The Investor Sentiment - Equity and investments forum for Sri Lankans

Join the forum, it's quick and easy

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
When Will It Be Safe To Invest In The Stock Market Again?Wed Apr 19, 2023 6:41 amකිත්සිරි ද සිල්වා
Dividend AnnouncementsWed Apr 12, 2023 5:41 pmකිත්සිරි ද සිල්වා
MAINTENANCE NOTICE / නඩත්තු දැනුම්දීමThu Apr 06, 2023 3:18 pmකිත්සිරි ද සිල්වා
SEYB.N0000 (Seylan Bank PLC)Thu Mar 30, 2023 9:25 amyellow knife
The Korean Way !Wed Mar 29, 2023 7:09 amකිත්සිරි ද සිල්වා
In the Meantime Within Our Shores! Mon Mar 27, 2023 5:51 pmකිත්සිරි ද සිල්වා
What is Known as Dementia?Fri Mar 24, 2023 10:09 amකිත්සිරි ද සිල්වා
SRI LANKA TELECOM PLC (SLTL.N0000)Mon Mar 20, 2023 5:18 pmකිත්සිරි ද සිල්වා
THE LANKA HOSPITALS CORPORATION PLC (LHCL.N0000)Mon Mar 20, 2023 5:10 pmකිත්සිරි ද සිල්වා
Equinox ( වසන්ත විෂුවය ) !Mon Mar 20, 2023 4:28 pmකිත්සිරි ද සිල්වා
COMB.N0000 (Commercial Bank of Ceylon PLC)Sun Mar 19, 2023 4:11 pmකිත්සිරි ද සිල්වා
REXP.N0000 (Richard Pieris Exports PLC)Sun Mar 19, 2023 4:02 pmකිත්සිරි ද සිල්වා
RICH.N0000 (Richard Pieris and Company PLC)Sun Mar 19, 2023 3:53 pmකිත්සිරි ද සිල්වා
Do You Have Computer Vision Syndrome?Sat Mar 18, 2023 7:36 amකිත්සිරි ද සිල්වා
LAXAPANA BATTERIES PLC (LITE.N0000)Thu Mar 16, 2023 11:23 amකිත්සිරි ද සිල්වා
What a Bank Run ?Wed Mar 15, 2023 5:33 pmකිත්සිරි ද සිල්වා
104 Technical trading experiments by HUNTERWed Mar 15, 2023 4:27 pmkatesmith1304
GLAS.N0000 (Piramal Glass Ceylon PLC)Wed Mar 15, 2023 7:45 amකිත්සිරි ද සිල්වා
Cboe Volatility Index Tue Mar 14, 2023 5:32 pmකිත්සිරි ද සිල්වා
AHPL.N0000Sun Mar 12, 2023 4:46 pmකිත්සිරි ද සිල්වා
TJL.N0000 (Tee Jey Lanka PLC.)Sun Mar 12, 2023 4:43 pmකිත්සිරි ද සිල්වා
CTBL.N0000 ( CEYLON TEA BROKERS PLC)Sun Mar 12, 2023 4:41 pmකිත්සිරි ද සිල්වා
COMMERCIAL DEVELOPMENT COMPANY PLC (COMD. N.0000))Fri Mar 10, 2023 4:43 pmyellow knife
Bitcoin and Cryptocurrency Fri Mar 10, 2023 1:47 pmකිත්සිරි ද සිල්වා
CSD.N0000 (Seylan Developments PLC)Fri Mar 10, 2023 10:38 amyellow knife
PLC.N0000 (People's Leasing and Finance PLC) Thu Mar 09, 2023 8:02 amකිත්සිරි ද සිල්වා
Bakery Products ?Wed Mar 08, 2023 5:30 pmකිත්සිරි ද සිල්වා
NTB.N0000 (Nations Trust Bank PLC)Sun Mar 05, 2023 7:24 amකිත්සිරි ද සිල්වා
Going South Sat Mar 04, 2023 10:47 amකිත්සිරි ද සිල්වා
When Seagulls Follow the TrawlerThu Mar 02, 2023 10:22 amකිත්සිරි ද සිල්වා
Re-activatingSat Feb 25, 2023 5:12 pmකිත්සිරි ද සිල්වා
SAMP.N0000 (Sampath Bank PLC)Wed Nov 30, 2022 8:24 amකිත්සිරි ද සිල්වා
APLA.N0000 (ACL Plastics PLC)Fri Nov 18, 2022 7:49 amකිත්සිරි ද සිල්වා
AVOID FALLING INTO ALLURING WEEKEND FAMILY PACKAGES.Wed Nov 16, 2022 9:28 pmකිත්සිරි ද සිල්වා
Banks, Finance & Insurance Sector ChartTue Nov 15, 2022 5:26 pmකිත්සිරි ද සිල්වා
VPEL.N0000 (Vallibel Power Erathna PLC)Sun Nov 13, 2022 12:15 pmකිත්සිරි ද සිල්වා
DEADLY COCKTAIL OF ISLAND MENTALITY AND PARANOID PERSONALITY DISORDER MIX.Mon Nov 07, 2022 6:36 pmකිත්සිරි ද සිල්වා
WATA - WatawalaSat Nov 05, 2022 8:44 amකිත්සිරි ද සිල්වා
KFP.N0000(Keels Food Products PLC)Sat Nov 05, 2022 8:42 amකිත්සිරි ද සිල්වා
Capital Trust Broker in difficulty?Fri Oct 21, 2022 5:25 pmකිත්සිරි ද සිල්වා
IS PIRATING INTELLECTUAL PROPERTY A BOON OR BANE?Thu Oct 20, 2022 10:13 amකිත්සිරි ද සිල්වා
What Industry Would You Choose to Focus?Tue Oct 11, 2022 6:39 pmකිත්සිරි ද සිල්වා
Should I Stick Around, or Should I Follow Others' Lead?Tue Oct 11, 2022 9:07 amකිත්සිරි ද සිල්වා
DV-2024 Program: Online RegistrationThu Oct 06, 2022 11:26 amකිත්සිරි ද සිල්වා
Tile - SnapshotWed Sep 28, 2022 12:45 pmකිත්සිරි ද සිල්වා
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
CSE.SAS
Posts : 263
Join date : 2014-02-23

FC Research : TJL - Earnings Update - HOLD - 09 06 17 Empty FC Research : TJL - Earnings Update - HOLD - 09 06 17

Wed Jun 14, 2017 2:37 pm
Message reputation : 100% (3 votes)
TEEJAY LANKA PLC

Earnings Update – HOLD

Current Price: LKR 41.0 Fair Value: LKR 47.0

“Cotton absorbing the Margins”

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

Earnings Performance

Earnings dip by 40%YoY: TJL’s earnings for 4QFY17 was recorded at LKR 494Mn with a dip of 40%YoY in comparison to LKR 825Mn recorded in 4QFY16 while QoQ basis earnings saw a marginal increase of 4% in comparison to LKR 473Mn recorded in 3QFY17. For FY17, TJL’s earnings was recorded at LKR 1.96Bn as opposed to LKR 2.17Bn with a dip of 10%YoY.

Marginal growth in Revenue: During the 4QFY17, TJL’s topline registered a marginal growth of 6%YoY to record at LKR 5.8Bn amidst the continuing uncertainty prevailed in global market conditions coupled with softer demand. During the FY17 period TJL’s topline registered a YoY growth of 24% to reach LKR 22.2Bn in comparison to LKR 17.2Bn recorded in the previous year.

Cost of Sales increases 17%: Amidst the continuous upward movement in cotton prices impacted the increase in Cost of Sales by 17%YoY to record at LKR 5.1Bn during the 4QFY17 as opposed to LKR 4.0Bn recorded in 4QFY16 while for the FY17 the same was recorded at LKR 19Bn with a 29%YoY incline in comparison to LKR 14.8Bn in FY16. Cotton being the main contributor to the cost of sales with a share of over70%.

GP Margin shrink to 11%: Amidst the 17%YoY increase in Cost of Sales in comparison to marginal 6%YoY increase in Topline led to a dip in Gross Profit to record at LKR 656Mn in 4QFY17 as opposed to LKR 832Mn and LKR 1.1Bn recorded in 3QFY17 and 4QFY16 respectively. GP Margin for the period dipped to register at 11% while the same was recorded at 13% and 20% in 3QFY17 and 4QFY16 respectively.

Selling, Distribution and Admin expenses increase by 30%: TJL’s saw a 30%YoY incline its Selling, Distribution and Administrative expenses reaching LKR 379Mn during the 4QFY17 (LKR 292Mn in 4QFY16) while the same was recorded at LKR 1.3Bn for FY17 as opposed to LKR 937Mn in FY16 drive by the one off expense incurred resultant to the expense reallocation due to the consolidation.

NP Margin 9%: Despite the shrink in GP margins, NP margin was registered at 9% in 4QFY17 in comparison to 7% recorded in 3QFY17 driven by the increase in other income to record at LKR 94Mn (LKR 39Mn in 3QFY17) and net finance income of LKR 25Mn in 4QFY17 (Finance cost of LKR 5Mn in 3QFY17). However, for the FY17 the NP margin eroded to register at 9% while the same was recorded at 12% for FY16.

Recommendation

Total return of 13% over 22 Months period: FC recommends a HOLD on TJL.N with a fair value of LKR 47.0 [LKR 41.7 on DCF based and LKR 51.9 on PER based] providing an annualised total return of 13%. HOLD

Disclaimer on Shareholding:

First Capital Group and its affiliates do not hold shares in TJL and will not trade in this share for the three trading days following the issue of this document.
Ethical Trader
Ethical Trader
Top contributor
Top contributor
Posts : 5568
Join date : 2014-02-28

FC Research : TJL - Earnings Update - HOLD - 09 06 17 Empty Re: FC Research : TJL - Earnings Update - HOLD - 09 06 17

Wed Jun 14, 2017 2:48 pm
Thanks CSE for sharing.
slstock
slstock
Veteran
Veteran
Posts : 6216
Join date : 2014-06-12

FC Research : TJL - Earnings Update - HOLD - 09 06 17 Empty Re: FC Research : TJL - Earnings Update - HOLD - 09 06 17

Wed Jun 14, 2017 3:55 pm
Thanks for this.

Any banking/finance or manufacturing sector reports will be welcome.
Backstage
Backstage
Top contributor
Top contributor
Posts : 3803
Join date : 2014-02-24

FC Research : TJL - Earnings Update - HOLD - 09 06 17 Empty Re: FC Research : TJL - Earnings Update - HOLD - 09 06 17

Wed Jun 14, 2017 6:13 pm
Thanks..
Cotton prices are expected to ease this year with bumper crops expected in US, India.
avatar
Future123
Active Member
Active Member
Posts : 1435
Join date : 2014-04-09

FC Research : TJL - Earnings Update - HOLD - 09 06 17 Empty Re: FC Research : TJL - Earnings Update - HOLD - 09 06 17

Wed Jun 14, 2017 8:49 pm
Thanks CSE.SAS.

Backstage, easing of cotton prices will be very good for TJL along with GSP plus benefit.
Back to top
Permissions in this forum:
You cannot reply to topics in this forum