HOPL.N0000 ( Horana Plantations PLC)

[yellow knifeTop contributor]

Horana Plantation Plc is a company where 51% of it belongs to Vallibel Plantation Management Ltd.

Tea and Rubber are the main crops of this company. At present 107.53 Hectares belong to Oil Palm and by 2018 that will be 500 hectares.

Namunukula Plantation posses an extent of 1931 hectares of Oil Palm and that is 28% of the total Oil Palm cultivated in Sri Lanka.

[yellow knifeTop contributor]

Revenue of the company stand equal to Namunukula Plantation but net profit stays about 50% of Namun as tea and rubber are the main income sources of Horana Plantation..

	2015	2014	2013	2012	2011	2010	2009	2008	2007	2006
Revenue	2,164,859	2,269,092	2,220,225	2,068,933	2,079,720	1,781,125	1,388,687	1,630,740	1,314,654	1,184,290
Gross Profit	141,576	271,161	369,330	209,955	464,708	204,345	147,338	271,010	250,276	196,463
Comprehensive Income	76,685	70,786	224,266	87,320	329,598	94,568	55,231	151,980	153,948	105,238

[yellow knifeTop contributor]

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[yellow knifeTop contributor]

2011 was the best performing year for Horana Plantation and when rubber price went up Kegalle recorded the best performance in the same year

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[yellow knifeTop contributor]

2011 performance was represented in Market Price of the share and long term players have to avoid such best performing years when the performance deviates from the normal pattern..

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[yellow knifeTop contributor]

Like many plantation companies Horana Plantation Plc also declare dividends based on their earnings.

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[yellow knifeTop contributor]

Net Assets Per share was also moving in a steady growth pattern and it makes this company's share price to move in a steady but slow upward trend.

If you can avoid bubbles created like in 2011 Horana is a good selection for long term investors..

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[yellow knifeTop contributor]

Debt to equity levels are also not threatening to the ability to declared dividends..

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[pathfinderTop contributor]

Very informative YK thanks,
let me suggest a thing.It's good if all info arranged in a one post.I found it's easy to read.

[yellow knifeTop contributor]

I too now find it difficult to find these company based analysis of mine as they are scattered here and there under market chat..

I wonder wether they should be located under industry analysis of FG

[AdminAdmin]

YK. Do keep the links of the thread saved. We can organize them soon.

If the ticker is 4 characters, it will come up in search. So name the titles XYZ.N0000 (XYZ PLC)

[yellow knifeTop contributor]

Thanx... I will do that...

that will be really beneficial for me to re-refer

[Jana1Top contributor]

Goodone YK, Don't you think KGAL is the best plantation company in the mkt? I remeber FG analysis of ELPL, which is also good. Since this is long term, I believe KGAL would give better return...

[yellow knifeTop contributor]

Jana

What is the best Plantation company is a qualitative question where the answer will be subjective to the way we evaluate ...

Kahawatta is good but for me I dont accumulate the shares of companies that dont pay dividends..

For me TPL is good..
Namun is well balanced
Kegalle will boost when natural price shoot up..
HOPL is fairly ok
Hpau is not my selection so is Maskeliya due to lack of dividends..

If you are not a dividend hunter Kahawatta is ok...

I like to evaluate few more plantation companies then to evaluate the industry as a whole..

[yellow knifeTop contributor]

FG seems to be correct

Kegalle was performing above average in the plantation EPS for many years , even though TPL is leading now as  rubber price is low..

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[yellow knifeTop contributor]

However if you compare Plantation sector with other industries you will find Plantation revenue is some what stagnant..

The underlying factor is SL total production of Tea is rather stagnant..

As I have mentioned earlier the Revenue of Plantation sector is beyond its control..

(Revenue= Quantity*Price)

But in other industries where both Q and P is within the control of a company the growth is depending on the efficiency of the management..

Just have a look at following graph..That include best food and beverage company, manufacturing company and a finance company against entire plantation sector..

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[yellow knifeTop contributor]

Another graphical presentation of the same data

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[yellow knifeTop contributor]

Now if you identify that plantations are not following the growth momentum of other companies , why should investors buy plantations including me?

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[yellow knifeTop contributor]

Companies where growth is low but enjoy high market share , are Cash Cows..They generated good dividends..

Having such cash cows in your portfolio gives you cash inflows to be utilized wisely..

[yellow knifeTop contributor]

                2017

Even though plantation sector could recover by the latter part of 2016, not all companies of the industry could perform as usual. HOPL is a company miserably missed the gains .

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[yellow knifeTop contributor]

Company failed to recover enough to end on a positive note.


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[yellow knifeTop contributor]

Market value was fairly stagnant...


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[yellow knifeTop contributor]

Company failed to declare dividends on two consecutive years. Bad weather can be one culprit.

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[yellow knifeTop contributor]

Net assets situation


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[yellow knifeTop contributor]

When earnings are not upto the expected level amidst of rising labour cost, its natural to get into higher debts..


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