This report is an updated version of the report published on 12 May 2026 at Closing Market Price

Kina Securities Limited (ASX: KSL)

 Kina Securities Limited (ASX: KSL) operates as a diversified financial services company. KSL is based out of Papua New Guinea and provides share brokerage, fund administration, investment management, and other relevant services.

Recommendation Rationale – SELL at AUD 1.350

• Trading Near Resistance Levels:KSL’s share price is trading close to its R1 level, recommended on 02 April 2026. Therefore, share price can face resistance at the current levels.
• Increase in Impairment losses: KSL’s impairment losses increased to PGK 38.97 million in FY25 from PGK 18.2 million in FY24, while the total loss allowance rose to PGK 93.4 million from PGK 72.6 million. The higher provisioning reflects increasing pressure across the loan portfolio and could impact earnings quality if borrower stress or credit deterioration persists.
• Lower Cash Balance: KSL’s cash and cash equivalents decreased to PGK 365.6 million at the end of FY25 from PGK 529.8 million in FY24. The decline was mainly driven by net investing cash outflows of PGK 206.2 million, largely related to investments in securities, as well as dividend payments and lease liabilities, which more than offset operating cash inflows of PGK 116.8 million.
• Emerging Risks: Kina Securities Limited is exposed to credit risk, with asset quality dependent on borrower performance and broader economic conditions in Papua New Guinea, which may impact loan impairments and earnings stability. The Company also faces funding and liquidity risk, given its reliance on customer deposits and wholesale funding to support balance sheet growth.

KSL Daily Chart

Daily Technical Chart, Data Source: REFINITIV

Valuation Methodology:  Price/ Book Value Approach (FY December'26E) (Illustrative)

Considering the higher expected credit losses, rising operating expenses, loan book concentration in Papua New Guinea, lower cash balance, higher provisioning pressure on earnings quality, etc., the stock may trade at a slight discount to its peers. For valuation, peers such as Latitude Group Holdings Ltd (ASX: LFS), Liberty Group (ASX: LFG), and Judo Capital Holdings Ltd (ASX: JDO) have been considered.

Considering that the stock has reached its R1 level, macroeconomic uncertainty, current trading level, and risks associated, the stock can face consolidation at the current levels. Hence, a ‘Sell’ recommendation is given on the stock at the closing price of AUD 1.350, as of 12 May 2026

Markets are trading in a highly volatile zone currently due to certain macro-economic issues and prevailing geopolitical tensions. Therefore, it is prudent to follow a cautious approach while investing.

Note 1: Past performance is neither an indicator nor a guarantee of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is 12 May 2026. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.    

Note 4: Kalkine reports are prepared based on the stock prices captured either from REFINITIV or Trading View. Typically, REFINITIV or Trading View may reflect stock prices with a delay which could be a lag of 25-30 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice.

Technical Indicators Defined: -

Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.

Resistance: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Resistance 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Resistance 2 may act as the crucial resistance level for the stock.

Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.