Common equity tier 1 (CET1) and leverage ratios continue to easily meet regulatory requirements and, helped by higher profits, net asset value (NAV) per share grew 11pc year-on-year to $14.44.
That NAV per share figure ultimately underpins the value case for the stock, since Standard Chartered’s shares trade at a 34pc discount to book value. In effect, investors are getting one dollar of assets at a cost of 63 cents.
Under such circumstances, the share buyback programme makes perfect sense, and it should be noted that Asian peer HSBC (HSBA) trades on just less than one times book value, a rating almost 50pc higher than the one investors are currently affording Standard Chartered.
Questor says: buy
Ticker: STAN
Share price: 686.8p
Update: Kitwave
A mixed set of interim results after May’s trading alert leaves shares in Kitwave (KITW:AIM) pretty much back where they were at the time of our initial study, which is a bit frustrating as they looked set to kick on to new all-time highs back in spring.
However, the food and drink wholesaler still looks decent value on 12 times forward earnings with an estimated dividend yield of 3.6pc, so we shall therefore look to tough out this bout of indigestion.
Increased investment, higher interest costs after a trio of acquisitions in 2021, 2022 and 2023, and the dampening effect of the wet British weather upon the hospitality trade all weighed upon first-half earnings. Management is sticking to its guidance for the full year to October, but the increased second-half weighting also increases the risk of disappointment.
We are therefore on alert, but the weather’s impact could be transitory. The investments should pay off in terms of operational efficiencies and increased capacity, while the acquisitions should supplement the existing underlying momentum within the business.
The combination of the scope to grow in a fragmented market, cost efficiencies from a new distribution site and a lowly valuation all remain appealing over the long term for a company that supplies independent convenience stores, as well as cafés, restaurants, schools and care homes.
Questor says: hold
Ticker: KITW
Share price: 309.5p
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