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FC Research : TJL - Earnings Update - HOLD - 09 06 17 EmptyYesterday at 8:13 pm by Rana

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FC Research : TJL - Earnings Update - HOLD - 09 06 17 EmptyYesterday at 7:45 pm by serene

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» Little Known Facts !
FC Research : TJL - Earnings Update - HOLD - 09 06 17 EmptyYesterday at 9:27 am by කිත්සිරි ද සිල්වා

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FC Research : TJL - Earnings Update - HOLD - 09 06 17 EmptySat Apr 20, 2019 10:07 am by ruwan326

» DFCC.N0000 ( DFCC BANK PLC )
FC Research : TJL - Earnings Update - HOLD - 09 06 17 EmptyFri Apr 19, 2019 7:23 pm by hammurabi

» LLUB.N0000 (CHEVRON LUBRICANTS LANKA PLC)
FC Research : TJL - Earnings Update - HOLD - 09 06 17 EmptyFri Apr 19, 2019 6:26 pm by PANTOMATH

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FC Research : TJL - Earnings Update - HOLD - 09 06 17 EmptyThu Apr 18, 2019 6:05 pm by Ethical Trader

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FC Research : TJL - Earnings Update - HOLD - 09 06 17 EmptyThu Apr 18, 2019 6:02 pm by Ethical Trader

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FC Research : TJL - Earnings Update - HOLD - 09 06 17 EmptyWed Apr 17, 2019 6:33 pm by hammurabi

» Dividend Announcement
FC Research : TJL - Earnings Update - HOLD - 09 06 17 EmptySat Apr 13, 2019 10:53 pm by nihal123

» SEYLAN DEVELOPMENTS PLC (CSD.N0000)
FC Research : TJL - Earnings Update - HOLD - 09 06 17 EmptyFri Apr 12, 2019 8:55 am by yellow knife

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FC Research : TJL - Earnings Update - HOLD - 09 06 17 EmptyFri Apr 12, 2019 5:27 am by dhanurrox

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FC Research : TJL - Earnings Update - HOLD - 09 06 17 EmptyTue Apr 09, 2019 8:04 pm by NIRMALSG

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FC Research : TJL - Earnings Update - HOLD - 09 06 17 EmptyMon Apr 08, 2019 7:23 pm by ruwan326

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FC Research : TJL - Earnings Update - HOLD - 09 06 17 EmptyMon Apr 08, 2019 5:31 am by Ethical Trader

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FC Research : TJL - Earnings Update - HOLD - 09 06 17 EmptySun Apr 07, 2019 8:52 am by ruwan326

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FC Research : TJL - Earnings Update - HOLD - 09 06 17 EmptyFri Apr 05, 2019 1:37 pm by Ethical Trader

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FC Research : TJL - Earnings Update - HOLD - 09 06 17 EmptyFri Apr 05, 2019 7:40 am by serene

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FC Research : TJL - Earnings Update - HOLD - 09 06 17 EmptyThu Apr 04, 2019 6:53 pm by NIRMALSG

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FC Research : TJL - Earnings Update - HOLD - 09 06 17 EmptyWed Apr 03, 2019 6:04 pm by NIRMALSG

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FC Research : TJL - Earnings Update - HOLD - 09 06 17 EmptyWed Apr 03, 2019 3:40 pm by catseye

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FC Research : TJL - Earnings Update - HOLD - 09 06 17 EmptyTue Apr 02, 2019 12:38 pm by malanp

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FC Research : TJL - Earnings Update - HOLD - 09 06 17 EmptyTue Apr 02, 2019 12:31 pm by yellow knife

» SEYB.N0000 ( SEYLAN BANK PLC )
FC Research : TJL - Earnings Update - HOLD - 09 06 17 EmptyTue Apr 02, 2019 11:23 am by Backstage

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FC Research : TJL - Earnings Update - HOLD - 09 06 17 EmptyTue Apr 02, 2019 11:15 am by LSE

» NDB.N0000 (NATIONAL DEVELOPMENT BANK PLC)
FC Research : TJL - Earnings Update - HOLD - 09 06 17 EmptyTue Apr 02, 2019 11:11 am by Backstage

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FC Research : TJL - Earnings Update - HOLD - 09 06 17 EmptyMon Apr 01, 2019 2:13 pm by nihal123

» What to Analyse
FC Research : TJL - Earnings Update - HOLD - 09 06 17 EmptyMon Apr 01, 2019 8:00 am by yellow knife

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FC Research : TJL - Earnings Update - HOLD - 09 06 17 EmptySun Mar 31, 2019 6:09 pm by lanka

» In the Meantime, Within Our Shores !
FC Research : TJL - Earnings Update - HOLD - 09 06 17 EmptySun Mar 31, 2019 11:22 am by කිත්සිරි ද සිල්වා

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FC Research : TJL - Earnings Update - HOLD - 09 06 17 EmptyFri Mar 29, 2019 5:33 pm by yellow knife

» Obituary Notice.
FC Research : TJL - Earnings Update - HOLD - 09 06 17 EmptyFri Mar 29, 2019 5:07 pm by කිත්සිරි ද සිල්වා

» Re: Financial reports Q1-2019
FC Research : TJL - Earnings Update - HOLD - 09 06 17 EmptyFri Mar 29, 2019 7:45 am by serene

» Save Wilpattu !
FC Research : TJL - Earnings Update - HOLD - 09 06 17 EmptyThu Mar 28, 2019 1:58 pm by puliyanam

» Help him Today, so he can help another Tomorrow
FC Research : TJL - Earnings Update - HOLD - 09 06 17 EmptyThu Mar 28, 2019 7:49 am by serene

» HNB.N0000 ( Hatton National Bank PLC)
FC Research : TJL - Earnings Update - HOLD - 09 06 17 EmptyTue Mar 26, 2019 6:18 am by pjrngroup

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FC Research : TJL - Earnings Update - HOLD - 09 06 17 EmptyMon Mar 25, 2019 9:06 pm by malanp

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FC Research : TJL - Earnings Update - HOLD - 09 06 17 EmptyMon Mar 25, 2019 5:47 pm by NIRMALSG

» Oman's Oil and Gas Minister Dr. Al Ruhmy arrives in Lanka.
FC Research : TJL - Earnings Update - HOLD - 09 06 17 EmptySun Mar 24, 2019 12:11 pm by Ethical Trader

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FC Research : TJL - Earnings Update - HOLD - 09 06 17 EmptyTue Mar 19, 2019 9:34 am by AjithR

» JEWS OF SRI LANKA: AN UNTOLD STORY
FC Research : TJL - Earnings Update - HOLD - 09 06 17 EmptyTue Mar 19, 2019 9:22 am by කිත්සිරි ද සිල්වා

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FC Research : TJL - Earnings Update - HOLD - 09 06 17 EmptyTue Mar 19, 2019 7:29 am by nihal123

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FC Research : TJL - Earnings Update - HOLD - 09 06 17 EmptyFri Mar 15, 2019 2:59 pm by nuwanmja

» HAYL.N0000 Hayleys PLC
FC Research : TJL - Earnings Update - HOLD - 09 06 17 EmptyThu Mar 14, 2019 2:46 pm by yellow knife

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

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

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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

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

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

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