EPS beat in Q3, impressive opex reduction

Sparebanken Møre (MORG) presented a Q3 EPS of NOK 7.4, where higher trading income, along with lower opex and impairments, resulted in a solid EPS beat. The increased provision within the offshore segment is supportive, but MORG still lags DNB and SRBANK. We have increased 2020e EPS 10%, and 2021e/2022e EPS 4%/3%. We keep our Buy rating and target price of NOK 330 for now. At NOK 290 MORG is trading around 10.3x ‘21e EPS and 0.88x ‘20e BV.

Unusually weak

Sparebanken Møre (MORG) presented a strong Q2 EPS of NOK 7.2, but the surprisingly weak NII overshadowed the report. We had also expected increased provisions within offshore and this uncertainty remains a weakness in our view. We have increased 2020e EPS 19%, but lowered 2021e/2022e EPS 4%. We lower our target price to NOK 280 (290) but retain our Hold recommendation. The new TP is equivalent to 11x 2021e EPS and 0.85x 2020e BV.

Solid Q1, but offshore remains their weakness

Sparebanken Møre (MORG) presented a solid Q1 report on Thursday and despite a soft NII and higher opex, lower impairments resulted in an earnings beat. The loan losses of NOK 36m, equivalent to 19bps is contrary to what we have seen in the other Norwegian banks and we expect higher provisions in Q2 following reversals within corporate in Q1. We have made fairly neutral estimate revisions to 2021 and hence reiterate Buy and target price of NOK 300 for now.

Attractive yield and flexibility on capital

Sparebanken Møre (MORG) presented a solid Q4 report today despite a soft NII characterised by NOK 15m in higher crisis resolution/deposit guarantee fund fees. The DPS of NOK 17.5 was above our expectations and is currently yielding an attractive 5.2%. The opex trend is a bit worrying and something we will focus on going forward, but we continue to find the investment case attractive and reiterate Buy and target price of NOK 350.

Q4 earnings in line, attractive 5.3% yield

Q4/19 EPS came in at NOK 9.00, 3%/2% above ARCe/cons Soft NII following increased crisis resolution/deposit guarantee fund fee CET1 came in 90/80bps above following higher transitional effects Expect fairly neutral estimate revisions

LIBERUM: Plus500: Strategic progress pays dividends

Tatton Asset Management (TAM LN) - Record net inflows

Tatton, the leading on-platform discretionary fund manager (DFM) and IFA support services Group has released a trading update ahead of its results to 31 March 2024, due on 18 June 2024.

Hardman & Co Insight: 2023 was an annus horribilis for Quoted UK Infrastructure and Renewable Energy

The focus of Hardman & Co Research is on the nine quoted Infrastructure Investment Companies (IICs) and on the 22 Renewable Energy Infrastructure Funds (REIFs): the stocks analysed are all members of the Association of Investment Companies (AIC). We are updating our publication of January 2023, assessing both the lacklustre share price performances during 2023 and the key issues, including interest rates, inflation and power prices. As a 31-strong group, its combined market capitalisation is no

Ondo InsurTech FY24 Trading Update

Ondo InsurTech has released a brief post-YE update revealing its good progress continued through 2H24 and consequently FY24 will be in line with market expectations.

BlackRock World Mining

BRWM’s managers: we see all the classic signs of high commodity prices...

NextEnergy Solar Fund - Attractive Refinancing

The refinancing of a £135m revolving credit facility and the extension of a similar £70m facility gives NESF firepower as development opportunities for new solar are especially attractive thanks to lower module prices in Europe. They give the fund key financial flexibility at a critical time as it pursues its capital recycling programme.

The Hardman & Co Monthly: April 2024

Feature article: Steady as she goes, but could be better: A review of investment company liquidity since 2016 Liquidity is the lifeblood of equity markets. The measurement of liquid asset availability to a market or company is a way of gauging a market’s health. This article builds on our previous work, which analysed the liquidity data for non-financial trading companies, by applying the same analytical techniques to the investment companies (IC) space. We analyse liquidity for ICs as a whol

Initial Equity Trading Comments - 19 February 2024

M Winkworth+ (WINK, House Stock at 163p) - Solid FY23A results, well placed to grow

Resilient FY24, confident long-term outlook

Vp’s full year update highlights sector-leading results, once again benefiting from the diversity of its end markets and the quality of its specialist businesses. With results expected to be broadly in line with expectations, we trim our FY24 PBT forecast by c.5% to £39.0m, a shade below the FY23 outturn (£40.2m). We consider this an impressively resilient performance set against a mixed market backdrop. Under new leadership, a strategic refresh is underway and management is confident in long

Hybridan Small Cap Feast - 16/04/2024

16th April 2024 * A corporate client of Hybridan LLP ** Arranged by type of listing and date of announcement *** Alphabetically arranged **** Potential means Intention to Float (ITF) has been announced Dish of the day Admissions: Delistings: What’s baking in the oven? ** Potential**** Initial Public Offerings: Reverse Takeovers: Electric Guitar (ELEG.L) Concurrent with its Admission to trading on AIM, Electric Guitar is proposing to acquire the entire issued share capital of 3radical Limited for

Hybridan Research: Sector Review: Artificial intelligence in UK cybersecurity: the human uplift 17/04/2024

Artificial intelligence (AI) is a double-edged sword in cybersecurity. Whilst new AI models, architectures, and innovations are emerging to protect the security posture of organisations, attackers are also benefiting from deepfakes, sophisticated phishing, and automation of malicious codes. To ensure the impact of AI on cybersecurity to be a net-positive, we need to pit good AI against bad AI. Point solutions enhanced with machine learning: Global cybersecurity has been built with point soluti

AUM up 30% in FY24, record flows, forecasts raised

AUM jumped £3.8bn or +30% in FY24, reaching £16.6bn on 31 Mar 24, 12% above our previous forecast of £14.7bn. Including 50%-owned 8AM Global, Assets Under Influence hit £17.6bn. Investment performance provided a tailwind, adding £1.5bn to AUM. But our key takeaway from Tatton’s hugely impressive last few years, is that it has designed and implemented a superior offering in platform-MPS with net flows consistently far higher than peers. That leadership looks even more pronounced in H2-24 with net

NextEnergy Solar Fund – High- and growing-income opportunity?

NextEnergy Solar Fund (NESF) is almost 10 years old. Since launch, it has built a £1.2bn, 933MW portfolio of 100 operating solar assets, powering the equivalent of over 330,000 homes, declared dividends totalling £333m, and avoided the emission of about 2.2 Mt CO2e. NESF is on track to pay 8.35p in dividends, with forecast dividend cover of about 1.3x. Share price weakness that has afflicted the whole sector means that dividend translates to a yield of 11.1%, one of the highest in its sector, a

Morning Note – 18 April 2024