MUN:6LH

Stock Analysis Report

LH Financial Group

Executive Summary

LH Financial Group Public Company Limited, an investment holding company, engages in banking business in Thailand.


Snowflake Analysis

Flawless balance sheet and undervalued.

Share Price & News

How has LH Financial Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 6LH has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0%

6LH

-4.8%

DE Banks

-4.7%

DE Market


1 Year Return

0.7%

6LH

-3.0%

DE Banks

8.3%

DE Market

Return vs Industry: 6LH exceeded the German Banks industry which returned -3% over the past year.

Return vs Market: 6LH underperformed the German Market which returned 8.3% over the past year.


Shareholder returns

6LHIndustryMarket
7 Day0%-4.8%-4.7%
30 Day0%13.6%-4.0%
90 Day0%16.1%-1.4%
1 Year6.8%0.7%0.1%-3.0%11.7%8.3%
3 Year6.0%-8.4%-5.2%-10.0%11.4%1.6%
5 Year-3.7%-18.3%-6.2%-29.9%15.1%-0.7%

Price Volatility Vs. Market

How volatile is LH Financial Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is LH Financial Group undervalued compared to its fair value and its price relative to the market?

25.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 6LH (€0.04) is trading below our estimate of fair value (€0.05)

Significantly Below Fair Value: 6LH is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 6LH is good value based on its PE Ratio (8.8x) compared to the Banks industry average (17.8x).

PE vs Market: 6LH is good value based on its PE Ratio (8.8x) compared to the German market (20.7x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 6LH's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 6LH is good value based on its PB Ratio (0.7x) compared to the DE Banks industry average (0.9x).


Next Steps

Future Growth

How is LH Financial Group forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

10.0%

Forecasted Banks industry annual growth in earnings


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if 6LH's forecast earnings growth is above the savings rate (-0.4%).

Earnings vs Market: Insufficient data to determine if 6LH's earnings are forecast to grow faster than the German market

High Growth Earnings: Insufficient data to determine if earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: Insufficient data to determine if 6LH's revenue is forecast to grow faster than the German market.

High Growth Revenue: Insufficient data to determine if 6LH's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if 6LH's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has LH Financial Group performed over the past 5 years?

16.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 6LH has high quality earnings.

Growing Profit Margin: 6LH's current net profit margins (47.2%) are lower than last year (47.9%).


Past Earnings Growth Analysis

Earnings Trend: 6LH's earnings have grown by 16.8% per year over the past 5 years.

Accelerating Growth: 6LH's earnings growth over the past year (3.4%) is below its 5-year average (16.8% per year).

Earnings vs Industry: 6LH earnings growth over the past year (3.4%) exceeded the Banks industry -7%.


Return on Equity

High ROE: 6LH's Return on Equity (7.8%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is LH Financial Group's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: 6LH has a low level of unsold assets or inventory.

Debt Coverage by Assets: 6LH's debt is not covered by short term assets (assets are 0.7x debt).


Financial Institutions Analysis

Asset Level: 6LH's level of assets compared to its equity is low.

Allowance for Bad Loans: 6LH has a sufficient allowance for bad loans.

Low Risk Liabilities: 6LH's liabilities are made up of primarily low risk sources of funding.

Loan Level: 6LH has an acceptable proportion of non-loan assets held.

Low Risk Deposits: 6LH's loans are broadly funded by customer deposits.

Level of Bad Loans: 6LH has an appropriate level of bad loans (1.75%)


Next Steps

Dividend

What is LH Financial Group's current dividend yield, its reliability and sustainability?

6.87%

Current Dividend Yield


Dividend Yield vs Market

company6.9%marketbottom25%1.4%markettop25%3.7%industryaverage2.7%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: 6LH's dividend (6.77%) is higher than the bottom 25% of dividend payers in the German market (1.38%).

High Dividend: 6LH's dividend (6.77%) is in the top 25% of dividend payers in the German market (3.73%)


Stability and Growth of Payments

Stable Dividend: 6LH has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: 6LH's dividend payments have increased, but the company has only paid a dividend for 8 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (52.6%), 6LH's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.7yrs

Average board tenure


CEO

Sasitorn Phongsathorn (61yo)

2.1yrs

Tenure

฿1,532,632

Compensation

Mrs. Sasitorn Phongsathorn serves as an Independent Director of Pico (Thailand) Public Company since January 10, 2020. She is Chief Executive Officer of the LH Financial Group Public Company Limited since  ...


Board Members

NamePositionTenureCompensationOwnership
Sasitorn Phongsathorn
CEO, President & Executive Director2.1yrs฿1.53m0.0094% ฿75.3k
Naporn Sunthornchitcharoen
Executive Director8.8yrs฿1.89mno data
Adul Vinaiphat
Independent Director10.8yrs฿2.59mno data
Rutt Phanijphand
Chairman of the Board2.7yrs฿2.42mno data
Pradit Sawattananond
Independent Director1.8yrs฿849.33kno data
Khunawut Thumpomkul
Director6.5yrs฿1.83m0.013% ฿102.5k
Supriya Kuandachakupt
Independent Director2.5yrs฿1.78mno data
Somsak Assavapokee
Independent Director0yrsno datano data
Wu Kuo-Chin
Director2.5yrs฿1.26mno data
Ming-Shieh Li
Director1.8yrs฿504.33kno data

2.7yrs

Average Tenure

64.5yo

Average Age

Experienced Board: 6LH's board of directors are not considered experienced ( 2.7 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

LH Financial Group Public Company Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: LH Financial Group Public Company Limited
  • Ticker: 6LH
  • Exchange: MUN
  • Founded: 2009
  • Industry: Diversified Banks
  • Sector: Banks
  • Market Cap: ฿27.632b
  • Listing Market Cap: ฿800.567m
  • Shares outstanding: 21.09b
  • Website: https://www.lhfg.co.th

Location

  • LH Financial Group Public Company Limited
  • No. 1, Q-House Lumpini Building
  • 5th Floor
  • Bangkok
  • Thailand

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
LHFG-FTHAMSE (Bangkok-Alien Market Stock Exchange)THB1 (ALIEN MARKET)THTHBMay 2011
LHFGSET (The Stock Exchange of Thailand)YesOrdinary SharesTHTHBMay 2011
6LHMUN (Boerse Muenchen)THB1 (ALIEN MARKET)DEEURMay 2011
LHFG-RSET (The Stock Exchange of Thailand)NO VTG DEP RCPT REP 1 ORD THB1THTHBMay 2011

Biography

LH Financial Group Public Company Limited, an investment holding company, engages in banking business in Thailand. The company operates in four segments: Investment Holding Business, Banking Business, Fund Management Business, and Other Businesses. It accepts deposit products, such as demand deposits, savings deposits, time deposits, and fixed deposit receipts; and offers loans, including housing, retail, and commercial loans, as well as overdrafts. The company also provides funds; securities brokerage, trading, and underwriting services; and investment advisory services. LH Financial Group Public Company Limited was founded in 2009 and is based in Bangkok, Thailand. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/25 22:07
End of Day Share Price2020/02/25 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.