FINANCIAL CHRONICLE™
Dear Reader,

Registration with the Sri Lanka FINANCIAL CHRONICLE™️ would enable you to enjoy an array of other services such as Member Rankings, User Groups, Own Posts & Profile, Exclusive Research, Live Chat Box etc..

All information contained in this forum is subject to Disclaimer Notice published.


Thank You
FINANCIAL CHRONICLE™️
www.srilankachronicle.com


Join the forum, it's quick and easy

FINANCIAL CHRONICLE™
Dear Reader,

Registration with the Sri Lanka FINANCIAL CHRONICLE™️ would enable you to enjoy an array of other services such as Member Rankings, User Groups, Own Posts & Profile, Exclusive Research, Live Chat Box etc..

All information contained in this forum is subject to Disclaimer Notice published.


Thank You
FINANCIAL CHRONICLE™️
www.srilankachronicle.com
FINANCIAL CHRONICLE™
Would you like to react to this message? Create an account in a few clicks or log in to continue.

Encyclopedia of Latest news, reviews, discussions and analysis of stock market and investment opportunities in Sri Lanka


Submit PostSubmit Post
ශ්‍රී ලංකා මූල්‍ය වංශකථාව - සිංහල
Submit Post



Latest topics

» SANASA DEVELOPMENT BANK PLC (SDB.N0000)
by madukp Today at 2:46 am

» DIPD/HAYC/HAYL
by cheetah Today at 12:16 am

» NATIONS TRUST BANK PLC (NTB.N0000)
by ColomboCSE Yesterday at 10:52 pm

» Sri Lanka's Debt Dynamics
by sanjeewa88 Yesterday at 7:50 pm

» TRUE VALUE OF LANKA ALUMINUM INDUSTRY (LALU)
by Wolf86 Yesterday at 7:32 pm

» Value first and BUY second !
by EquityChamp Yesterday at 7:26 pm

» Amana Takaful ATL & ATLL
by apphunter Yesterday at 6:09 pm

» Blossom March
by vijay singh Yesterday at 5:16 pm

» TILE / LWL / RCL
by subash81 Yesterday at 4:56 pm

» RICH or TKYO
by subash81 Yesterday at 4:56 pm

» LALU.N0000
by Jana Yesterday at 4:48 pm

» LANKA ALUMINIUM INDUSTRIES PLC (LALU.N0000)
by Jana Yesterday at 4:45 pm

» BROWNS INVESTMENTS PLC (BIL.N0000)
by stockchaser Yesterday at 4:33 pm

» UNHCR Fear is over 21 countries speak for us only 15 against
by Equityinvestor Yesterday at 4:06 pm

» CSE Crossings for the week
by Pradeep90 Yesterday at 12:16 pm

» SEMB SEMB
by stockchaser Yesterday at 12:09 am

» Leading brokers causing market downturn
by dhanushkacse Sat Feb 27, 2021 10:18 pm

» පෙබරවාරි මාසේ කොළඹ කොටස් වලට මොකක්ද වුනේ - බැසුවාද ? බැස්සාද ?
by Nishan Cooray Sat Feb 27, 2021 9:42 pm

» Daily Foreign Transactions
by Mithooshan Sat Feb 27, 2021 7:31 am

» SOFTLOGIC HOLDINGS PLC (SHL.N0000)
by suku502 Sat Feb 27, 2021 12:58 am

EXPERT CHRONICLE™

ECONOMIC CHRONICLE

GROSS DOMESTIC PRODUCT (GDP)


CHRONICLE™ YouTube

CHRONICLE™ NEWS PRODUCTS

FINANCIAL CHRONICLE™

Views & Reviews, Analysis, Evaluations, Discussions, Gossip and Hot Tips relating to Sri Lankan companies listed on the Colombo Stock Exchange (CSE)
Contribute




DAILY CHRONICLE™

Latest news and articles published in Newspapers, Websites, Blogs and other online news sites relating to business and investments in Sri Lanka
Contribute



ECONOMIC CHRONICLE™

This is a section that provide news, views, analysis, predications relating to Political and Socio-Economic factors and how such activities affect the Stock Market and other economic activity of the Country.

Contribute




EXPERT CHRONICLE™

This is an exclusive section for Expert Articles which will help member to share knowledge through comments and responses of the members. All members are allowed to reply and make comments to these articles.

Contribute


Submit Post


CHRONICLE™ YouTube

Youtube Videos and other visual presentations relating Stock market and other investment advise submitted by members or other contributors.

Contribute


Submit Post


කොළඔ කොටස් වෙළඳපොළේ වංශකථාව
කොළඔ කොටස් වෙළඳපොළේ ලැයිස්තුගත සමාගම් කොටස් ගැන තොරතුරු¸විශ්ලේෂණ¸සාකච්ඡා¸ කටකතා¸රසකතා යන සියල්ල අපේම සිංහලෙන් කතා කළ හැකි ‘කතා මණ්ඩපය’

Contribute

Twitter Feeds
POPULAR COMPANIES
A

ABANS ELECTRICALS PLC

ACCESS ENGINEERING PLC Hot

ACL CABLES PLC

ACL PLASTICS PLC

ACME PRINTING & PACKAGING PLC

AGSTAR PLC

AITKEN SPENCE HOTEL HOLDINGS PLC

AITKEN SPENCE PLC

ANILANA HOTELS AND PROPERTIES PLC

ARPICO INSURANCE PLC

ASIA ASSET FINANCE PLC

ASIA CAPITAL PLC

B

BAIRAHA FARMS PLC

BALANGODA PLANTATIONS PLC

BIMPUTH FINANCE PLC

BLUE DIAMONDS JEWELLERY WORLDWIDE PLC

B P P L HOLDINGS PLC

BROWNS BEACH HOTELS PLC

BROWNS INVESTMENTS PLC

C

CARGO BOAT DEVELOPMENT COMPANY PLC

CENTRAL INDUSTRIES PLC

CEYLON COLD STORES PLC

CEYLON GRAIN ELEVATORS PLC Hot

CEYLON TEA BROKERS PLC

CEYLON TOBACCO COMPANY PLC

CHEVRON LUBRICANTS LANKA PLC

COLOMBO FORT LAND & BUILDING PLC

COMMERCIAL BANK OF CEYLON PLC

CITRUS LEISURE PLC Hot

COMMERCIAL CREDIT AND FINANCE PLC

D

DANKOTUWA PORCELAIN PLC

DFCC BANK PLC

DIALOG AXIATA PLC

DIALOG FINANCE PLC

DIPPED PRODUCTS PLC

DISTILLERIES COMPANY OF SRI LANKA PLC

DUNAMIS CAPITAL PLC

E

EAST WEST PROPERTIES PLC Hot

EASTERN MERCHANTS PLC

EXPOLANKA HOLDINGS PLC

E-CHANNELLING PLC

F

FIRST CAPITAL HOLDINGS PLC

G

GALADARI HOTELS (LANKA) PLC

GUARDIAN CAPITAL PARTNERS PLC

H

HATTON NATIONAL BANK PLC

HAYLEYS PLC

HAYLEYS FABRIC PLC

HAYLEYS FIBRE PLC Hot

HEMAS HOLDINGS PLC

HIKKADUWA BEACH RESORT PLC

HNB ASSURANCE PLC

HVA FOODS PLC

J

JANASHAKTHI INSURANCE COMPANY PLC

JOHN KEELLS HOLDINGS PLC Hot

JOHN KEELLS HOTELS PLC

L

LANKA ASHOK LEYLAND PLC

LANKA IOC PLC

LANKEM CEYLON PLC

LANKEM DEVELOPMENTS PLC

LAUGFS GAS PLC

LAUGFS POWER LIMITED

LOLC FINANCE PLC

LOLC HOLDINGS PLC

LUCKY LANKA MILK PROCESSING COMPANY PLC

M

MELSTACORP PLC

N

NATIONAL DEVELOPMENT BANK PLC

NATION LANKA FINANCE PLC

NESTLE LANKA PLC

O

ORIENT FINANCE PLC

OVERSEAS REALTY (CEYLON) PLC

P

PANASIAN POWER PLC

PEOPLE'S LEASING & FINANCE PLC

PIRAMAL GLASS CEYLON PLC

PRIME FINANCE PLC

R

RAIGAM WAYAMBA SALTERNS PLC

RENUKA AGRI FOODS PLC

RENUKA CAPITAL PLC

RENUKA HOLDINGS PLC

RICHARD PIERIS AND COMPANY PLC

RICHARD PIERIS EXPORTS PLC Hot

ROYAL CERAMICS PLC

S

SAMPATH BANK PLC

SEYLAN BANK PLC

SIERRA CABLES PLC

SINGHE HOSPITALS PLC Hot

SMB LEASING PLC

SOFTLOGIC HOLDINGS PLC

SOFTLOGIC LIFE INSURANCE PLC

SRI LANKA TELECOM PLC

SWISSTEK (CEYLON) PLC Hot

T

TEEJAY LANKA PLC

TESS AGRO PLC

THREE ACRE FARMS PLC

TOKYO CEMENT COMPANY (LANKA) PLC Hot

U

UNION BANK OF COLOMBO PLC

V

VALLIBEL FINANCE PLC

VALLIBEL ONE PLC Hot

VALLIBEL POWER ERATHNA PLC

W

WASKADUWA BEACH RESORT PLC


You are not connected. Please login or register

FINANCIAL CHRONICLE™ » FINANCIAL CHRONICLE™ » Post-war profits windfall persists

Post-war profits windfall persists

Go down  Message [Page 1 of 1]

1Post-war profits windfall persists Empty Post-war profits windfall persists Tue Mar 08, 2011 3:54 am

ruwa925


Manager - Equity Analytics
Manager - Equity Analytics
Two leading broking firms are reporting strong corporate earnings forecast for December as well as March financial years, a development which is expected further to cement the post-war rebound and optimism.
John Keells Stock Brokers (JKSB) in its 2011 Sri Lanka Market Strategy Document said that corporate earnings growth has also been strong with expectations for a 108% year on year (yoy) growth in earnings to Rs. 33.78 billion for the current Dec/Mar financial year as businesses benefit from low finance expense and increased capacity utilisation.
“The increase in volume driven growth across most sectors has resulted in several listed entities crossing breakeven thresholds and returning to profitability.

Increased volumes are driving core earnings higher whether it is excess liquidity in the banks being mopped up by sharp growth in private sector credit, or increased capacity utilisation at manufacturing plants, higher occupancy levels at hotels or even a modest rise in minutes of use among mobile phone subscribers,” JKSB said.
It noted that the current December 2010 quarterly results for 192 companies reported filings thus far in the earnings season amount to 84% yoy growth.
According to JKSB earnings are also driven by lower finance expense which has helped drive increased private investment with private sector credit growth expanding by over 25% in 2010. Downward revisions in taxation will enhance earnings prospects further in tandem with increased volumes. Businesses will benefit from increased domestic demand in the medium but will also be required to invest in building scale and enhancing productivity in anticipation of new competition that is inevitably ushered in by an improved operating environment.
NDB Stockbrokers in a special report providing an earnings snapshot said that total profits of a sample set of companies selected to represent the overall market increased 74% YOY (excluding non-recurring gains) to Rs.69,357 mn in FY10/11 (9 months) from Rs.39,881 mn in FY09/10 (9 months).
It said results of 15 companies out of them were for 12 months (FY 10). Hotels & Travels recorded the highest profit growth (927%). Although Healthcare sector posted 901% profit growth, excluding exceptional gains it stood at 297%. Bank, Finance and Insurance, Diversified and Telecommunication were the other sectors which witnessed non-recurring gains/losses. Excluding the effect of those items the earnings growth rates were 28%, 36% and 805% respectively.
Banks, Finance and Insurance, Diversified and Beverage, Food and Tobacco were the sectors which contributed mostly to the profit figures in absolute terms, NDB Stockbrokers added.

Here for the long haul” says JKSB in its upbeat 2011 market strategy

John Keells Stock Brokers (JKSB) has released its 2011 Sri Lanka Market Strategy document titled “Here for the long haul” conveying an upbeat outlook for the economy, listed firms and investors in equities.
A highly useful document for investors as well as other stakeholders, the report has a quick Country Fact Sheet and an Executive Summary in addition to providing brief overviews on politics and economy. Its key highlight is its market overview and strategy in addition to featuring the investment case on 12 companies, namely Commercial Bank, HNB, Sampath Bank, NDB Bank, Tokyo Cement, Royal Ceramics, Colombo Dockyard, Distilleries Company, Aitken Spence Hotel Holdings, Dialog Axiata, Aitken Spence Plc and John Keells Holdings.

JKSB said that businesses will benefit from increased domestic demand in the medium but will also be required to invest in building scale and enhancing productivity in anticipation of new competition that is inevitably ushered in by an improved operating environment.
“We remain bullish on the medium to long term earnings growth prospects of construction related manufacturing, banking and leisure group stocks. A medium term outlook of sustainable normalised earnings of approximately 25% should see the index trend higher over the medium to long term,” JKSB opines in the 2011 Sri Lanka Market Strategy document.
Following is the executive summary of the report whilst highlights of it will be published in detail tomorrow.
With the peace dividend filtering in, the economy is expected to have grown at 8% in CY2010 having gathered healthy momentum with 5 consecutive quarters of accelerating growth from 2Q2009 to 2Q2010.
The economy has witnessed a significant improvement in business sentiment and business activity stemming from a benign interest rate regime and fiscal reforms resulting in a lower and simplified taxation and tariff structure. Furthermore overall macro level stability and an increased infrastructure spend together with an upturn in domestic demand have collectively underpinned a strengthened economy.
The resurgence of intra provincial trade with the reintegration of the North and East provinces to the main stream economy and the significant infrastructure spend across the island in road, power, port and rural infrastructure development together with the consequent multiplier effects feeding into increased domestic consumption underlie our medium term expectations of 8%+ GDP expansion. Sustaining this growth momentum beyond will however require a significant increase in FDI across a number of sectors to drive scale and productivity enhancements in the economy.
We anticipate the fiscal deficit would decline to 7% of GDP for 2011 stemming from lower interest expense on domestic financing, higher tax revenues and lower defence expenditure relative to GDP.
The loss of crop production due to the floods earlier this year will add further supply side pressure on food prices which we expect would push the CCPI up to 8.8% by end 2011. The property market is still relatively subdued and non-food and non-fuel inflation still remains under check although demand driven inflationary effects may begin to be evident towards the latter half of the year. The immediate concerns for this year on inflation remain on supply side shocks from food and more significantly the impact on oil prices from the recent events in North Africa and the Middle East. With inflation trending higher we believe that interest rates have bottomed out and prime lending rates may rise by 50bps by year end with prospects of strong credit growth remaining intact.
The ASPI has risen by 16.2% for the year to date on the back of a 96% increase in CY10 and a 280% increase since the end of the war. The recent upward movement in the ASPI is largely a result of strong retail and local HNI participation which has seen significant price movements in second tier and illiquid stocks not necessarily reflective of broad based healthy buying interest.
Sustained local retail buying interest in the market has pushed near term market multiples to 15.2x FY12E earnings, with aggressive buying on selected mid cap and speculative trading on illiquid counters having pushed the indices higher at an excessive pace thus far this year warranting a modest correction.
Businesses will benefit from increased domestic demand in the medium but will also be required to invest in building scale and enhancing productivity in anticipation of new competition that is inevitably ushered in by an improved operating environment
We remain bullish on the medium to long term earnings growth prospects of construction related manufacturing, banking and leisure group stocks. A medium term outlook of sustainable normalised earnings of approximately 25% should see the index trend higher over the medium to long term

Back to top  Message [Page 1 of 1]

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