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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.

 

 

Company Reports
Piramal Glass Ceylon (GLAS) posted weaker than expected earnings for 2QFY14, largely owing to the drop in revenue and increase in operating cost. Revenue declined along with the drop in volumes witnessed especially within the food and beverage range in the Domestic segment. Further, cost of energy continues to be a challenge which has been trimming down the company margins continuously. Given that the company has not indicated any plans with regard to how it would overcome the challenge from energy cost amidst a rise in price competition in the international market and increase in threat from substitutes in the local market; we have revised down our previous estimates and the target price, and downgraded the stock to a HOLD from a BUY.
After much speculation for several months, JKH announced the details of its land mark integrated resort project, which was followed by the announcement of a rights issue attached with warrants (2 for every 3 rights subscribed) to partly fund the USD820m project. The project is planned to include apartments, a hotel, entertainment and gaming facilities, a shopping complex, a convention centre and office space, largely resembling some of the regional integrated resorts. We are optimistic of this project, largely owing to the success this model has witnessed in the region and the country’s favourable location.
Aitken Spence Hotel Holdings (AHUN) witnessed a 53% YoY growth in net earnings for 1QFY14 outperforming the peers. Larger exposure to Maldives would have possibly assisted the group, as tourist arrivals to Maldives for the quarter surged 18% YoY, whilst attracts high number of high end tourists. Hence, we continue to remain positive about the group’s earnings growth prospects and continue to maintain out previous estimates and target price.
Sector Reports
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
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.