The Investor Sentiment - Equity and investments forum for Sri Lankans
Search
 
 

Display results as :
 


Rechercher Advanced Search

Latest topics
» Thread for News on CSE and SL Economy
Today at 5:54 pm by serene

» Thread for News on Local and Foreign Politics
Today at 2:09 pm by The Invisible

» බඩගිනී
Today at 9:20 am by Ethical Trader

» Thread for News on International Markets
Yesterday at 11:21 am by The Invisible

» අනං මනං! #/+?.<>
Sun Dec 09, 2018 11:19 am by lanka

»  Rajgama heroes !
Sun Dec 09, 2018 9:43 am by කිත්සිරි ද සිල්වා

» BFN - Orient Finance
Fri Dec 07, 2018 6:05 pm by nihal123

» BOPL.N0000 (Bogawantalawa Tea Estates PLC)
Fri Dec 07, 2018 7:35 am by The Invisible

» Sri Lanka economic slowdown trims company profits, bank earnings grow
Thu Dec 06, 2018 3:04 pm by nihal123

» JINS.N0000 ( Janashakthi Insurance PLC)
Thu Dec 06, 2018 10:05 am by The Invisible

» Better Than Bitcoin
Thu Dec 06, 2018 9:42 am by කිත්සිරි ද සිල්වා

» AAIC.N0000
Thu Dec 06, 2018 8:19 am by serene

» CFVF - First Capital
Wed Dec 05, 2018 1:39 pm by The Invisible

» Hutchison, Etisalat complete mobile networks merger in Sri Lanka
Wed Dec 05, 2018 9:30 am by The Invisible

» Oil prices surge more than 5-pct
Mon Dec 03, 2018 1:53 pm by Ethical Trader

» Dividend Announcement
Mon Dec 03, 2018 11:50 am by lanka

» Trading Journal
Mon Dec 03, 2018 11:33 am by lanka

» CCS.N0000 ( Ceylon Cold Stores)
Mon Dec 03, 2018 10:03 am by The Invisible

» HAYC - Haycarb
Sun Dec 02, 2018 3:04 pm by xmart

» In the Meantime, Within Our Shores !
Sat Dec 01, 2018 4:36 pm by කිත්සිරි ද සිල්වා

» LGL Laugfs Gas
Fri Nov 30, 2018 9:43 am by The Invisible

» Oil prices gain as investors eye Fed relief on interest rates
Fri Nov 30, 2018 9:41 am by The Invisible

» ලැයිස්තුගත සමාගම් 8 ක් කොටස් ගනුදෙනු තහනම් වීමේ අවදානමක
Thu Nov 29, 2018 11:34 am by nihal123

» අපි තනිකර ලෝකය දිව යන්නේ
Thu Nov 29, 2018 11:32 am by කිත්සිරි ද සිල්වා

» NDB.N0000 (NATIONAL DEVELOPMENT BANK PLC)
Thu Nov 29, 2018 10:32 am by The Invisible

» Orient Finance PLC--(Share_Valuation_Report)
Thu Nov 29, 2018 7:17 am by yellow knife

» කිඹුලා
Mon Nov 26, 2018 7:20 am by Lalinda

» Sandos' Vs Creators'
Sun Nov 25, 2018 1:17 pm by කිත්සිරි ද සිල්වා

» Tourists Arrival
Sat Nov 24, 2018 10:07 am by කිත්සිරි ද සිල්වා

» බිරිඳ
Fri Nov 23, 2018 11:49 am by Ethical Trader

» ගෙයක් හදන්නද ඉන්නේ
Fri Nov 23, 2018 5:55 am by Brave Heart

» --- සමෝසා වෙළෙන්දා -------
Fri Nov 23, 2018 5:51 am by Brave Heart

» විකුණුම්කරු
Sun Nov 18, 2018 2:10 pm by Ethical Trader

» Real Estate Market in Sri Lanka- A booming Industry or a Bubble?
Sun Nov 18, 2018 12:00 am by xmart

» Will YOU VOTE for ME if I run for SL PRESIDENCY?
Sat Nov 17, 2018 11:43 am by CK

» *කොට්ටේ තරණය කිරීම*
Fri Nov 16, 2018 6:25 pm by Ethical Trader

» COMB.N0000 ( COMMERCIAL BANK OF CEYLON PLC )
Wed Nov 14, 2018 9:20 pm by pjrngroup

» DIPD.N0000 (Dipped Products)
Wed Nov 14, 2018 7:18 am by The Invisible

» SAMP.N0000 (SAMPATH BANK PLC)
Wed Nov 14, 2018 7:16 am by The Invisible

» TAFL - Three Acre Farms
Wed Nov 14, 2018 7:14 am by The Invisible

» RCL - Royal Ceramics
Wed Nov 14, 2018 7:12 am by The Invisible

» HAYL.N0000 Hayleys PLC
Wed Nov 14, 2018 7:08 am by The Invisible

» How to trade Stock profitably?
Tue Nov 13, 2018 11:55 am by indramal

» What are investing methods in Sri Lanka?
Tue Nov 13, 2018 6:39 am by indramal

» Thread for General News Local/Foreign
Mon Nov 12, 2018 7:57 am by serene

» Anybody invest New York or Landon Stock Exchange?
Sat Nov 10, 2018 8:53 am by කිත්සිරි ද සිල්වා

» JKH.N0000
Fri Nov 09, 2018 10:49 am by ruwan326

» WATA - Watawala
Fri Nov 09, 2018 10:22 am by The Invisible

» Asian markets rally as investors see positive in US gridlock
Fri Nov 09, 2018 8:02 am by serene

» CSE RISE , RIDING ETHICALLY
Wed Nov 07, 2018 5:53 am by pjrngroup

December 2018
SunMonTueWedThuFriSat
      1
2345678
9101112131415
16171819202122
23242526272829
3031     

Calendar Calendar

Disclaimer


Information posted in this forum are entirely of the respective members' personal views. The views posted on this open online forum of contributors do not constitute a recommendation buy or sell. The site nor the connected parties will be responsible for the posts posted on the forum and will take best possible action to remove any unlawful or inappropriate posts.
All rights to articles of value authored by members posted on the forum belong to the respective authors. Re-using without the consent of the authors is prohibited. Due credit with links to original source should be given when quoting content from the forum.
This is an educational portal and not one that gives recommendations. Please obtain investment advises from a Registered Investment Advisor through a stock broker

FC Research : TJL - Earnings Update - HOLD - 09 06 17

Go down

FC Research : TJL - Earnings Update - HOLD - 09 06 17

Post by CSE.SAS on Wed Jun 14, 2017 2:37 pm

TEEJAY LANKA PLC

Earnings Update – HOLD

Current Price: LKR 41.0 Fair Value: LKR 47.0

“Cotton absorbing the Margins”

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

Earnings Performance

Earnings dip by 40%YoY: TJL’s earnings for 4QFY17 was recorded at LKR 494Mn with a dip of 40%YoY in comparison to LKR 825Mn recorded in 4QFY16 while QoQ basis earnings saw a marginal increase of 4% in comparison to LKR 473Mn recorded in 3QFY17. For FY17, TJL’s earnings was recorded at LKR 1.96Bn as opposed to LKR 2.17Bn with a dip of 10%YoY.

Marginal growth in Revenue: During the 4QFY17, TJL’s topline registered a marginal growth of 6%YoY to record at LKR 5.8Bn amidst the continuing uncertainty prevailed in global market conditions coupled with softer demand. During the FY17 period TJL’s topline registered a YoY growth of 24% to reach LKR 22.2Bn in comparison to LKR 17.2Bn recorded in the previous year.

Cost of Sales increases 17%: Amidst the continuous upward movement in cotton prices impacted the increase in Cost of Sales by 17%YoY to record at LKR 5.1Bn during the 4QFY17 as opposed to LKR 4.0Bn recorded in 4QFY16 while for the FY17 the same was recorded at LKR 19Bn with a 29%YoY incline in comparison to LKR 14.8Bn in FY16. Cotton being the main contributor to the cost of sales with a share of over70%.

GP Margin shrink to 11%: Amidst the 17%YoY increase in Cost of Sales in comparison to marginal 6%YoY increase in Topline led to a dip in Gross Profit to record at LKR 656Mn in 4QFY17 as opposed to LKR 832Mn and LKR 1.1Bn recorded in 3QFY17 and 4QFY16 respectively. GP Margin for the period dipped to register at 11% while the same was recorded at 13% and 20% in 3QFY17 and 4QFY16 respectively.

Selling, Distribution and Admin expenses increase by 30%: TJL’s saw a 30%YoY incline its Selling, Distribution and Administrative expenses reaching LKR 379Mn during the 4QFY17 (LKR 292Mn in 4QFY16) while the same was recorded at LKR 1.3Bn for FY17 as opposed to LKR 937Mn in FY16 drive by the one off expense incurred resultant to the expense reallocation due to the consolidation.

NP Margin 9%: Despite the shrink in GP margins, NP margin was registered at 9% in 4QFY17 in comparison to 7% recorded in 3QFY17 driven by the increase in other income to record at LKR 94Mn (LKR 39Mn in 3QFY17) and net finance income of LKR 25Mn in 4QFY17 (Finance cost of LKR 5Mn in 3QFY17). However, for the FY17 the NP margin eroded to register at 9% while the same was recorded at 12% for FY16.

Recommendation

Total return of 13% over 22 Months period: FC recommends a HOLD on TJL.N with a fair value of LKR 47.0 [LKR 41.7 on DCF based and LKR 51.9 on PER based] providing an annualised total return of 13%. HOLD

Disclaimer on Shareholding:

First Capital Group and its affiliates do not hold shares in TJL and will not trade in this share for the three trading days following the issue of this document.

CSE.SAS

Posts : 263
Join date : 2014-02-23

Back to top Go down

Re: FC Research : TJL - Earnings Update - HOLD - 09 06 17

Post by Ethical Trader on Wed Jun 14, 2017 2:48 pm

Thanks CSE for sharing.
avatar
Ethical Trader
Top contributor
Top contributor

Posts : 4654
Join date : 2014-02-28

Back to top Go down

Re: FC Research : TJL - Earnings Update - HOLD - 09 06 17

Post by slstock on Wed Jun 14, 2017 3:55 pm

Thanks for this.

Any banking/finance or manufacturing sector reports will be welcome.

_________________
Never listen to anyone including myself without your own study. Only few truly genuine people exist in this world.
Please read : [You must be registered and logged in to see this link.]
---------
avatar
slstock
Veteran
Veteran

Posts : 5406
Join date : 2014-06-12

Back to top Go down

Re: FC Research : TJL - Earnings Update - HOLD - 09 06 17

Post by Backstage on Wed Jun 14, 2017 6:13 pm

Thanks..
Cotton prices are expected to ease this year with bumper crops expected in US, India.
avatar
Backstage
Top contributor
Top contributor

Posts : 3312
Join date : 2014-02-24

Back to top Go down

Re: FC Research : TJL - Earnings Update - HOLD - 09 06 17

Post by Future123 on Wed Jun 14, 2017 8:49 pm

Thanks CSE.SAS.

Backstage, easing of cotton prices will be very good for TJL along with GSP plus benefit.

Future123
Active Member
Active Member

Posts : 1435
Join date : 2014-04-09

Back to top Go down

Back to top


 
Permissions in this forum:
You cannot reply to topics in this forum