Our opinion on the current state of KST

PSG Fin (previously PSG Konsult) is a well-established financial services group which grew out of PSG's stockbroking business and which now offers a wide range of financial services including financial planning, unit trusts, healthcare, short-term insurance and estate planning. PSG still holds 60% of the company. In its results for the six months to 31st August 2023 the company reported recurring headline earnings per share (HEPS) up by 21% and asset under management (AUM) up by 19% to R375,9bn. Gross written premiums rose by 12%. The company said, "...technology and infrastructure spend increased by 12% (these costs continue to be fully expensed), while our fixed remuneration cost grew by 12%". The share trades on an earnings multiple (P:E) of 18,92 - so it is not cheap, but it is a high-quality company that has demonstrated its ability to produce good returns even in an adverse economic climate. Technically, the share has been in an upward trend since March 2020 and is looking like good value. On 1st March 2022 PSG announced that it will be unbundling its holding of PSG Konsult (60,8%) into the hands of PSG shareholders to release value.