UML,CTC,AAIC,TPL,KHL results

Slstock · 1 UML,CTC,AAIC,TPL,KHL results Mon Jul 30, 2012 5:20 pm

Slstock

Director - Equity Analytics

Posts : 6610
Equity Stars : 13383
Reputation : 1158
Join date : 2011-01-22

June results.

AAIC http://www.cse.lk/cmt/upload_report_file/364_1343641786806.pdf
CTC http://www.cse.lk/cmt/upload_report_file/460_1343646719345.pdf
UML http://www.cse.lk/cmt/upload_report_file/697_1343639561118.pdf
TPL http://www.cse.lk/cmt/upload_report_file/726_1343640475.pdf
KHL http://www.cse.lk/cmt/upload_report_file/561_1343645604497.pdf

Last edited by Monster on Mon Jul 30, 2012 6:09 pm; edited 1 time in total (Reason for editing : Wrong interim report links are corrected)

Monster · 2 Re: UML,CTC,AAIC,TPL,KHL results Mon Jul 30, 2012 6:04 pm

Monster

Senior Vice President - Equity Analytics

Posts : 1708
Equity Stars : 8191
Reputation : 279
Join date : 2011-01-22

slstock wrote:June results.
UML http://www.cse.lk/cmt/upload_report_file/697_1343639561118.pdf

What an impressive quarter result by UML. Net profit for the quarter is Rs 968 million, which is 136% more than the same period last year. Net asset value is Rs 95/-. It seems duty reduction is not still effected this company. It will delighted to see the DIMO result.

As of past earnings, UML and DIMO are massively undervalued. No doubt.

dineshfernando · 3 Re: UML,CTC,AAIC,TPL,KHL results Mon Jul 30, 2012 7:01 pm

dineshfernando

Senior Manager - Equity Analytics

Posts : 573
Equity Stars : 5860
Reputation : 32
Join date : 2011-02-05

I'm really shocked to see UML results. It is tooooo good to be true.

The EPS been increasing every quarter irrespective of increase in duties. This is massively undervalued.

I think crowd reacted too much for the increase of duty and brought the price to shit level.

Can we expect a similar performance from DIMO which is massively undervalued?

Harry82 · 4 Re: UML,CTC,AAIC,TPL,KHL results Mon Jul 30, 2012 7:05 pm

Harry82

Senior Vice President - Equity Analytics

Posts : 2365
Equity Stars : 8784
Reputation : 54
Join date : 2012-01-18
Age : 42
Location : Colombo

tomorrow bull run share is UML sunny

stoka · 5 Re: UML,CTC,AAIC,TPL,KHL results Mon Jul 30, 2012 7:59 pm

stoka

Senior Equity Analytic

Posts : 57
Equity Stars : 4921
Reputation : 0
Join date : 2011-02-19

UML Jan-March Qtr EPS is around 10. For Mar-Jun it is around 6. So earnings have declined from last Qtr. Isn't it?

Harry82 · 6 Re: UML,CTC,AAIC,TPL,KHL results Mon Jul 30, 2012 8:34 pm

Harry82

Senior Vice President - Equity Analytics

Posts : 2365
Equity Stars : 8784
Reputation : 54
Join date : 2012-01-18
Age : 42
Location : Colombo

Jan - march around 10
march - June around 14.5.
50 % up

opfdo · 7 Re: UML,CTC,AAIC,TPL,KHL results Mon Jul 30, 2012 8:51 pm

opfdo

Vice President - Equity Analytics

Posts : 1313
Equity Stars : 7887
Reputation : 136
Join date : 2011-05-26
Location : Sri Lanka

stoka wrote:UML Jan-March Qtr EPS is around 10. For Mar-Jun it is around 6. So earnings have declined from last Qtr. Isn't it?

hello mr/miss/mrs. stoka,

your comparison is wrong. if you want to compare the results, compare with same qtr last year. it is more realistic.

opfdo · 8 Re: UML,CTC,AAIC,TPL,KHL results Mon Jul 30, 2012 9:06 pm

opfdo

Vice President - Equity Analytics

Posts : 1313
Equity Stars : 7887
Reputation : 136
Join date : 2011-05-26
Location : Sri Lanka

dineshfernando wrote:I'm really shocked to see UML results. It is tooooo good to be true.

The EPS been increasing every quarter irrespective of increase in duties. This is massively undervalued.

I think crowd reacted too much for the increase of duty and brought the price to shit level.

Can we expect a similar performance from DIMO which is massively undervalued?

this is why Mr. Yatawara has bought between 65-73, this is why foreigners bought 60000 shares @65 levels.

I told this in previous few threads too.

hariesha · 9 Re: UML,CTC,AAIC,TPL,KHL results Mon Jul 30, 2012 9:22 pm

hariesha

Vice President - Equity Analytics

Posts : 1058
Equity Stars : 7292
Reputation : 34
Join date : 2011-03-14

opfdo wrote:

stoka wrote:UML Jan-March Qtr EPS is around 10. For Mar-Jun it is around 6. So earnings have declined from last Qtr. Isn't it?

hello mr/miss/mrs. stoka,

your comparison is wrong. if you want to compare the results, compare with same qtr last year. it is more realistic.

Nothing wrong in analyzing Q by Q results. It gives more efficient update on latest developments in the company. In Motor sector it's really important analyzing Q by Q results. If Q by Q results are decreasing it Shows Company is going through some tuff times. When you compare Y on Y it only gives performance comparatively for last year same period. This will not give current macro-economic conditions affecting to the results of the company.

But with regards to UML results, it shows YOY growth as well as Q by Q growth in profits. This may be due to the fact though economic conditions and tax structures are affecting the industry, company is enjoying higher margins, as they had a very good stock of vehicles in their yards before the tax revision. Their Q by Q GP margin has increased from 22% to 26%.

Q by Q analysis is not making sense for the companies that have earnings seasons, such as hotels, chickens, insurance, clothing, etc. But for motor sector Q by Q analysis is a must.

Hawk Eye · 10 Re: UML,CTC,AAIC,TPL,KHL results Mon Jul 30, 2012 11:13 pm

Hawk Eye

Expert

Posts : 896
Equity Stars : 6856
Reputation : 44
Join date : 2011-03-13

Annual Report 2011/12 pg 20........significant growth area was vehicle imports under government permits. During the year under review nearly 3,000 orders were placed by permit holders for a high end Japanese vehicle, the Montero Sport. This demand was driven by our ability to offer a high-end vehicle at the permit value of US$ 25,000, making United Motors the only company in Sri Lanka able to import a high end Japanese SUV with such features, at this competitive price. The sourcing of this vehicle was possible due to our close relationship with our Japanese principals. While a part of these SUV sales were delivered in the financial year under review, the balance will be delivered in the next financial year....

Also just check the Inventory figures last year

Rapaport · 11 Re: UML,CTC,AAIC,TPL,KHL results Mon Jul 30, 2012 11:41 pm

Rapaport

Assistant Vice President - Equity Analytics

Posts : 681
Equity Stars : 5742
Reputation : 55
Join date : 2011-02-01

yes Montero sports are srtill rolling out.

Also i really dont see further taxes coming for the vehicle sector. There maybe a possible reduction in taxes in the medium to long term coupled with reduced interest rates (Lease) and dollar moving towards 125/- will make vehicle purchase more attractive than now! These vehicle companies are in the worse time now and things should turn around for the better for them soon! Dividen will also be around 10%

Also many Kia Sorento's for permits rolling out as well so keep an eye on COLO aswell since it seems a little neglected.

Dimo of course well diversified and Tata will help it keep going!

Cheers!

seek · 12 Re: UML,CTC,AAIC,TPL,KHL results Tue Jul 31, 2012 12:51 pm

seek

Senior Manager - Equity Analytics

Posts : 558
Equity Stars : 5005
Reputation : 21
Join date : 2012-07-13

Rapaport wrote:yes Montero sports are srtill rolling out.

Also i really dont see further taxes coming for the vehicle sector. There maybe a possible reduction in taxes in the medium to long term coupled with reduced interest rates (Lease) and dollar moving towards 125/- will make vehicle purchase more attractive than now! These vehicle companies are in the worse time now and things should turn around for the better for them soon! Dividen will also be around 10%

Also many Kia Sorento's for permits rolling out as well so keep an eye on COLO aswell since it seems a little neglected.

Dimo of course well diversified and Tata will help it keep going!

Cheers!

I too believe that the current tax rates will be relaxed in near future once the BOP is decreased to a manageable level and the pressure on the dollar is decreased. If motor sector can show such figures during their bad time, we can imagine how things will be when a friendly environment is created.

Trailing P/E is almost 2. Anyone have bearish sentiment at this level?