Tisco Financial Group

Tisco Financial Group Plc
 

TISCO has been making decent money from the niche segments, setting it up well for a sixth consecutive year of ROE expansion. While its medium-term strategic direction is something to watch, near-term rewards still look too good to overlook. We initiate coverage on TISCO as an OUTPERFORM. Our target price is based on 2x FY12F P/BV, which is derived from GGM with long-term assumptions of 15.5% ROE, 11.7% COE and 7.7% growth. The stock could re-rate on continued strong loan growth and ROE expansion.