. CML had a trade finance loan book funded by Corporate Bonds of over $45.9m at the end of June 2018, of which it had supplied actual funding of $27.9m which represents a loan to value ratio of 60.9%. The purpose of this release is to confirm compliance with Corporate Bond covenants and should not be relied upon as an indicator of business volume or overall performance, which is now a small component of CML’s funding pool. The group now expects to have its FY18 EBITDA to be over $17 million based on growth in cashflow finance division, integration of Thorn Debtor and lucrative result from Equipment finance division.

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