Micha Avni realizes in the peninsula – the capital market

Micha Avni Founder

Peninsula
-0.7%

Base:316

opening:310

Tall:316.7

low:310

change:150,634

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Has in recent years managed to increase the volume of activity and capital of the company mainly through the combination of Meitav Dash as a dominant partner (and later controls 9 in the company, along with capital issues and debt issues. The activity itself is growing, although the last year was very lukewarm.) banker.

And yet – Peninsula is one of the dominant companies in the market, with a very strong back – Meitav Dash. Avnei exercised NIS 7.2 million in shares on Thursday – 2.4 million shares at a price of NIS 3.12 per share. This is a not bad relative price, only 12% away from the stock’s peak. A price that expresses a company value of NIS 740 million. At the beginning – about five years ago – when Fininsola entered the stock market through a stock market skeleton, the market price was about NIS 1-1.2 per share.

Avni actually sold about 1% of the company’s shares and now owns about 7.93%. The drop below 8% is important. According to the shareholders ‘agreement between the controlling shareholder in the company, Meitav Dash and Micha Avni, the shareholders’ agreement has expired and from now on, Mr. Avni, a controlling shareholder in the company, can no longer be seen jointly with Meitav Dash.

Peninsula’s profit in the third quarter fell to NIS 4.6 million, compared with NIS 8.2 million in the corresponding quarter in 2019. Revenues from financing decreased by 25% to NIS 16.2 million. In the first nine months of the year, revenues fell to NIS 56 million, compared with NIS 58 million, and bottom-line profit fell to NIS 18.7 million, compared with NIS 24 million.

Peninsula recently acquired the credit portfolio for the diamond sector from Union Bank. This may contribute to significant profits. The company’s credit volume amounts to about NIS 800-850 million and the diamond portfolio will increase it by about 25%.

In any case, even after the increase in question and even if we assume a better utilization of the company’s capital for the purpose of increasing financing (capital derived mainly from IPOs), the potential profits, even if doubled, will not really explain a value of NIS 740 million, while most financing companies Non-banks are trading at a single-digit or double-digit profit multiplier.

Avni probably understands this best of all. This is his business. So maybe this is the real reason for the sale – at such a price worth realizing.