Re: PLC.N0000 (People's Leasing and Finance PLC)

[yellow knifeTop contributor]

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[xmartTop contributor]

another octopus.. thanks YK +

[yellow knifeTop contributor]

PEOPLES LEASING & FINANCE PLC
Company ID: - PLC
Date of Announcement: - 27.May.2016
Rate of Dividend: - Rs. 0.50 per share / Final Dividend
Financial Year: - 2015/2016
Shareholder Approval: - Required
AGM: - 29.Jun.2016
XD: - 30.Jun.2016
Payment: - 11.Jul.2016
Share Transfer Book Open

[Yin-Yang]

Most of the companies have declared higher dividends this quarter, but PLC's is going down.
Sounds any problem?

BTW: how could SDB be linked to PLC with just 4.6%?
If so, I would also be a big octopus with links to about 20 entities.

[Ethical TraderTop contributor]

My reading of YK's chart reveals hat PLC owns 4.46% of SDB, not vice versa. Here, the octopus is PLC not SDB.

Most of the companies have declared higher dividends this quarter, but PLC's is going down.
Sounds any problem?

BTW: how could SDB be linked to PLC with just 4.6%?
If so, I would also be a big octopus with links to about 20 entities.

[Yin-Yang]

Oh! What I meant was; is 4.46% a big enough stake to show it as a tentacle. It rather looks like just a casual investment.

[HAL9000Top contributor]

Most of the companies have declared higher dividends this quarter, but PLC's is going down.
Sounds any problem?

BTW: how could SDB be linked to PLC with just 4.6%?
If so, I would also be a big octopus with links to about 20 entities.

I think usual pattern preserved, PLC declared 0.50 around May , and 0.75 around December over the last years. In one annual report PLC management stated that their policy is to pay 40 % of earnings as  dividends,  so It is delivered as current year EPS is around 3, We would get 1.50 per year when annual EPS touches 4.0. Am I coreect ?

[HAL9000Top contributor]

It is also worth to note that PLC usually trades at highet price/earning multiples than peers. In bear period it was around 7, and bullish period it comes close to 10 and above.We might see some significant upward movement if market finds the bull.

[Yin-Yang]

Most of the companies have declared higher dividends this quarter, but PLC's .......

I think usual pattern preserved, PLC declared 0.50 around May , and 0.75 around December over the last years. In one annual report PLC management stated that their policy is to pay 40 % of earnings as  dividends,  so It is delivered as current year EPS is around 3, We would get 1.50 per year when annual EPS touches 4.0. Am I coreect ?

Yes, you're correct HAL. PLC is maintaining the same.
Thanks for the correction.

I see a slight downward earnings this quarter but do not see any unusual problem.

In fact, their divided rate is above average (near 7%) considering the ongoing market price.

[HAL9000Top contributor]

Most of the companies have declared higher dividends this quarter, but PLC's .......

I think usual pattern preserved, PLC declared 0.50 around May , and 0.75 around December over the last years. In one annual report PLC management stated that their policy is to pay 40 % of earnings as  dividends,  so It is delivered as current year EPS is around 3, We would get 1.50 per year when annual EPS touches 4.0. Am I coreect ?

Yes, you're correct HAL. PLC is maintaining the same.
Thanks for the correction.

I see a slight downward earnings this quarter but do not see any unusual problem.

In fact, their divided rate is above average (near 7%) considering the ongoing market price.

yes, most probably dividends will be higher than current amount from next year onward if things go well. In previous thread YK highlighted that special features of PLC, It is in a steep growth phase after IPO, Is a good dividend payer and is attractive to traders as well considering the price movements within a year. PLC is also the market leader, with government related shareholding so that the stability. I can not think of another share with these all round features

[Ethical TraderTop contributor]

Yep.

Oh! What I meant was; is 4.46% a big enough stake to show it as a tentacle. It rather looks like just a casual investment.

[yellow knifeTop contributor]

Yep.

Oh! What I meant was; is 4.46% a big enough stake to show it as a tentacle. It rather looks like just a casual investment.

Yes 4.46% is not considered as a strategic decision when we look from accounting angle.

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What is an 'Associate Company'

An associate company is a corporation whose parent company possesses only a minority stake in the ownership of the corporation. An associate company is partly owned by another company or group of companies. The parent company or companies do not consolidate the associate company's financial statements. The parent company typically owns 20 to 50% of the voting shares; if more than 50% of the shares are owned by a parent company, it creates a subsidiary (where the parent company consolidates the financial statements). Typically, the parent company records the associate company's value as an asset in its balance sheet. Also called Associate.

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However when we consider Sanasa Development Bank's top twenty 4.46% is a worthy amount to secure a seat in its director board.

Even holding less than 4% PLC.N was the largest shareholder in 2013

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These are the reasons that made me to consider the position of PLC.N in SDB.

[Yin-Yang]

Yes, Thanks YK; that's what I wanted to bring out and you did it nicely.

Besides, you had highlighted SDB in a different color as well for a reason I believe.

[yellow knifeTop contributor]

Yes I use colours carefully... PB owned I put in blue and PLC owned I put in Green.. and SDB is a platypus if I paraphrase Ben Barnanake.. Its a different animal which is a mamal an egg laying mamal... SDB ownership belongs to general public in real terms and to a family in hidden terms and somewhat similar to JKH...

I think now lets leave PLC thread for PLC and SDB, JKH are they really belong to general public or to a family is worth discussing in a separate thread...

[BackstageTop contributor]

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Tentacles are getting longer !

[HAL9000Top contributor]

Many Sri Lankan people trying to get into Bangladesh,(Recently LGL, Earlier SAMP had a subsidiary) which entered a rapid growth phase from a low base. It is a larger market than ours. Whole South Asia entering  a golden era ! PLC conquered the Sri Lankan market as the leader and now extend it wings.

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[yellow knifeTop contributor]

PLC gets nod to merge with People's Merchant Finance..

[BackstageTop contributor]

PLC gets nod to merge with People's Merchant Finance..

Did you see that it was on condition that they sell their property on Nawam Mawatha for a particular sum. Any idea on that ?

[yellow knifeTop contributor]

This time we see a surprising declining trend in top line of PLC.


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[yellow knifeTop contributor]

PAT of PLC was improving over the period consistently.

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[yellow knifeTop contributor]

EPS growth of PLC

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[yellow knifeTop contributor]

PE ratio

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[sanjulanka]

Thanks YK

[HAL9000Top contributor]

PE ratio

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Thanks,
PLC traded a bit higher multiples than the peers in the past as it is the market leader with government backed stability. Now PLC is trading at one of the lowest P/E multiples in the history after IPO. PLC might find its due position sooner than we expect

[ruwan326]

Financial Performance- Period ended 31 December 2018

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