Re: TJL.N0000 (Tee Jey Lanka PLC.)

[The Invisible]

Teejay posts operating profit of Rs. 15mn in COVID-19 hit first quarter

Teejay Lanka PLC has reported operating profit of Rs 15.2 million and profit before tax of Rs 13.9 million for the first quarter of 2020-21 but posted a nominal net loss – its first since being listed on the Colombo Stock Exchange (CSE) – directly as a result of the loss of production and orders due to the COVID-19 pandemic.

In a filing with the CSE, Sri Lanka’s only multinational textile producer said revenue for the three months ending 30th June, at Rs 4.7 billion reflected a reduction of 42%. Group gross profit reduced by 73% to Rs 256 million but administrative expenses, although 31% lower than in the corresponding period of last year, totalled Rs 262.8 million for the quarter, resulting in profit before tax falling by 98%. Consequently, the Group posted a net loss of Rs 31.5 million for the three months under review, as against a net profit of Rs 453.6 million in the first quarter of 2019-20.

The Teejay Group posted net profit of Rs 2.4 billion for the full year of 2019-20, but revenue and net profit for final quarter of the year declined by 21% and 30% due to the suspension of both production and sales in March 2020.

Teejay Lanka Chairman Mr Bill Lam disclosed that in addition to the under-utilisation of capacity Teejay had received updates from customers of pushback of orders as well as credit extensions in the period under review. “To meet these trying times the team negotiated with suppliers to extend the credit period applicable to customers and went on a cost-cutting drive. This included a number of situational cost reduction projects such as salary reductions and freezing of new capital expenditure. These were some of the stringent measures to stabilise the ship in one of the biggest storms this company has had to face in its 20-year history,” he said.

Teejay Lanka CEO Mr Pubudu De Silva added that the Group was agile enough to introduce new fabrics for the manufacture of Personal Protection Equipment (PPE). “In addition, Teejay is working on new business opportunities including new customers and new product lines of defensive fabrics to meet customer demands relating to post COVID-19 requirements,” he said.

“As a result of the team’s speed in setting up COVID-19 prevention processes, our operations in Sri Lanka got underway by mid-May, and our highly mechanised plants in Sri Lanka were capable of producing the same capacity as pre-COVID-19 levels by the end of May 2020.”

Mr De Silva also revealed that reduction of reliance on a single destination for fabric has become high on the agenda of many customers who are now looking for diverse locations to source their fabric requirements. As a result, the last month of the quarter under review saw a significantly better performance than the first two months and this trend is expected to continue into the second quarter, generating a stronger order book compared to that of the first quarter.

Teejay Lanka was adjudged the Best Textile Exporter in Sri Lanka at the Presidential Export Awards presented by the Export Development Board (EDB) in 2019, moved up three places in the Business Today Top 30 companies ranking that year and was named among the 100 Most Respected Companies in Sri Lanka by LMD.

With manufacturing operations in Sri Lanka and India, Teejay is one of the region’s largest textile manufacturers, and supplies fabric to some of the best international brands across the world. Teejay Lanka PLC is a public quoted company with 39% public ownership. The company is backed by Sri Lanka’s largest apparel exporter, Brandix Lanka which has a 33% stake and Pacific Textiles of Hong Kong which owns 28% of the company. An ISO 9001:2015, ISO 14001:2015 and OHSAS 18001:2007 compliant company and the first in the industry to develop green fabric, Teejay has been listed on the Colombo Stock Exchange (CSE) since 2011 and was included in the S&P Top 20 Index in Sri Lanka. The Company has also been named among the Forbes ‘200 Best under a Billion in Asia’ and been recognised as the ‘International Textile Firm of the Year’ and the ‘International Dyer and Finisher’ by World Textile Institute, London.

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[Wonderer]

Teejay posts operating profit of Rs. 15mn in COVID-19 hit first quarter

Teejay Lanka PLC has reported operating profit of Rs 15.2 million and profit before tax of Rs 13.9 million for the first quarter of 2020-21 but posted a nominal net loss – its first since being listed on the Colombo Stock Exchange (CSE) – directly as a result of the loss of production and orders due to the COVID-19 pandemic.

In a filing with the CSE, Sri Lanka’s only multinational textile producer said revenue for the three months ending 30th June, at Rs 4.7 billion reflected a reduction of 42%. Group gross profit reduced by 73% to Rs 256 million but administrative expenses, although 31% lower than in the corresponding period of last year, totalled Rs 262.8 million for the quarter, resulting in profit before tax falling by 98%. Consequently, the Group posted a net loss of Rs 31.5 million for the three months under review, as against a net profit of Rs 453.6 million in the first quarter of 2019-20.

The Teejay Group posted net profit of Rs 2.4 billion for the full year of 2019-20, but revenue and net profit for final quarter of the year declined by 21% and 30% due to the suspension of both production and sales in March 2020.

Teejay Lanka Chairman Mr Bill Lam disclosed that in addition to the under-utilisation of capacity Teejay had received updates from customers of pushback of orders as well as credit extensions in the period under review. “To meet these trying times the team negotiated with suppliers to extend the credit period applicable to customers and went on a cost-cutting drive. This included a number of situational cost reduction projects such as salary reductions and freezing of new capital expenditure. These were some of the stringent measures to stabilise the ship in one of the biggest storms this company has had to face in its 20-year history,” he said.

Teejay Lanka CEO Mr Pubudu De Silva added that the Group was agile enough to introduce new fabrics for the manufacture of Personal Protection Equipment (PPE). “In addition, Teejay is working on new business opportunities including new customers and new product lines of defensive fabrics to meet customer demands relating to post COVID-19 requirements,” he said.  

“As a result of the team’s speed in setting up COVID-19 prevention processes, our operations in Sri Lanka got underway by mid-May, and our highly mechanised plants in Sri Lanka were capable of producing the same capacity as pre-COVID-19 levels by the end of May 2020.”

Mr De Silva also revealed that reduction of reliance on a single destination for fabric has become high on the agenda of many customers who are now looking for diverse locations to source their fabric requirements. As a result, the last month of the quarter under review saw a significantly better performance than the first two months and this trend is expected to continue into the second quarter, generating a stronger order book compared to that of the first quarter.

Teejay Lanka was adjudged the Best Textile Exporter in Sri Lanka at the Presidential Export Awards presented by the Export Development Board (EDB) in 2019, moved up three places in the Business Today Top 30 companies ranking that year and was named among the 100 Most Respected Companies in Sri Lanka by LMD.

With manufacturing operations in Sri Lanka and India, Teejay is one of the region’s largest textile manufacturers, and supplies fabric to some of the best international brands across the world. Teejay Lanka PLC is a public quoted company with 39% public ownership. The company is backed by Sri Lanka’s largest apparel exporter, Brandix Lanka which has a 33% stake and Pacific Textiles of Hong Kong which owns 28% of the company. An ISO 9001:2015, ISO 14001:2015 and OHSAS 18001:2007 compliant company and the first in the industry to develop green fabric, Teejay has been listed on the Colombo Stock Exchange (CSE) since 2011 and was included in the S&P Top 20 Index in Sri Lanka. The Company has also been named among the Forbes ‘200 Best under a Billion in Asia’ and been recognised as the ‘International Textile Firm of the Year’ and the ‘International Dyer and Finisher’ by World Textile Institute, London.

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Why is this share stagnating around 29-30? Due to NAV?

[කිත්සිරි ද සිල්වාTop contributor]

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[කිත්සිරි ද සිල්වාTop contributor]

[url=https://www.cse.lk/pages/general-announcements/general-announcements.component.html?id=10711&type=CASH DIVIDEND]Cash Dividend[/url] 

[කිත්සිරි ද සිල්වාTop contributor]

Full-year 2021 earnings released: EPS LK₨3.04 (vs LK₨3.40 in FY 2020)

The company reported a poor full-year result with weaker earnings, revenues and profit margins. Full-year 2021 results: Revenue: LK₨31.8b (down 4.5% from FY 2020). Net income: LK₨2.14b (down 10% from FY 2020). Profit margin: 6.7% (down from 7.2% in FY 2020). The decrease in margin was driven by lower revenue. Over the last 3 years on average, earnings per share has increased by 6% per year whereas the company’s share price has increased by 10% per year.

[BackstageTop contributor]

Been holding TJ for 3 years now, cost around 22/. Dividends not inclusive. I am very confident of its performance in the year ahead, however it goes 48 plus will sell a potion due to all the black and grey swans flying around these days.

[කිත්සිරි ද සිල්වාTop contributor]

Teejay Lanka

TJL.N0000

Share Price 7 Day 1 Year 41.1 1.2% 37.0% The price target increased to LK ₨51.10 Up from LK ₨45.70, the current price target is an average from 2 analysts. ·   The new target price is 24% above the last closing price of LK ₨41.10. ·   Stock is up 37% over the past year.

[chutiputhaTop contributor]

TJL...
will Include some Hayles Fabric and up coming Hela Cloths too.
all will get benefited at once.

[කිත්සිරි ද සිල්වාTop contributor]

TJL...
will Include some Hayles Fabric and up coming Hela Cloths too.
all will get benefited at once.

Hope you are not referring to දයාසිරි බතික්, චූටි පුතේ ? 

[chutiputhaTop contributor]

TJL...
will Include some Hayles Fabric and up coming Hela Cloths too.
all will get benefited at once.

Hope you are not referring to දයාසිරි බතික්, චූටි පුතේ ? 

No no not that one Kith Ayya.
Hela IPO will arrive in future. so all 3 will play together

[කිත්සිරි ද සිල්වාTop contributor]

Teejay Lanka

TJL.N0000

Share Price 7 Day 1 Year 41.7 -0.7% 26.4% Second-quarter 2022 earnings released: EPS LK₨0.90 (vs LK₨0.90 in 2Q 2021) The company reported a solid second-quarter result with improved earnings and revenues, although profit margins were weaker. Second-quarter 2022 results: ·   Revenue: LK₨12.7b (up 44% from 2Q 2021). ·   Net income: LK₨643.6m (up 1.9% from 2Q 2021). ·   Profit margin: 5.1% (down from 7.2% in 2Q 2021). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has increased by 7% per year whereas the company’s share price has increased by 8% per year.

[කිත්සිරි ද සිල්වාTop contributor]

Teejay Lanka
TJL.N0000

Share Price 7 Day 1 Year  

49        -2.6%          19.5%
 
Third quarter 2022 earnings: EPS and revenues miss analyst expectations.

Third quarter 2022 results:

EPS: LK₨1.03 (down from LK₨1.10 in 3Q 2021).

Revenue: LK₨13.1b (up 53% from 3Q 2021).

Net income: LK₨737.5m (down 5.3% from 3Q 2021).

Profit margin: 5.6% (down from 9.1% in 3Q 2021). The decrease in margin was driven by higher expenses.

Revenue missed analyst estimates by 1.4%. Earnings per share (EPS) also missed analyst estimates by 3.2%.

Over the next year, revenue is forecast to grow 27%, compared to a 32% growth forecast for the industry in Sri Lanka.

Over the last 3 years on average, earnings per share has increased by 6% per year but the company’s share price has increased by 13% per year, which means it is tracking significantly ahead of earnings growth.

[කිත්සිරි ද සිල්වාTop contributor]

TJL.N0000

Share Price 7 Day 1 Year  
39.00        -2.3%          1.3%  

 
The price target increased to LK₨65.30.

Up from LK₨58.33, the current price target is an average from 3 analysts.

The new target price is 67% above the last closing price of LK₨39.00.

Stock is up 1.3% over the past year.

The company is forecast to post earnings per share of LK₨5.93 next year compared to LK₨3.52 last year.

[කිත්සිරි ද සිල්වාTop contributor]

Price-To-Earnings ratio (8.5x) is below the Luxury industry average (14.3x)

Earnings are forecast to grow 32.84% per year

Earnings grew by 14.7% over the past year

RISK ANALYSIS

Unstable dividend track record

Profit margins (3.5%) are lower than last year (5.3%)

Does not have a meaningful market cap (LKR24B)