Give us the margin of safety

I dont think its fair to value HF against the Banks...They are so different in so many ways.

Most banks offer loans with a maximum repayment period of 5yrs while HF mortgages are 10-20 yrs so in-terms of liquidity HF is so illiquid with most of its fund tied in long term loans.

In-terms of profitability HF gains alot from fluctuations in CBR since 90% of Mortgages in the country are in variable rates as opposed to fixed rate...so they can vary their mortgage rates at will the only downside is the rise in cost of funds in the market.

The only challenge HF has is in sourcing for Cheap funds which currently is hard to get.Their current accounts can not be of any use given its high turnover of funds unless now they work with international banks which might expose them to foreign exchange risks.

They are making good steps on this

In May , they signed a $10 million (Sh850 million) bilateral term loan deal with London-based Ghana International Bank Plc. (GHIB)

They also recently signed a similar financing agreement for Sh2.2 billion with the European Investment Bank (EIB) to finance SMEs in the construction industry.

... and more are in the pipeline

The foreign currency risk is zeroed out by lending the foreign currency funds in foreign currency. … and fyi, many SMEs are demanding USD loans because they are cheaper than KES loans

All these funds will have a positive impact on H2 results.

I reiterate, HF is a diamond in the rough. Highly undervalued and with great potential

Interesting article on KE real estate - www.ventures-africa.com/...ate-sector-boom-or-doom/

And yet again HFCK comes out the loser in terms of growth..

All you investors looking for mortgage exposure why not invest in Kenyas leading mortgage provider S&L Ltd