LPI Capital Bhd's business model of growing revenues at the calculated risk should sustain its earnings growth of 14-27 per cent over the next two years, says Kenanga Research.

In its research note, Kenanga said LPI offered a unique distribution channel which enabled the group to tap into Public Bank Bhd's (PBB) branch network.

'Its faster-than-industry's organic growth is sustainable through itsability to tap into PBB clientele.

'We see LPI earnings have room to grow with PBB continuing capture market share,' it said.

LPI yesterday reported a 15.2 per cent increase in pre-tax profit to RM132.172 million for the nine-month period ended Sept 30, 2010 compared with RM114.815 million in the preceding year corresponding period.

Total revenue for the period under review rose by 9.7 per cent to RM640.462 million from RM583.878 million previously. - Bernama