Mega Financial Holding Co., Ltd (2886) Earnings Report: 1H Net Income Surges to NT$20.40B, EPS at NT$1.38

Mega Financial Holding Co., Ltd on Smartkarma

Analyst coverage of Mega Financial Holding Co., Ltd on Smartkarma indicates a bearish sentiment, as highlighted by Daniel Tabbush. Tabbush’s report, “Mega Financial – NPL Formation In 1Q24 Surpasses All Peers, May YTD Net Profit Growth YoY Only 3%,” points out the company’s weak net profit growth in its May 2024 release. The surge in non-performing loans (NPLs) in the first quarter of 2024 is a concerning factor, with impairments rising approximately three times in FY23. NPL growth in 1Q24 exceeds that of all peers quarter over quarter, with Mega Financial’s year-to-date net profit only up by 3.2% as of May, indicating potentially high credit costs.

A look at Mega Financial Holding Co., Ltd Smart Scores

Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma

In analyzing the long-term outlook for Mega Financial Holding Co., Ltd, the company’s overall performance is quite positive based on the Smartkarma Smart Scores. Mega Financial Holding Co., Ltd scores well in value, dividend, growth, and momentum, all receiving a score of 4 out of 5. This indicates that the company is strong in these areas, suggesting good potential for future growth and returns for investors.

However, Mega Financial Holding Co., Ltd‘s resilience score is relatively weaker, receiving a score of 2. This aspect may pose some concerns regarding the company’s ability to withstand potential economic challenges or market volatility. Overall, based on the Smart Scores, Mega Financial Holding Co., Ltd appears to be a solid investment option with promising prospects, especially in terms of value, dividend payouts, growth potential, and momentum in the market.

Summary: Mega Financial Holding Co., Ltd. is a diverse holding company offering a range of financial services through its subsidiaries, including deposit-taking, debenture issuance, loan provision to enterprises, and brokerage, dealer, and insurance services.

Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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