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» Thread for News on CSE and SL Economy
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» Little Known Facts !
TEXTURED JERSEY LANKA (TJL.N : LKR32.40) ------Softlogic Equity Research EmptyYesterday at 9:27 am by කිත්සිරි ද සිල්වා

» හීන්බන්ඩාගේ රැකියාව ඇසූ පසු පොලිස් නෝනලාට තරු පෙනුනා
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» DFCC.N0000 ( DFCC BANK PLC )
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» LLUB.N0000 (CHEVRON LUBRICANTS LANKA PLC)
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» HASU.N0000 (HNB ASSURANCE PLC)
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» EAST WEST PROPERTIES PLC (EAST.N0000)
TEXTURED JERSEY LANKA (TJL.N : LKR32.40) ------Softlogic Equity Research EmptyThu Apr 18, 2019 6:02 pm by Ethical Trader

» අසිරිමත් සුබ නව වසරකට ආසිරි !
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» Dividend Announcement
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» SEYLAN DEVELOPMENTS PLC (CSD.N0000)
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» East West properties
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» HHL.N0000 ( Hemas Holdings PLC)
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» Thread for News on Local and Foreign Politics
TEXTURED JERSEY LANKA (TJL.N : LKR32.40) ------Softlogic Equity Research EmptyTue Apr 09, 2019 11:25 am by Ethical Trader

» අනං මනං! #/+?.<>
TEXTURED JERSEY LANKA (TJL.N : LKR32.40) ------Softlogic Equity Research EmptyMon Apr 08, 2019 7:23 pm by ruwan326

» කිරි පිටි ගැන ඔබ මෙතෙක් නොදත් දේ
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» CONN.N0000
TEXTURED JERSEY LANKA (TJL.N : LKR32.40) ------Softlogic Equity Research EmptySun Apr 07, 2019 3:15 pm by NIRMALSG

» LION.N0000 (Lion Brewery Ceylon PLC)
TEXTURED JERSEY LANKA (TJL.N : LKR32.40) ------Softlogic Equity Research EmptySun Apr 07, 2019 8:52 am by ruwan326

»  5000 Post Milestone - Congratulations
TEXTURED JERSEY LANKA (TJL.N : LKR32.40) ------Softlogic Equity Research EmptyFri Apr 05, 2019 9:07 pm by Ethical Trader

» NTB.N0000 (NATIONS TRUST BANK PLC)
TEXTURED JERSEY LANKA (TJL.N : LKR32.40) ------Softlogic Equity Research EmptyFri Apr 05, 2019 1:37 pm by Ethical Trader

» Micro Finance
TEXTURED JERSEY LANKA (TJL.N : LKR32.40) ------Softlogic Equity Research EmptyFri Apr 05, 2019 12:14 pm by yellow knife

» REXP.N0000 ( RICHARD PIERIS EXPORTS PLC)
TEXTURED JERSEY LANKA (TJL.N : LKR32.40) ------Softlogic Equity Research EmptyFri Apr 05, 2019 7:40 am by serene

» COMB.N0000 ( COMMERCIAL BANK OF CEYLON PLC )
TEXTURED JERSEY LANKA (TJL.N : LKR32.40) ------Softlogic Equity Research EmptyThu Apr 04, 2019 6:53 pm by NIRMALSG

» PLC.N0000 ( People's Leasing and Fiance PLC)
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» VPEL.N0000 (VALLIBEL POWER ERATHNA PLC )
TEXTURED JERSEY LANKA (TJL.N : LKR32.40) ------Softlogic Equity Research EmptyWed Apr 03, 2019 3:40 pm by catseye

» SAMP.N0000 (SAMPATH BANK PLC)
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» Sinhala Cinema
TEXTURED JERSEY LANKA (TJL.N : LKR32.40) ------Softlogic Equity Research EmptyTue Apr 02, 2019 12:31 pm by yellow knife

» SEYB.N0000 ( SEYLAN BANK PLC )
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» LIOC.N0000 (Lanka IOC PLC)
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» NDB.N0000 (NATIONAL DEVELOPMENT BANK PLC)
TEXTURED JERSEY LANKA (TJL.N : LKR32.40) ------Softlogic Equity Research EmptyTue Apr 02, 2019 11:11 am by Backstage

» Plantation sector updates
TEXTURED JERSEY LANKA (TJL.N : LKR32.40) ------Softlogic Equity Research EmptyMon Apr 01, 2019 2:13 pm by nihal123

» What to Analyse
TEXTURED JERSEY LANKA (TJL.N : LKR32.40) ------Softlogic Equity Research EmptyMon Apr 01, 2019 8:00 am by yellow knife

» MTD WALKERS - KAPI
TEXTURED JERSEY LANKA (TJL.N : LKR32.40) ------Softlogic Equity Research EmptyMon Apr 01, 2019 5:01 am by NIRMALSG

» VONE.N0000 (VALLIBEL ONE PLC)
TEXTURED JERSEY LANKA (TJL.N : LKR32.40) ------Softlogic Equity Research EmptySun Mar 31, 2019 6:09 pm by lanka

» In the Meantime, Within Our Shores !
TEXTURED JERSEY LANKA (TJL.N : LKR32.40) ------Softlogic Equity Research EmptySun Mar 31, 2019 11:22 am by කිත්සිරි ද සිල්වා

» PB. N0000 (People's Bank)
TEXTURED JERSEY LANKA (TJL.N : LKR32.40) ------Softlogic Equity Research EmptyFri Mar 29, 2019 5:33 pm by yellow knife

» Obituary Notice.
TEXTURED JERSEY LANKA (TJL.N : LKR32.40) ------Softlogic Equity Research EmptyFri Mar 29, 2019 5:07 pm by කිත්සිරි ද සිල්වා

» Re: Financial reports Q1-2019
TEXTURED JERSEY LANKA (TJL.N : LKR32.40) ------Softlogic Equity Research EmptyFri Mar 29, 2019 7:45 am by serene

» Save Wilpattu !
TEXTURED JERSEY LANKA (TJL.N : LKR32.40) ------Softlogic Equity Research EmptyThu Mar 28, 2019 1:58 pm by puliyanam

» Help him Today, so he can help another Tomorrow
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» HNB.N0000 ( Hatton National Bank PLC)
TEXTURED JERSEY LANKA (TJL.N : LKR32.40) ------Softlogic Equity Research EmptyTue Mar 26, 2019 6:18 am by pjrngroup

» අපිට විතරද පායන්නේ ?
TEXTURED JERSEY LANKA (TJL.N : LKR32.40) ------Softlogic Equity Research EmptyMon Mar 25, 2019 9:06 pm by malanp

» Tourism sector
TEXTURED JERSEY LANKA (TJL.N : LKR32.40) ------Softlogic Equity Research EmptyMon Mar 25, 2019 5:47 pm by NIRMALSG

» Oman's Oil and Gas Minister Dr. Al Ruhmy arrives in Lanka.
TEXTURED JERSEY LANKA (TJL.N : LKR32.40) ------Softlogic Equity Research EmptySun Mar 24, 2019 12:11 pm by Ethical Trader

» රෝගීන් වෙනුවෙන් කැප වන සෞඛ්‍ය සේවාවක් වෙනුවෙන්.....
TEXTURED JERSEY LANKA (TJL.N : LKR32.40) ------Softlogic Equity Research EmptyTue Mar 19, 2019 9:34 am by AjithR

» JEWS OF SRI LANKA: AN UNTOLD STORY
TEXTURED JERSEY LANKA (TJL.N : LKR32.40) ------Softlogic Equity Research EmptyTue Mar 19, 2019 9:22 am by කිත්සිරි ද සිල්වා

» How Small We are in the universe
TEXTURED JERSEY LANKA (TJL.N : LKR32.40) ------Softlogic Equity Research EmptyTue Mar 19, 2019 7:29 am by nihal123

» ඉස්සරහට අපි පරදින එකනම් ෂුවර් – ධම්මික ක්‍රිකට් ගැන කතා කරයි
TEXTURED JERSEY LANKA (TJL.N : LKR32.40) ------Softlogic Equity Research EmptyFri Mar 15, 2019 2:59 pm by nuwanmja

» HAYL.N0000 Hayleys PLC
TEXTURED JERSEY LANKA (TJL.N : LKR32.40) ------Softlogic Equity Research EmptyThu Mar 14, 2019 2:46 pm by yellow knife

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TEXTURED JERSEY LANKA (TJL.N : LKR32.40) ------Softlogic Equity Research

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TEXTURED JERSEY LANKA (TJL.N : LKR32.40) ------Softlogic Equity Research Empty TEXTURED JERSEY LANKA (TJL.N : LKR32.40) ------Softlogic Equity Research

Post by CSE.SAS on Tue Nov 03, 2015 4:39 pm

Click the below link to download the Report of TEXTURED JERSEY LANKA (TJL.N : LKR32.40) ------Softlogic Equity Research

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Net earnings up c.66% YoY to LKR468.4 mn whilst net margin expanded to 11.7% in 2QFY16.The capacity expansions reflecting the improved sales volume growth as well as margin expansion and economies of scale practiced has aided the bottom line to grow by 66.2% YoY to LKR468.4 mn. NP margins widened to 11.7% in 2QFY16 against 8.2% in the comparative quarter of the previous year. Moreover the company further expects to expand its valued added segment’s revenue contribution beyond c.26% in FY16E and FY17E with hopes on touching synthetic fabric manufacturing market which could aid immensely to maintain TJL’s prevailing NP margins.

Moreover TJL being debt-free till 4QFY14, recorded a debt to equity ratio of c.3% in the quarter under consideration for the purpose of managing and optimizing current cash flows and investments. TJL being a BOI venture, was tax exempted until September 2016 while being entitled to 15% tax payment for 8 years thereafter.

A revenue growth of c.16% YoY to LKR4,011.3 mn during 2QFY16. The capacity additions through consolidation of Quenby Lanka Prints and Ocean India which took place recently reinforced TJL in yielding a c.16% YoY revenue growth to LKR4,011.3 mn during the quarter under consideration. The acquisition of Quenby Lanka Prints which completed by 1st June 2015 has improved the sales of value added products during the quarter whilst creating a platform for synergies. However with further capacity addition of Ocean India (36 MT/day), TJL is expected to touch synthetic and printed fabric manufacturing which would expand TJL’s value added product portfolio to 25%-30% levels to result an improved top line growth during FY17E and FY18E. In addition the company is hoping to further strengthen its clientele by catering to many new high-end emerging brands.

Gross profit margin grew c.572 bps YoY to 15.5% while gross profit increased 83.7% YoY in 2QFY16. The improved margins coupled with the efficient sourcing synergies and the tight cost management structure followed enabled TJL to achieve a gross profit of LKR 622.5 mn in 2QFY16. In addition, the lower global cotton prices averaging USD70.5 for the quarter also favored to curtail cost of sales growth (though inclined c.9% YoY).

EBIT grew by 80.3% YoY to LKR448.8 mn with a c.398.6 bps YoY growth in margin. TJL saw steady growth at operating level where operating profits grew significantly by 80.3% YoY to LKR448.8 mn in 2QFY16, chiefly led by robust gross margin expansion and backed by improved operating efficiencies. TJL recorded an EBIT margin of 11.2% in 2QFY16 cf. 7.2% in 2QFY15 resulting a c.398.6 bps YoY growth.

Moreover total OPEX escalated c.97% YoY chiefly led by the increased administration expenses which rose 110.6% YoY on the back of catering the planned expansion systems, processes and infrastructure of Quenby Lanka Prints and Ocean India (Pvt.) Ltd to aid group’s long term development plans.

TJL’s net finance income for the quarter dipped c.15% YoY to LKR14.0 mn mainly on the back of increase in finance costs by c.272% YoY to LKR5.0 mn during 2QFY16.

Impact on GSP plus will also benefit to widen the margins further for TJL once the concessions are being finalized. Primarily as a result of the expected cost savings from the multi fuel boiler plant and optimal usage of newly added capacity, we forecast a 21.5% YoY bottom-line growth for TJL’s net earnings for FY16E to LKR1,618.5 mn and TJL’s FY17E net profit to LKR1,877.6 mn (up 16.0% YoY). Thereby the share trades at 13.9x forecast FY16E net profit and 12.0x forecast FY17E earnings offering a dividend yield of 4.7% and 5.4% for FY16E and FY17E respectively. Moreover ROEs are expected to be in the range of 21.3%-22.8% for FY16E to FY17E. Therefore we maintain BUY.

CSE.SAS

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