The Investor Sentiment - Equity and investments forum for Sri Lankans
The Investor Sentiment - Equity and investments forum for Sri Lankans
Would you like to react to this message? Create an account in a few clicks or log in to continue.
Please send an email to contact.lankaninvestor@gmail.com if you face any technical difficulties when posting
Search
Display results as :
Advanced Search
Latest topics
HAYC - HaycarbToday at 7:43 amAdmin
Plantation Sector UpdatesTue Oct 20, 2020 3:11 pmslstock
LWL.N0000 (Lanka Walltiles PLC)Fri Oct 16, 2020 12:50 amsubash
CSE Daylight Robbery !Mon Sep 21, 2020 9:54 pmYin-Yang
Trading Journal Tue Sep 15, 2020 10:37 pmThe Invisible
AEL Access EngineeringTue Sep 15, 2020 7:24 pmsmallville
CFVF - First CapitalWed Sep 09, 2020 9:42 pmWonderer
අනං මනං! #/+?.<>Tue Aug 18, 2020 11:15 pmYin-Yang
Ceylon Tobacco CTCSun Aug 16, 2020 5:11 pmThe Invisible
Sunshine HoldingsFri Aug 14, 2020 9:39 pmThe Invisible
Disclaimer


Information posted in this forum are entirely of the respective members' personal views. The views posted on this open online forum of contributors do not constitute a recommendation buy or sell. The site nor the connected parties will be responsible for the posts posted on the forum and will take best possible action to remove any unlawful or inappropriate posts.
All rights to articles of value authored by members posted on the forum belong to the respective authors. Re-using without the consent of the authors is prohibited. Due credit with links to original source should be given when quoting content from the forum.
This is an educational portal and not one that gives recommendations. Please obtain investment advises from a Registered Investment Advisor through a stock broker

Go down
avatar
Rana
Top contributor
Top contributor
Posts : 1786
Join date : 2015-12-16

Sri Lanka listed company profits up 11-pct, market re-rated down: data Empty Sri Lanka listed company profits up 11-pct, market re-rated down: data

on Fri Nov 25, 2016 1:42 am
http://www.economynext.com/Sri_Lanka_listed_company_profits_up_11_pct,_market_re_rated_down__data-3-6695-3.html

ECONOMYNEXT - Profits at Sri Lanka's publicly traded companies rose 11 percent to Rs225 billion in the 12 months ending September 2016 from a year earlier, while quarterly earnings were up 24 percent to Rs59.4 billion, a research report said.

But the market had steadily re-rated down in terms of price-to-earnings multiples and price-to-book values over the past 18 months.

CAP Partners, a Colombo-based advisory firm, said the top contributors to profits in the September quarter was Ceylon Tobacco (7.5 percent), Hatton National Bank (6.8 percent), John Keells Holdings (6.3 percent), Commercial Bank (6.2 percent) and Dialog Axiata (4.8 percent).

Net interest income was higher at banks, despite rising rates in the quarter, CAL Partners said.

Valibel One, lost Rs3.0 billion in the quarter, down from a profit of Rs836 million last year.

Profits in the telecom, power and energy, oil palms grew, while services, stores and supplies, chemical and pharmaceuticals had fallen, the report said.

In the 12-months ending September 2016, John Keells Holdings brought 6.5 percent of the profits, HNB 6.3 percent, Commercial Bank 6.1 percent, Ceylon Tobacco 5.5 percent and Lanka Orix Leasing Company 4.1 percent.

The 12-month trailing earnings had grown 2.1 percent in the same period last year.

Sri Lanka engaged in a 'Keynesian stimulus' in the first quarter of 2015, expanding state spending and financing the budget deficit through printed money, generating a balance of payments crisis and currency collapse.

The market was trading at a price-to-earnings multiple of 13.7 times, trailing 12 months in the first quarter of 2015, followed by 13.4 times in the second quarter 13.5 times in the third quarter and 13.4 times in the fourth quarter.

The price-to-earnings multiple (the period in years it takes for a theoretical buyer of a company to recover his investment at historical profits) is a reflection of forward expectations.

When investors expect earnings to be stagnant or fall, they will pay a lower price for stock.

The rupee started to collapse in the third quarter and corrective measures to stop money printing were put in place from the third quarter, analysts say.

In the first quarter of 2015, price-to-earnings multiples fell to 12.9 times, in the second quarter it fell to 12.7 times. In the current quarter, it was down to 12.2 times.

The price-to-book value had fallen from 1.55 times in the first quarter of 2015 to 1.41 times in the third quarter of 2016. (Colombo/Nov21/2016)
avatar
yellow knife
Top contributor
Top contributor
Posts : 6809
Join date : 2014-03-27

Sri Lanka listed company profits up 11-pct, market re-rated down: data Empty Re: Sri Lanka listed company profits up 11-pct, market re-rated down: data

on Fri Nov 25, 2016 7:12 am
Sri Lanka engaged in a 'Keynesian stimulus' in the first quarter of 2015, expanding state spending and financing the budget deficit through printed money, generating a balance of payments crisis and currency collapse.
Noted


When investors expect earnings to be stagnant or fall, they will pay a lower price for stock.
Agreed

The rupee started to collapse in the third quarter and corrective measures to stop money printing were put in place from the third quarter, analysts say
Better late than never...
Back to top
Permissions in this forum:
You cannot reply to topics in this forum