LIOC
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LIOC – Earnings Release

1Q16 cf.  1Q15 (yoy) The Company top line declined by c. 19.0% yoy to LKR17.4b Cost of sales declined by c. by 16.0% yoy to LKR16.5b The Operating Profit declined by c. 93.0% yoy to LKR93.6mn Finance Income increased by c. 13.0% yoy to LKR180.1mn Tax Expense decreased by c. 64.0% yoy to LKR80.7mn Profit […]

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The Road to Becoming an Energy Independent Country: Can We Deliver?
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The Road to Becoming an Energy Independent Country: Can We Deliver?

Sri Lanka annually imports 2 MMT of crude oil, 4 MMT of refined petroleum products and 2.25 MMT of coal. This costs approximately 5 billion USD and covers 44% of the energy requirements. It also accounts to 25% of the import expenditure and almost 50% of the total export income. As a result, Sri Lanka’s […]

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Ceylon Cold Stores PLC
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Ceylon Cold Stores PLC – (CCS) – Q1 FY 16 – Take Profits

A great quarter all around- but too much built into share price: Take profits Valuation Summary Trading Snapshot ASPI Vs. Share Price Movement BRS Research CCS’s recurring EPS for Q1 FY 16 grew 84% YoY on the back of successful operations streamlining it had been implementing. EPS was LKR 5.78 where the top line grew […]

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Sampath Bank PLC
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Sampath Bank PLC – (SAMP) – Q2 FY 15 Preview – BUY

Outlook improved but capital is a concern: BUY Valuation Summary Trading Snapshot EPS BRS Research We expect SAMP to post a subdued loan growth of 1.8% in Q2 FY 15 (Q1 FY 15 – 2.3%), triggered by slower-than-expected private sector credit growth. Declining rates, change in loan mix together with slow credit growth would add […]

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Ceylon Cold Stores
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Ceylon Cold Stores – Earnings Release Update 1Q16

Ceylon Cold Stores – CCS.N  (1Q16) CCS top line expanded by c. 16.0% yoy to LKR7.8b for 1Q16, mainly on the back of sales volume growth of carbonated drinks and ice cream. Cost of sales only increased by c. 13.0% yoy to LKR6.6b, owing to the reduction in costs of electricity and fuel mainly. Consequently, […]

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DANKOTUWA PORCELAIN PLC (DPL.N0000) – RIGHTS ISSUE Update
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DANKOTUWA PORCELAIN PLC (DPL.N0000) – RIGHTS ISSUE Update

DANKOTUWA PORCELAIN PLC – RIGHTS ISSUE UPDATE The Company has announced a Rights Issue to raise funds to, To Modernize the Plant To settle short term-term loans. The company expects to raise c. LKR722.5mn form the issue. Proposed Rights Issue To issue 5 new ordinary shares for every 4 ordinary shares. Right price – LKR8.0 […]

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John Keells Holdings PLC
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John Keells Holdings PLC – (JKH) – Q1 FY 16 Preview – BUY

We expect Consumer Foods & Retail (CF & R) to continue to push above expectations with restructuring of the supermarkets and the expanded product mix. Although leisure sector would contribute the highest overall to bottom line in FY 2016E, this may not be in Q1 FY 16 given the seasonality in the sector earnings. We […]

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Lanka Walltiles PLC
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Lanka Walltiles PLC – (LWL) – Q4 FY 15 – BUY

Upside continues despite the plantation woes: BUY Recurring PAT for Q4 FY 15 grew 48% YoY to LKR ~492mn propped by top line growth in tiles & associated items (+26.5% YoY) and a 50% reduction in finance cost to LKR ~63mn. However, a reduction in income tax by ~30% to LKR 109mn also aided bottom […]

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Ship building headwinds still continue –  (DOCK.N0000) HOLD
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Ship building headwinds still continue – (DOCK.N0000) HOLD

DOCK’s net profit was flat rising 1.4% YoY to LKR 134mn in Q1 FY 15. This resulted in an EPS of LKR 1.87 (+2.7%). Top line for the quarter however declined 13.2% to LKR 3.67bn due to timing differences in revenue recognition attributable to ship building segment. During FY 2014, DOCK’s revenue and profitability declined […]

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Colombo Dockyards PLC
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Colombo Dockyards PLC – Interim Update Q1 FY 15

Quarterly revenue decreased by 13% compared to corresponding previous quarter while gross margins increased to 14.12% from 11.5% QoQ. Other income portion also reduced by 13% while distribution and administrative cost increased marginally. However with improved gross profit, net profit managed to gain 1.4% more compared to corresponding previous quarter. Investment Considerations During Q1FY15, all […]

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Investment on Growing Consumption
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Investment on Growing Consumption

Snapshot Despite low motorization rate in Sri Lanka than many developing countries, motor sector has been growing at a rapid phase in recent times. The motor sector has a strong demand due to positive trend in increasing per capita GDP which resulted in increased consumption level of people leading to a proportionate increase in the […]

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KGAL Announces LKR 45 per share Dividend
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KGAL Announces LKR 45 per share Dividend

Kegalle Plantations PLC made a dividend announcement of LKR 45 per share on 10th July 2015. The scale of dividend payout will have material implications on the company’s Financials and investment perspective. The dividend payout will result in company paying out LKR 1.1 billion to its equity owners. It amounts to 31% of Total Equity, […]

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Lanka Floortiles PLC
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Lanka Floortiles PLC – (TILE) – Q4 FY 15 – BUY

Subsidiaries preserve overall margins Lower CoGs, finance costs and higher contribution from PARQ made TILE’s Q4FY15’s EPS rise 53% to LKR 5.78. PARQ has been a consistent contributor to TILE’s performance in FY 2015, pushed by subsidiary Swisstek Aluminum. PARQ contributed LKR 111mn for FY 2015 (+112.6% YoY). However, revenue for the year was a […]

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Renewal of US GSP: What It Offers Sri Lankan Exporters
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Renewal of US GSP: What It Offers Sri Lankan Exporters

Pic Caption: President Obama at the signing ceremony for the Trade Promotion Authority and Trade Preferences Extension legislation    President Obama signed the ‘Trade Preferences Extension Act of 2015’ on 29 June 2015 authorizing the renewal of the US GSP scheme, almost 2 years after it expired. The scheme, instituted in 1974 and renewed periodically […]

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Sunshine Holdings PLC
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Sunshine Holdings PLC – (SUN.N0000) – Q4 FY 15 – BUY

Sunshine Holdings PLC (SUN: LKR 48.00) Energy sector adds to growth story: BUY SUN recorded a recurring net profit of LKR 1.03bn for FY 2015 with an EPS of LKR 4.04. Net profit plunged 7.1% YoY to LKR 1.3bn during FY 2015. The poorer than expected performance from the plantation sector and the dip in […]

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