Research

 

Standard Investment Bank has an extensive research database which includes listed company filings, price movements, declared company risks, market index, economic and sectoral data that spans 5 years.

To efficiently analyze companies and industries, we also produce and circulate various research materials and provide various research services to our wide client base. The reports and services include:

  1. Daily Reports

The focus here is mainly to report on the Nairobi Stock Exchange trading activity for the day including any company actions that may be of interest to our clients.

Namely:

      • Kenya Morning Brief (every morning)

      • Kenya Daily Report (every day at end of trading)

  1. Weekly and Monthly Market Reports

Summarize the week’s activity and give an outlook of what is expected in the weeks ahead.

Namely:

      • Kenya weekly market wrap

      • Kenya fixed income (monthly)

  1. Research Notes

These focus on particular companies and/ or industries and are aimed at identifying investment opportunities that could potentially yield higher returns for our clients.

Namely:

      • Regular company specific and industry wide research

      • East Africa listed company research

    • Full coverage: Kenya, Uganda

    • Limited coverage: Tanzania, Rwanda

  1. Bespoke Research Notes

On request, we offer customized research services based on company, sector etc

  1. Corporate Access

SIB will also provide un-rivaled corporate access for you.

  1. Bloomberg

SIB heavily relies on Bloomberg and this will be available to you for provision of historical data and technical analysis tools

Kindly contact our research department to inquire about recieving our research materaial.

Yield curve

We currently run fixed income research as part of our Daily report and Banking sector report. We are working on having a standalone research report to be published monthly.
We currently do not produce our own yield curve.

Company specific research

Currently, SIB has 24 companies under coverage, with up to date valuations on more than half of these. The research team is biased to fundamental analysis. The team ensures it has up to date economic and sector specific data to facilitate the valuation process. To assist clients take advantage of short-term market volatility, research maintains a detailed database that allows for quick technical analysis. The team also has full time access to Bloomberg making the data mining process more efficient.   


Valuation methods

Our approach to valuation is based on strict review of fundamental factors. Pre-agreed valuation methodologies are used for different sectors and companies, with regular review to confirm appropriateness. We use both absolute; DCF, DDM & DFCFE and relative; PE, PB, EV/EBITDA valuation methods. Our NAV calculation when using PB valuation method is derived based on ROE & ROA expectations. To reinforce our valuation approach and to meet varying investor assumptions, we provide sensitivity analysis tables depicting our base case value and array of values given change in key assumptions

Valuation methodology for securities

As a valuation methodology for securities, we use a relative PB valuation approach for all banks, insurance companies and investment companies. DCF for all manufacturing companies and a combination of DCF & DFCFE for manufacturing companies with significant gearing or volatile cash flows. Upon results announcement or disclosure of any material information, we relook at our forecasts and perform both a price & forecast earnings variance analysis. We clearly advice our clients if either price & earnings performance has been below/above our expectations.

We strive to ensure that all our valuations are no more than 6 months old. To add integrity to our valuations, all valuations undergo an internal peer review within the research department. To ensure that valuations are constantly monitored and up to date, we have a team of 3 research analysts who are responsible for specific companies.

To ensure clients fully understand changing trading patterns, research publishes monthly and quarterly reports detailing trading statistics for the respective period. Also, on a daily and weekly basis, research publishes detailed reports highlighting movements in the equity market.

Research Tools and Systems

  • Bloomberg

  • Proprietary excel models (company and industry specific)

  • Proprietary excel database with trading statics, starting 2005

  • Internal library with company annual reports

  • NSE data vending service

  • Access to data through international industry associations

Legal Disclaimer

The information/quips/quotes in this newsletter originates from domestic and international information public sources (including the Internet) that are deemed reliable, along with public information, and SIB’s own processing and estimates at the time. The information has not been researched independently by SIB and SIB does not vouch for the precision, veracity or rightness of the information. SIB does not intend to disappoint anyone with their views in the newsletter as the newsletter is issue oriented and one can lose money based on our views. The opinions of the authors can change without notice and SIB is not obligated to update, rectify or change the report if assumptions change.

The newsletter is only published for informational purposes and shall therefore not be viewed as
recommendation/advice to make or not make a particular investment or an offer to buy, sell or subscribe to specific financial instruments. SIB and its employees are not responsible for transactions that may be carried out based on information put forth in the report. Readers who are interested in making transactions are urged to seek expert advice and familiarize themselves thoroughly with the investment options on offer. Investments always entail financial risk, including risk due to local investments and fluctuations in the exchange rate of currencies. Investors’ investment objectives and financial position vary. It should be noted that past returns do not indicate future returns. Reports and other information from SIB are only intended for private use. This report is a short compilation and should not be considered to contain all available information on the subjects it discusses.

 
 
 



               
  
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