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Research & Reports

 

Our in-depth knowledge of the competitive share markets have been accumulated in the form of the following reports. The intensive research that has gone into each one of these reports have furthered our understanding and helped us stay competitive.

 

 

Weekly Reports
Weekly_24_English
The Colombo Bourse extended the previous week’s lacklustre momentum to conclude yet another week in a negative note. The ASI shed 88 points WoW to close at 6,219.4 points (-1.4%), whilst the S&P SL 20 Index lost 46.12 points WoW to close at 3,504.4 points (-1.3%). Indices dipped mainly on the back of losses made by Nestle Lanka (-4% WoW), Commercial Bank of Ceylon (-3.8% WoW), Chevron Lubricants Lanka (-6.9% WoW), Dialog Axiata (-2.2% WoW) and Cargills Ceylon (-3.3% WoW).
Weekly_24_Sinhala
Weekly_24_Tamil
Weekly_23_English
Both indices shed considerable value amidst relatively lower turnovers and volumes. Average turnover and average volume for the week was recorded at LKR 971.1 mn and LKR 25.6 mn respectively. The ASI shed 155.6 points WoW to close at 6,307.4 points (-2.4%), whilst the S&P SL20 Index lost 95.9 points WoW to close at 3,550.5 points (-2.6%). Indices dipped mainly on the back of the losses made by John Keells Holdings (-6.5% WoW), Ceylon Tobacco (-3.0% WoW), Dialog Axiata (-5.3% WoW), Distilleries Company of Sri Lanka (-4.0% WoW) and Lion Brewery (-6.9% WoW).
Company Reports
Asian Hotels and Properties INTERIM UPDATE - 3QFY13
AITKEN SPENCE (SPEN) Initiation of coverage
We initiate our coverage on Aitken Spence with a Long Term Buy recommendation in lieu of its investments in growth sectors of the Sri Lankan economy including tourism, logistics and power distribution counterbalanced by the uncertainty over the future of the firm’s investments in the power segment. SPEN which commands both foreign institutional and high net worth interest is currently trading at a slight discount based on a DCF valuation reflecting a 3year forward revenue and earnings CAGR of 14% and 9% respectively. We initiate our coverage on Aitken Spence with a Long Term Buy recommendation in lieu of its investments in growth sectors of the Sri Lankan economy including tourism, logistics and power distribution counterbalanced by the uncertainty over the future of the firm’s investments in the power segment. SPEN which commands both foreign institutional and high net worth interest is currently trading at a slight discount based on a DCF valuation reflecting a 3year forward revenue and earnings CAGR of 14% and 9% respectively. We initiate our coverage on Aitken Spence with a Long Term Buy recommendation in lieu of its investments in growth sectors of the Sri Lankan economy including tourism, logistics and power distribution counterbalanced by the uncertainty over the future of the firm’s investments in the power segment. SPEN which commands both foreign institutional and high net worth interest is currently trading at a slight discount based on a DCF valuation reflecting a 3year forward revenue and earnings CAGR of 14% and 9% respectively.
AHUN INTERIM UPDATE-3QFY13
Aitken Spence Hotel Holdings ( AHUN) witnessed a strong growth in revenue for 9MFY13 amidst the adverse economic environment witnessed in the country and the world. However, the group’s reported earnings for 3QFY13 was below our expectation and was below its 3QFY12 results despite 4Q2012 being the peak season for tourism sector in Sri Lanka as well as in Maldives and the group enjoying YoY benefit from the LKR depreciation ( LKR depreciated c. 15% from 4Q2011 to 4Q2012 ) . We believe that the drop in occupancy level witnessed in Sri Lanka and Maldives coupled with the limited growth in tourist arrivals in Maldives would have attributed to this. Aitken Spence Hotel Holdings ( AHUN) witnessed a strong growth in revenue for 9MFY13 amidst the adverse economic environment witnessed in the country and the world. However, the group’s reported earnings for 3QFY13 was below our expectation and was below its 3QFY12 results despite 4Q2012 being the peak season for tourism sector in Sri Lanka as well as in Maldives and the group enjoying YoY benefit from the LKR depreciation ( LKR depreciated c. 15% from 4Q2011 to 4Q2012 ) . We believe that the drop in occupancy level witnessed in Sri Lanka and Maldives coupled with the limited growth in tourist arrivals in Maldives would have attributed to this. Aitken Spence Hotel Holdings ( AHUN) witnessed a strong growth in revenue for 9MFY13 amidst the adverse economic environment witnessed in the country and the world. However, the group’s reported earnings for 3QFY13 was below our expectation and was below its 3QFY12 results despite 4Q2012 being the peak season for tourism sector in Sri Lanka as well as in Maldives and the group enjoying YoY benefit from the LKR depreciation ( LKR depreciated c. 15% from 4Q2011 to 4Q2012 ) . We believe that the drop in occupancy level witnessed in Sri Lanka and Maldives coupled with the limited growth in tourist arrivals in Maldives would have attributed to this.
Asian Hotels and Properties INTERIM UPDATE - 2QFY13
The group achieved commendable financial performance during 2QFY13, posting its best first half year revenue and profits achieved so far in history. However, the group’s long term sustainability of earnings growth is still under challenge due to entrance of rivals in the medium to long term and unavailability of property development projects.
Sector Reports
Plantation Sector 2012
TILE SECTOR UPDATE - 2012
Quarterly Earnings Update-Dec'2011
Overall market earnings of the Colombo bourse recorded 2.3% QoQ growth achieving LKR39bn during the Dec’2011 quarter, meanwhile total earnings depicts 2.5% YoY growth in comparison to corresponding Dec’2010 earnings of LKR38bn
The Lankan Economic Dilemma
Despite the weak global outlook, the volatile situation that is currently prevailing in the region surrounding the Strait of Hormuz through which almost 20% of the world’s oil requirements pass through has triggered a flurry of precautionary demand which has pushed a barrel of crude oil above USD110.
NEWS & EVENTS