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LWL Corporate Update - STRONG BUY - 20 09 16 EmptyYesterday at 8:13 pm by Rana

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» Little Known Facts !
LWL Corporate Update - STRONG BUY - 20 09 16 EmptyYesterday at 9:27 am by කිත්සිරි ද සිල්වා

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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)
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» 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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» CONN.N0000
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» LION.N0000 (Lion Brewery Ceylon PLC)
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»  5000 Post Milestone - Congratulations
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» REXP.N0000 ( RICHARD PIERIS EXPORTS PLC)
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» COMB.N0000 ( COMMERCIAL BANK OF CEYLON PLC )
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» PLC.N0000 ( People's Leasing and Fiance PLC)
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» VPEL.N0000 (VALLIBEL POWER ERATHNA PLC )
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» SAMP.N0000 (SAMPATH BANK PLC)
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» Sinhala Cinema
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» SEYB.N0000 ( SEYLAN BANK PLC )
LWL Corporate Update - STRONG BUY - 20 09 16 EmptyTue Apr 02, 2019 11:23 am by Backstage

» LIOC.N0000 (Lanka IOC PLC)
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» NDB.N0000 (NATIONAL DEVELOPMENT BANK PLC)
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» Plantation sector updates
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» What to Analyse
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» MTD WALKERS - KAPI
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» VONE.N0000 (VALLIBEL ONE PLC)
LWL Corporate Update - STRONG BUY - 20 09 16 EmptySun Mar 31, 2019 6:09 pm by lanka

» In the Meantime, Within Our Shores !
LWL Corporate Update - STRONG BUY - 20 09 16 EmptySun Mar 31, 2019 11:22 am by කිත්සිරි ද සිල්වා

» PB. N0000 (People's Bank)
LWL Corporate Update - STRONG BUY - 20 09 16 EmptyFri Mar 29, 2019 5:33 pm by yellow knife

» Obituary Notice.
LWL Corporate Update - STRONG BUY - 20 09 16 EmptyFri Mar 29, 2019 5:07 pm by කිත්සිරි ද සිල්වා

» Re: Financial reports Q1-2019
LWL Corporate Update - STRONG BUY - 20 09 16 EmptyFri Mar 29, 2019 7:45 am by serene

» Save Wilpattu !
LWL Corporate Update - STRONG BUY - 20 09 16 EmptyThu Mar 28, 2019 1:58 pm by puliyanam

» Help him Today, so he can help another Tomorrow
LWL Corporate Update - STRONG BUY - 20 09 16 EmptyThu Mar 28, 2019 7:49 am by serene

» HNB.N0000 ( Hatton National Bank PLC)
LWL Corporate Update - STRONG BUY - 20 09 16 EmptyTue Mar 26, 2019 6:18 am by pjrngroup

» අපිට විතරද පායන්නේ ?
LWL Corporate Update - STRONG BUY - 20 09 16 EmptyMon Mar 25, 2019 9:06 pm by malanp

» Tourism sector
LWL Corporate Update - STRONG BUY - 20 09 16 EmptyMon Mar 25, 2019 5:47 pm by NIRMALSG

» Oman's Oil and Gas Minister Dr. Al Ruhmy arrives in Lanka.
LWL Corporate Update - STRONG BUY - 20 09 16 EmptySun Mar 24, 2019 12:11 pm by Ethical Trader

» රෝගීන් වෙනුවෙන් කැප වන සෞඛ්‍ය සේවාවක් වෙනුවෙන්.....
LWL Corporate Update - STRONG BUY - 20 09 16 EmptyTue Mar 19, 2019 9:34 am by AjithR

» JEWS OF SRI LANKA: AN UNTOLD STORY
LWL Corporate Update - STRONG BUY - 20 09 16 EmptyTue Mar 19, 2019 9:22 am by කිත්සිරි ද සිල්වා

» How Small We are in the universe
LWL Corporate Update - STRONG BUY - 20 09 16 EmptyTue Mar 19, 2019 7:29 am by nihal123

» ඉස්සරහට අපි පරදින එකනම් ෂුවර් – ධම්මික ක්‍රිකට් ගැන කතා කරයි
LWL Corporate Update - STRONG BUY - 20 09 16 EmptyFri Mar 15, 2019 2:59 pm by nuwanmja

» HAYL.N0000 Hayleys PLC
LWL Corporate Update - STRONG BUY - 20 09 16 EmptyThu Mar 14, 2019 2:46 pm by yellow knife

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LWL Corporate Update - STRONG BUY - 20 09 16

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LWL Corporate Update - STRONG BUY - 20 09 16 Empty LWL Corporate Update - STRONG BUY - 20 09 16

Post by CSE.SAS on Tue Oct 04, 2016 8:51 pm

LANKA WALLTILES PLC

Initiating Coverage - STRONG BUY

Current Price: LKR 106.3 Fair Value: LKR 170.0

“Undervalued Wall-tile manufacturer”

Click the below link to download the Report of FC Research - LWL Corporate Update - STRONG BUY - 20 09 16

[You must be registered and logged in to see this link.]

Lanka Walltiles PLC, is a key player in the domestic construction subsector with a market share of 45%, together with its subsidiary/ associate companies offer a product portfolio ranging from wall-tiles, floor-tiles to aluminium products. LWL’s earnings is expected to grow at a CAGR of c.13% FY16-FY19E reaching c.LKR 1.8Bn in FY18E and c.LKR 1.9Bn in FY19E. LWL is expected to grow its earnings mainly driven by the increased demand deriving from the domestic market coupled with the benefit of comparatively lower production costs. FC Research expect LWL to provide a return of 78% at LKR 170.0. STRONG BUY

Domestic demand to boost revenue: LWL’s topline is expected to grow at a CAGR of c.8% over FY16-FY19E to reach c.LKR 18.4Bn and c.LKR 19.8Bn in FY17E and FY18E respectively mainly driven by the increased demand stemming from the domestic construction subsector which is witnessing a boom in the residential property and real estate resultant to the rise in the urbanization that stands at 18% at present coupled with increased disposable income levels.

Improved GP, EBIT and NP margins: Cost efficacies arising from the investment into plant modernization, economies of scale deriving from increased volumes coupled with comparatively lower commodity prices to reduce the overall cost of sales thus record it at c.LKR 13.5Bn in FY18E with a CAGR of 8% over FY16-FY18E in comparison to the revenue of c.LKR 18.4Bn (CAGR of c.9% over FY16-FY18E) leading to an increase in LWL earnings to c.LKR 1.8Bn in FY18E amidst improved GP, EBIT and NP margins of c.32%, c.19% and c.13% respectively.

LWL to provide 78% return over 18-months period: FC Research expect LWL to achieve a fair value of LKR 170.0 providing a total return of 78% (Dividend yield 18%) over 18-month period. [DCF based LKR 186.4 and PER based LKR 146.1]

Risks associated: Changes in government policy, competition from less costly imports and fluctuations in exchange rates are the risks exposed by LWL.

Disclosure on Shareholding:

First Capital Group and its affiliates hold 433,516 shares in LWL. Neither First Capital Group nor its affiliates have traded in the shares in the three trading days prior to this document, and will not trade in the shares for three trading days following the issue of this document.



CSE.SAS

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