The Investor Sentiment - Equity and investments forum for Sri Lankans
Search
 
 

Display results as :
 


Rechercher Advanced Search

Latest topics
» අනං මනං! #/+?.<>
Today at 8:31 pm by ruwan326

» Thread for News on CSE and SL Economy
Today at 7:11 pm by NIRMALSG

» Happy Birthday
Today at 6:01 pm by Ethical Trader

» Dividend Announcement
Yesterday at 9:26 pm by nihal123

» SAMP.N0000 (SAMPATH BANK PLC)
Yesterday at 1:59 pm by LSE

» PLC.N0000 ( People's Leasing and Fiance PLC)
Yesterday at 11:15 am by Ethical Trader

» REXP.N0000 ( RICHARD PIERIS EXPORTS PLC)
Tue Mar 19, 2019 7:48 pm by smallville

» රෝගීන් වෙනුවෙන් කැප වන සෞඛ්‍ය සේවාවක් වෙනුවෙන්.....
Tue Mar 19, 2019 9:34 am by AjithR

» JEWS OF SRI LANKA: AN UNTOLD STORY
Tue Mar 19, 2019 9:22 am by කිත්සිරි ද සිල්වා

» How Small We are in the universe
Tue Mar 19, 2019 7:29 am by nihal123

» ඉස්සරහට අපි පරදින එකනම් ෂුවර් – ධම්මික ක්‍රිකට් ගැන කතා කරයි
Fri Mar 15, 2019 2:59 pm by nuwanmja

» HAYL.N0000 Hayleys PLC
Thu Mar 14, 2019 2:46 pm by yellow knife

» EAST WEST PROPERTIES PLC (EAST.N0000)
Thu Mar 14, 2019 10:57 am by slstock

» HNB.N0000 ( Hatton National Bank PLC)
Thu Mar 14, 2019 10:43 am by gTrade

» DFCC.N0000 ( DFCC BANK PLC )
Wed Mar 13, 2019 6:44 pm by serene

» DOCK.N0000 (COLOMBO DOCKYARD PLC)
Sun Mar 10, 2019 8:36 pm by NIRMALSG

» GLAS.N0000 (PIRAMAL GLASS CEYLON PLC)
Sun Mar 10, 2019 6:40 am by ruwan326

» Mobile Trading: the new BUZZ word in Capital Markets Industry!
Thu Mar 07, 2019 5:58 pm by Brenda John

» MGT.N0000
Sun Mar 03, 2019 2:48 pm by Hawk Eye

» MTD WALKERS - KAPI
Sun Mar 03, 2019 8:57 am by Jana1

» Should such people be trusted and help anymore?
Sun Mar 03, 2019 4:42 am by pjrngroup

» The messenger who couldn't deliver a message
Wed Feb 27, 2019 5:56 pm by Backstage

» SHL.N0000 (Softlogic Holdings PLC)
Wed Feb 20, 2019 8:23 am by ruwan326

» Importance of 2019 government budget
Tue Feb 19, 2019 12:13 pm by කිත්සිරි ද සිල්වා

» Emir of Qatar on a private visit to Sri Lanka till February 22
Tue Feb 19, 2019 11:19 am by Backstage

» දේවදත්තගෙන් අපායේ සිට මෛත්‍රී බුදුන් වහන්සේට එවන ලද ලිපිය...~~~
Fri Feb 15, 2019 8:24 am by ruwan326

» CONN.N0000
Wed Feb 13, 2019 8:09 pm by ruwan326

» SERV - The Kingsbury
Wed Feb 13, 2019 8:08 pm by ruwan326

» TPL.N0000 (TALAWAKALE PLANTATIONS )
Wed Feb 13, 2019 7:53 pm by ruwan326

» KVAL.N0000
Wed Feb 13, 2019 7:36 pm by ruwan326

» HAYC - Haycarb
Wed Feb 13, 2019 7:24 pm by ruwan326

» DIPD.N0000 (Dipped Products)
Wed Feb 13, 2019 7:22 pm by ruwan326

» මහජනතාව බල ගැන්වෙම්න් සිටී…
Tue Feb 12, 2019 8:23 pm by ruwan326

» VFIN - where the journey leads it?
Mon Feb 11, 2019 7:35 pm by ruwan326

» LFIN - LB Finance
Mon Feb 11, 2019 7:25 pm by ruwan326

» Sri Lanka urged to develop own narrative of China’s BRI
Mon Feb 11, 2019 2:50 pm by Backstage

» Wonder why men send photos of their genitals? Here are some theories
Mon Feb 11, 2019 11:01 am by Backstage

» Flying is the Safest mode of Transport
Sat Feb 09, 2019 8:12 am by කිත්සිරි ද සිල්වා

» LLUB.N0000 (CHEVRON LUBRICANTS LANKA PLC)
Thu Feb 07, 2019 2:24 pm by Ethical Trader

» Lanka named top tourist destination for 2016
Wed Feb 06, 2019 2:29 pm by කිත්සිරි ද සිල්වා

» A Bit of History
Wed Feb 06, 2019 2:18 pm by ruwan326

» AMF.N0000
Thu Jan 31, 2019 6:56 am by serene

» IOC Sri Lanka unit December quarter loss widens to Rs987mn
Mon Jan 28, 2019 11:02 am by ruwan326

» මූර්ත පොළියෙන් ශ්‍රී ලංකාව අංක 1ට – බ්ලූම්බර්ග් අනාවරණය කරයි
Mon Jan 21, 2019 7:18 pm by nihal123

» Obituary Notice.
Mon Jan 21, 2019 7:14 am by කිත්සිරි ද සිල්වා

» Trading Journal
Sun Jan 20, 2019 5:53 am by serene

» LDEV - Lankem Developments
Fri Jan 18, 2019 2:11 pm by ruwan326

» විශිෂ්ඨ සිල්ලර වෙළෙන්දෙකුගේ ජීවිත කතාව
Thu Jan 17, 2019 12:15 pm by Ethical Trader

» AAIC.N0000
Wed Jan 16, 2019 9:50 pm by serene

» இனிய பொங்கல்
Tue Jan 15, 2019 9:15 pm by nihal123

March 2019
SunMonTueWedThuFriSat
     12
3456789
10111213141516
17181920212223
24252627282930
31      

Calendar Calendar

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

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

Go down

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

Post by CSE.SAS on Wed Jun 14, 2017 2:37 pm

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.

CSE.SAS

Posts : 263
Join date : 2014-02-23

Back to top Go down

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

Post by Ethical Trader on Wed Jun 14, 2017 2:48 pm

Thanks CSE for sharing.
Ethical Trader
Ethical Trader
Top contributor
Top contributor

Posts : 4983
Join date : 2014-02-28

Back to top Go down

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

Post by slstock on Wed Jun 14, 2017 3:55 pm

Thanks for this.

Any banking/finance or manufacturing sector reports will be welcome.

_________________
Never listen to anyone including myself without your own study. Only few truly genuine people exist in this world.
Please read : [You must be registered and logged in to see this link.]
---------
slstock
slstock
Veteran
Veteran

Posts : 5487
Join date : 2014-06-12

Back to top Go down

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

Post by Backstage on Wed Jun 14, 2017 6:13 pm

Thanks..
Cotton prices are expected to ease this year with bumper crops expected in US, India.
Backstage
Backstage
Top contributor
Top contributor

Posts : 3345
Join date : 2014-02-24

Back to top Go down

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

Post by Future123 on 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.

Future123
Active Member
Active Member

Posts : 1435
Join date : 2014-04-09

Back to top Go down

Back to top


 
Permissions in this forum:
You cannot reply to topics in this forum