REXP.N0000 (Richard Pieris Exports PLC)

REXP is a golden share in this crisis moment. This is a unique share which would be benefited a lot in coming weeks.
1) Budget benefits - Export taxes might be removed completely. Corporate taxes on export companies likely to be reduced by a significant percentage. Double benefit
2) September quarter earnings likely to be outstanding
3) A big dividend on it's way
4) Likely to have a share split sooner
5) EPF can't massacre this as they are not in top 20

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The government which loved to kill the local manufacturer happen to feed it thanks to Dollar...

I hope if REXP can fall to 280-290 range based on the fibs where last run started. At least 290 is healthy before results released.

BTW I wonder what's wrong with HEXP? That aint making good income compared to REXP. Can anyone elaborate?

Last couple of days to enter REXP below 300/=. Not much selling and results will be out soon.

The budget will be very good for REXP with lots of goodies.

Future you are repeating the same statements again and again....

Sorry YK

Well its very natural to talk more about what you already invested and have high hopes about its performance...

Lets wait for the results...

My aim is to keep the threads more clean as a librarian keep the books..

Just imagine may be ten years or twenty years ahead we revisiting the the threads on shares and evaluate our own future predictions..

Very good performance by REXP.
Turnover increased by 24%. PAT increased by 21%.

EPS for 3 months Rs. 10.21
EPS for 6 months Rs. 19.57

The budget would bring a lot of benefit to REXP. An attractive dividend on the way. One of the best shares in this crisis moment. Watch out........

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In my opinion, this is not a very good performance. Best qtr many positive factors but not up to the my expectation. My expectation was above Rs 13.

Jana1 wrote:In my opinion, this is not a very good performance. Best qtr many positive factors but not up to the my expectation. My expectation was above Rs 13.

Did you notice that PAT is very impressive but the EPS was affected due to share of non controlling interest.

Total profit of Rs. 166.4 million is divided among REXP equity shareholders Rs. 113.99 million and share of non controlling interest Rs. 52.46 million. The EPS is calculated on Rs. 113.99 million. If the EPS is calculated on the overall profit it would be over 15/=.

Who are these holders (Non controlling interest)?

Future123 wrote:

Jana1 wrote:In my opinion, this is not a very good performance. Best qtr many positive factors but not up to the my expectation. My expectation was above Rs 13.

Did you notice that PAT is very impressive but the EPS was affected due to share of non controlling interest.

Total profit of Rs. 166.4 million is divided among REXP equity shareholders Rs. 113.99 million and share of non controlling interest Rs. 52.46 million. The EPS is calculated on Rs. 113.99 million. If the EPS is calculated on the overall profit it would be over 15/=.

Who are these holders (Non controlling interest)?

EPS is only always calculated on the Controlling Interest. As REXP owns the following percentages of its subsidiaries, only the Profit accruing from the following % holdings can be considered for REXP EPS.  

Richard Pieris Natural Foams Ltd. 43.00 %  
Micro Minerals (Pvt) Ltd. 68.75 %
Arpitalian Compact Soles (Pvt) Limited 48.93 %

The balance holdings of these subs are owned by others and these constitute the Non Controlling or Minority Interest.

REXP will certainly benefit from the rupee depreciation and now rupee is over 146 against US$ dollars. The other big benefit for REXP is reduction in corporate taxes. CT reduced from 28% to 15%

The PAT would improve by roughly 18% as per my calculation.
Earlier PAT (100-28) = 72
Now PAT (100-15) = 85
Increase in profit as a % = 13/72 * 100 = 18%

DIVIDEND ANNOUNCEMENT   
24 February 2016
Date of Announcement: - 24.Feb.2016
Rate of Dividend: - Rs.12.50 per share / Interim Dividend
Financial Year: -2015 / 2016
XD: - 04.Mar.2016
Payment: - 14.Mar.2016
Share Transfer Book Ope

My cost of REXP.N is 62.30

So when I get an interim dividend of Rs 12.50

My dividend yield is 12.50/62.30 is 20.06%... That is well above FD rate upto now... and its still an interim.

This is why I recommend Long Term holding of good shares..

I would monitor this share from now onward carefully.
This share had very massive growth stages and price jumps.

Best not to expect either big time.

However, still the environment is okay for REXP to continue with earnings . Don;t expect big things is what I am saying ( like 100% share gains )

Thanx SLS

When a share is under your Radar we all are safe..

One problem for my mind set is once I am happy with my average and quote like above with comparison with FD rate, it prevent me further buying and since it is increasing the average.

That is one mistake in my calculations...

Thanks YK.
Wow.
(Mine was 72 and exited when it reached 145 and re-entered much later and much higher too but still in GREEN).
Hope RICH will follow suit with a reasonably good announcement.

yellow knife wrote:DIVIDEND ANNOUNCEMENT   
24 February 2016
Date of Announcement: - 24.Feb.2016
Rate of Dividend: - Rs.12.50 per share / Interim Dividend
Financial Year: -2015 / 2016
XD: - 04.Mar.2016
Payment: - 14.Mar.2016
Share Transfer Book Ope

Kith

I ve seen Mother and Son relationship among shares...

Subsidiaries declare fantastic dividends as poor father need more money.. But father ( the holding company) is very careful ( to pay dividends as money go out)....

So, father is a miser, unlike his prodigal sons ?

yellow knife wrote:Kith
I ve seen Mother and Son relationship among shares...
Subsidiaries declare fantastic dividends as poor father need more money.. But father ( the holding company) is very careful ( to pay dividends as money go out)....

Kithsiri.

Did you ever see the multiple comments and even a warning I gave about RICH long time ago. If you read, you may no why they might be holding off the rich dividends till now.

Yet to please holders they might give something. But it is not wise for RICH to give big dividend at this time ( but it up to them)

yellow knife wrote:My cost of REXP.N is 62.30

So when I get an interim dividend of Rs 12.50

My dividend yield is 12.50/62.30 is 20.06%... That is well above FD rate upto now... and its still an interim.

This is why I recommend Long Term holding of good shares..

Hmmm.. good example.. its always nice to hold good shares at lower entering prices but for ppl who enter above 200, its not gonna be good..

Even if u go to hell, shud make sure u arrive early they say.. ha haa

yellow knife wrote:My cost of REXP.N is 62.30

So when I get an interim dividend of Rs 12.50

My dividend yield is 12.50/62.30 is 20.06%... That is well above FD rate upto now... and its still an interim.

This is why I recommend Long Term holding of good shares..

yellow knife you are a real long term holder.

Congrats YK. REXP went up too fast from 40/= to 330/= and came down. I got in only around 200/= and sold more than half of my holdings around 280/=. I would buy if it comes below 220/=. The reason why I chose REXP is because I did not have much shares to select when Yahapalanaya went on a rampage against all blue chips and imposed super gain taxes on many companies which resulted in a disaster last year March.

Generous companies pay generous dividends to the shareholders. The dividends are the only consolation for poor frustrated shareholders at this moment. Some relief.

This is an interim dividend and there may be a final dividend.

There are many positives for REXP in the medium term.
1) Reduction of corporate tax to 15% would increase the profit by 18%
2) As Rappaport said, rupee may depreciate by 10% to 15% against US$. This would boost REXP profit considerably.
3) For the year 2015/16, REXP may report an EPS of over Rs. 32. and declare a dividend closer to 20/= or more. (REXP didn't declare a dividend in October 2015 as they had to pay Super gain taxes. A divided was due in Oct 2015)
4) Even there is no growth in 2016/17, REXP may still report an EPS of over 40/= due to reduction in CT and rupee depreciation.

This is only my personal view and please do your own research before making an investment decision.

This is not criticizing .. but my view on the points presented ...

Future123 wrote:There are many positives for REXP in the medium term.
2) As Rappaport said, rupee may depreciate by 10% to 15% against US$. This would boost REXP profit considerably.

10-15% increase in Rs to $ rate !!!!!
Say what ?
Thats like Rs at 160 to 168 for $ . Really?
Did Rapa say that too?

So if $ is allowed to go up 15% , what about other companies , CSE, Sri lankan economy.

REXP is just one company. There are lot of other things to consider.

Future123 wrote:
3) For the year 2015/16, REXP may report an EPS of over Rs. 32. and declare a dividend closer to 20/= or more. (REXP didn't declare a dividend in October 2015 as they had to pay Super gain taxes. A divided was due in Oct 2015)

The dividend they declared today makes up more than the combined amount they gave via 2 dividends last year. So this dividend maybe (better be ) the only one ( for REXP sake) for 2016 financial year.

Future123 wrote:
4) Even there is no growth in 2016/17, REXP may still report an EPS of over 40/= due to reduction in CT and rupee depreciation.

Hmm... In any case even if they can come up with Rs 40 eps somehow ( lets see) it does not mean it should be a Rs 400-500 share. I already warned before for public concern. If it gets pushed too far it will fall burning many people .

Let me point out something, you may not like to hear. Unless REXP come up with a magic eps for March ( which I doubt), REXP at Rs 250 is overvalued compared to other good companies trading in this market. But going by future possibility, Rs 250 is kind of okay for now.

This is not demotion for REXP in anyway. As I said, REXP earning potential is still there.

But sometimes 1+1 != 2 ( != means not equal)


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I am sorry Future. I know you rep me sometimes. You agree with me sometimes.
So I may risk loosing that for saying this.
But I have to go with my heart and conscious here.

I noted sometimes you are extreme ( negative or positive) .

a) I saw too much positivity with poultry/BFL when you quoted big numbers ( like RS 350 etc) and didn't like what I said then even to make sense. I guess you may have sold BFL then right?


Btw, I just got to know ( and checked myself) in cyber space, certain parties who went to the moon with poultry and some shares is now all of a sudden saying ............................!
Wow.


b) Then I saw your big negative views on government.


So what I request is best we play balanced. It will bring you peace of mind too.