AHUN.N0000

[yellow knifeTop contributor]

If Sri Lankan firms trying to consider to reach MNC status, Aitken Spence is an example.
AHUN has reached Maldives, India and Oman.. Operations out of Sri Lankan boundaries are successful and owns 6 islands of Maldives. Indian operations are to be re-considered where Oman operations are carried out successfully

Out of the Profits 70% is taken from Maldives operations..

[yellow knifeTop contributor]

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

[yellow knifeTop contributor]

We don't have many companies that reach a profit above Rs 2 Billion mark and AHUN.N is one such. In addition to that out of this 2 Billion 70% is taken from out of SL borders is another important factor..

The Ocean Villas at Huduranfushi, ( Maldives) which was destroyed by a fire during last year has been reconstructed this year..Browns Beach Hotels which is an associate of AHUN will be restarted this year with 143 rooms and under the name of Heritance Negombo

[yellow knifeTop contributor]

AHUN is now traded at Rs 76 and the Net Asset Values are shown in following chart...

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

[yellow knifeTop contributor]

AHUN has been paying out dividends and the dividend pay out ratio is not attractive like TPL, TJL, when we compare the Mkt Value of the share

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

[yellow knifeTop contributor]

AHUN.N 's data seems to vary as a share split of 7 to 1 took place in 2010

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

[yellow knifeTop contributor]

Companies where PE ratio is less than 10 is often attractive

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

[yellow knifeTop contributor]

EPS has potential to grow further as " Over-capacity" is a term found in 2015 annual report..

CIND used this term last annual report but 2015 report recorded the best ever performance.. A company that under-perform can record forever highest once the underlying factors are supportive to them.. A company that has reached the maximum capacity fails to grab such opportunities..

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

[yellow knifeTop contributor]

Debt to equity ratio is again maintained at a healthy level.

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

[yellow knifeTop contributor]

When studying top twenty list many short term players look at whether there appear names of known traders where as I look at long term players who will remain in the list for a longer period..

M.J. Fernando is one such name. He being an entrepreneur in tea industry appear in many annual reports of Tea and Tourism...

17th Largest shareholder of this is Mr. M.J. Fernando.
Ceylon Tea Services (Dilmah), TPL, Kahwatta, Fortress Resorts are among other companies where he and his associates appear..

[BackstageTop contributor]

Another gem of a post from YK. Knowledgeable people who share their knowledge are the true heroes of the human race. Thanks.

About the split in 2010, are not the charts adjusted to show the real picture ? Then why such a plunge in NAV ?

[kassTop contributor]

Your posts are very informative YK thanks very much

[yellow knifeTop contributor]

Backstage i have not adjusted figures after share split..Have I adjusted the chart would have appeared as follows..

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

[yellow knifeTop contributor]

Future Prospects

Sri Lankan tourism is expected to enjoy 2 million tourist arrivals per annum.

Targeting that more developments are undertaken by AHUN as well.. With the Collaboration of RIU Resorts of Spain , Aitkenspence develop RIU Heritance Ahungalla.

Charter planes will be reactivated with the opening of this 501 roomed hotel in 2016.

Having Mattala Airport in Southern province is an advantage of this project.

The Chairman's message is in full praise of infrastructure developments taken place in the country after war.

Following is an extract and link of relevant info.

"
Chairman of Aitken Spence, said that the timing of the hotel's opening would be right since the Southern Highway to Hambantota is expected to reach completion by that time. “We have the Mattala Airport facility already in place, giving us an ideal mix for our business model. Aitken Spence has always encouraged infrastructure development in the country and our investment is proof of our confidence and support of the.
 

Government's development plans. The strategy for all our beach resorts in the South including the new RIU Resorts is in line with the Government’s vision for the further development of the country, especially in the tourism segment.”

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

[yellow knifeTop contributor]

2016 will be a best performing year for AHUN. as two additional islands from Maldives, fully completed and reopening of burnt down unit, opening of RIU Hertiance Ahungalla and charter plane operations will increase the sales revenue..

another quote
"
he Mattala Airport will play a large role in keeping the hotel filled all year round, since TUI will be operating Boeing 787 Dreamliner charters, with the capacity of carrying 300 passengers on a weekly basis to and from the airport transporting guests exclusively to the resort.
 
The business model spearheaded by the Group, apart from having a significant impact on the tourism sector,would also have a snowball effect in developing the industry, especially in the deep south of the country
"

All these positive news will add value to AHUN.

However when compare with the number of resorts AHUN maintain to get Rs 2 Billion profit, AHPL is more efficiently managed.

[yellow knifeTop contributor]

From AHUN now we will look at the strengths of RIU the business partner


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

RIU Hotels & Resorts was founded in Mallorca, Spain, in 1953 as a small summer business for the Riu family, and is currently owned by TUI and run by the third generation of the family. The company's business is focused on the holiday hotel sector and over 60% of its establishments offer an all inclusive service.
With the opening of its first city hotel in 2010, RIU extended its range of products with its own line of city hotels called Riu Plaza. RIU Hotels & Resorts has over 100 hotels in 16 countries, and employs over 25,150 people. Last year (2014) its hotels welcomed a total of 4 million guests. Nowadays RIU is the 30th biggest hotel chain in the world, and one of the most important at the Caribbean and the third in Spain.

[yellow knifeTop contributor]

In 2010, RIU Hotels & Resorts launched their new line of Riu Plaza city hotels. These are located in the centre of large cities and cater for both business travellers and tourists. RIU has hotels in Spain, Portugal, Dominican Republic, Cuba, United States, Mexico, Jamaica, Bahamas, Aruba, Turkey, Tunisia, Morocco, Bulgaria, Cyprus, Malta, Costa Rica, Panama, Cape Verde, Mauritius, St. Martin and Sri Lanka.

[yellow knifeTop contributor]

TUI group own RIU and following extract shows AHUN's longstanding partner in tourism TUI was dedicated to develop tourism since Tusnami hit SL

The Chairman referring to a statement made by him in the Group’s 2005 Annual Report stated, “…if you remember in the year following the tsunami when we saw the total destruction of many beach resorts, we made plans to expand  both nationally and internationally and our board decided to think globally with our multinational partners and it was in that same financial year that after a long standing partnership with TUI,

[yellow knifeTop contributor]

The Mattala Airport will play a large role in keeping the hotel filled all year round, since TUI will be operating Boeing 787 Dreamliner charters, with the capacity of carrying 300 passengers on a weekly basis to and from the airport transporting guests exclusively to the resort.

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

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

[yellow knifeTop contributor]

Out of Hotels in SL in the group Heritance Kandalma and  Heritance Tea Factory has recorded best ever revenues and PAT showing the upper market attraction for SL hotels..

[කිත්සිරි ද සිල්වාTop contributor]

Putting White Elephant projects to generate revenue is a welcome news.

(Dream-liner is a very sensitive aircraft and I hope they will have adequate repair facilities stationed there to meet any eventuality).

[yellow knifeTop contributor]

Aitken Spence to acquire 59% of Fiji Ports Corporation LTd together with Fiji National Provident Fund.

Aitken Spence holding of Fiji Ports Corporation Ltd will be 20% and Aitken Spence will invest FJD 34.6 Million



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

[yellow knifeTop contributor]

Disclosure on Ahun Heritance

[*]CORPORATE DISCLOSURE (AMENDED)    [You must be registered and logged in to see this image.] 15 March 2016

[*]

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

[HAL9000Top contributor]

Disclosure on Ahun Heritance

[*]CORPORATE DISCLOSURE (AMENDED)    [You must be registered and logged in to see this image.] 15 March 2016

[*]

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

Thanks for the analysis.
AHUN is in relatively good cash position with lesser debt, We saw recently they engaged in Acquisition spree and developing/refurbishing product portfolio. More importantly their focus is high end market. We'll be able to see, how they deliver in coming years.