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

» කොටස් වෙළඳපොළ2020
by කොටස් වෙළඳපොළ2020 Today at 11:52 am

» 14 May onwards -Road Clear to Enter one of the Asias Most Undervalued Stock Market
by kalu351 Today at 6:34 am

» Plantation Sector
by කොටස් වෙළඳපොළ2020 Yesterday at 10:13 pm

» FUTURE of BROWNS INVESTMENT PLC (BIL)
by ONTHEMONEY Yesterday at 9:50 pm

» Company Financials or Group Financials?
by ronstyn53 Yesterday at 8:07 pm

» Banking Sector Analysis
by ADVENTUS Yesterday at 7:34 pm

» CHEVRON LUBRICANTS LANKA PLC ((LLUB.N0000)
by Bakkabwoi Yesterday at 5:24 pm

» Sri Lanka Bonds Go From Asia’s Worst to Best After China Loan
by J-CAT Yesterday at 3:58 pm

» Grain Elevators Earnings Review With Q1 Results
by EquityChamp Yesterday at 10:11 am

» What will happen tomorrow?
by Lakshman wijayawardhana Yesterday at 9:57 am

» Most Undervalued Shares
by Lakshman wijayawardhana Yesterday at 9:54 am

» Future of Talawakelle Plantation PLC
by කොටස් වෙළඳපොළ2020 Yesterday at 5:02 am

» GLAS will be winner with Super Gain.
by invest thinker Thu May 13, 2021 11:59 am

» NEVER GIVE UP BECAUSE: Stock market for beginners
by Asoka Samarakone Wed May 12, 2021 9:37 pm

» Make it your goal to stay positive in a negative market
by reyaz Wed May 12, 2021 9:01 pm

» Daily Foreign Transactions
by Pradeep90 Wed May 12, 2021 8:32 pm

» Ban of chemical fertilizers is a great news
by samaritan Wed May 12, 2021 9:59 am

» SANASA DEVELOPMENT BANK PLC (SDB.N0000)
by samaritan Wed May 12, 2021 9:48 am

» Price prediction on GRAN and TAFL
by Antonym Wed May 12, 2021 8:47 am

» CENTRAL INDUSTRIES PLC (CIND.N0000)
by Bakkabwoi Wed May 12, 2021 12:25 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™ » Texture Jersy Urning Updadate NDB Stock Brokers

Texture Jersy Urning Updadate NDB Stock Brokers

Go down  Message [Page 1 of 1]

D.G.Dayaratne


Senior Vice President - Equity Analytics
Senior Vice President - Equity Analytics





Move to Inbox

More






x














TJL recorded a 11.6% YoY revenue growth in 3QFY14/15 with revenue crossing the LKR 3.7 Bn mark. This was due to the growth in demand from TJL’s main customers (Victoria Secret, Marks & Spencer, Intimissimi and Lidl). The higher volumes were successfully met by operating at full capacity after the 10-12% capacity expansion that was carried out last year. TJL’s long standing relationship with its main clients, guarantees a strong order book in the medium term. Hence, we forecast a three year revenue CAGR of 6.8%.


Growth in value added products enhance margins


An increase in the volumes of value added products positively impacted TJL’s margins. Margins improved to 12.8% in 3QFY14/15 from 10.6% in the corresponding quarter of FY13/14. Additionally, the higher volumes led to cost savings from economies of scale positively impacting margins. Furthermore, despite the 20.5% drop in cotton prices YoY, TJL managed to maintain its selling prices during the quarter. However, this could be due to a possible 3-4 month time lag between cotton and yarn prices which may impact TJL’s selling prices in 4QFY14/15. In anticipation of this pricing risk, the management indicated that TJL is looking at negating the impact by proactively working towards boosting order volumes. Hence, we maintain the three year net profit CAGR of 10.1%.


Reiterates Buy


Since our last update in November 2014, the counter has gained 9.6% in comparison to the 5.0% decline in the ASPI. TJL continues to maintain its sustainable dividend policy, attractive balance sheet position and strong growth potential generating an intrinsic value of LKR 26.50. The target price creates a potential upside of 16.6% to the current price. Hence, we recommend a BUY.

Cash rich, debt free balance sheet


TJL managed to maintain its near debt free balance sheet with a net cash position of LKR 1.65 Bn. However, higher requirement for working capital from the capital expansion combined with the decline in interest rates on dollar deposits led to the net cash balance declining by 29.0% YoY as at December 2014.


Extended testing phase for multi fuel boiler plant


The anticipated cost savings through the multi fuel boiler plant was not materialised due to fine tuning work being undertaken to achieve the expected efficiencies during the testing phase in accordance to the management. We contemplate that the savings will materialise from FY15/16.  Nevertheless, TJL benefited by the cost savings on electricity after the decline in electricity tariffs of 25.0% that was initiated in November last year.


--

Thanks & Best Regards.



NDB Securities (Pvt) Ltd.
5th Floor, NDB Building,
40, Nawam Mawatha,
Colombo 02

Sri Lanka.



Email:    research@ndbs.lk

Web:     www.ndbs.lk

Tele:     +9411 2131000

Fax:      +9411 2314181

This e-mail message is confidential. The information transmitted with it is intended only for the use of the individual or entity to which it is addressed and may contain information that is confidential, and or privileged/material. If you are not the intended recipient or the responsible person for delivery of the message to such person, you are notified that any review, retransmission, disclosure, dissemination, distribution, printing, copying, other use of or taking any action in reliance on the content of this e-mail and any files transmitted with it in whole or in part is strictly prohibited. If you have received this e-mail in error, please notify NDB Securities (Pvt) Ltd. immediately by e-mail or telephone and delete or destroy all copies of the original message and attachments thereto without review. E-mail transmission is not secure or error-free as information could be intercepted, corrupted, lost, destroyed, delayed, and incomplete and or contain viruses. NDB Securities (Pvt) Ltd does not accept liability for any damage caused by this e-mail.

Thank you

NDB Securities (Pvt) Ltd,5th Floor, NDB Building, No 40, Nawam Mawatha, Colombo 02, Sri Lanka, Email: mail@ndbs.lk , Tel:+94112131000
Attachments area
Preview attachment TJL Earnings Update 05.02.15.pdf
[PDF]

Click here to Reply or Forward
3.74 GB (24%) of 15 GB used
Manage
©2015 Google - Terms - Privacy
Last account activity: 7 hours ago
Details


People (2)
Research NDBS
Show details
What's New
TJL Earnings Update 05.02.15.pdf
Page 1 of 5

N D B Securities (Pvt) Ltd,

5

th Floor,

# 40, NDB Building,

Nawam Mawatha,

Colombo 02.

Tel: +94 11 2131000

Fax: +9411 2314180

+9411 2314181

Research Team – Sidath Kalyanaratne, Vaishalie Shakespeare, Raguram Raamakrishnan, Upul Atapattu, Dhinali Peiris, Tharindra Gooneratne

Manufacturing Sector

0

4

8

12

16

14

16

18

20

22

24

26

Volume Price Adjusted ASPI

LKR Volume, Mn

FY11/12(A) FY12/13(A) FY13/14(A) FY14/15(E) FY15/16(E) FY16/17(E)

Turnover (USD) 109,393,204 84,443,330 97,867,362 106,066,588 108,718,253 118,720,332

Net Profit (USD) 5,614,423 7,833,657 8,894,969 10,417,661 10,868,199 11,865,368

Gross Profit Margin 10.87% 11.59% 11.45% 12.20% 12.76% 13.09%

EPS (LKR) 0.96 1.55 1.76 2.08 2.24 2.52

Forward P/E (X)* 7.40 6.39 8.98 9.89 9.20 8.18

DPS (LKR) 0.48 1.24 1.30 1.35 1.46 2.01

Dividend Yield 6.76% 12.53% 8.23% 6.57% 7.06% 9.78%

BV (LKR) 8.35 8.78 9.73 11.12 12.29 13.19

PBV (X) 0.85 1.13 1.62 1.85 1.68 1.56

*Forward P/E for the forecast period has been calculated using the current share price. P/E for FY11/12 to FY13/14 has been

calculated using year end share price.

Share Data

Market Price as at 02.01.15 LKR 22.70

52 Week Range LKR 15.10 - LKR 23.60

Shares in Issue 660,752,465

Average Daily Volume (52 Weeks) 752,773

Estimated Free Float 30.54%

Main Shareholders As at 31.12.2014 No of Shares %

Pacific Textured Jersey Holdings Ltd 262,001,464 39.65%

Brandix Lanka Ltd 197,000,976 29.81%

Y. S. H. I Silva 19,057,500 2.88%

Melstacorp Ltd 12,622,428 1.91%

Deutsche Bank Ag Singapore-DSS A/C Navis Yield Fund 11,132,219 1.68%

Price Performance

Textured Jersey Lanka PLC (TJL)

Earnings update

Main clients boost volumes – TJL recorded a 11.6% YoY

revenue growth in 3QFY14/15 with revenue crossing the

LKR 3.7 Bn mark. This was due to the growth in demand

from TJL’s main customers (Victoria Secret, Marks &

Spencer, Intimissimi and Lidl). The higher volumes were

successfully met by operating at full capacity after the 10-

12% capacity expansion that was carried out last year. TJL’s

long standing relationship with its main clients, guarantees

a strong order book in the medium term. Hence, we

forecast a three year revenue CAGR of 6.8%.

Growth in value added products enhance margins – An

increase in the volumes of value added products positively

impacted TJL’s margins. Margins improved to 12.8% in

3QFY14/15 from 10.6% in the corresponding quarter of

FY13/14. Additionally, the higher volumes led to cost

savings from economies of scale positively impacting

margins. Furthermore, despite the 20.5% drop in cotton

prices YoY, TJL managed to maintain its selling prices during

the quarter. However, this could be due to a possible 3-4

month time lag between cotton and yarn prices which may

impact TJL’s selling prices in 4QFY14/15. In anticipation of

this pricing risk, the management indicated that TJL is

looking at negating the impact by proactively working

towards boosting order volumes. Hence, we maintain the

three year net profit CAGR of 10.1%.

Reiterates Buy – Since our last update in November 2014,

the counter has gained 9.6% in comparison to the 5.0%

decline in the ASPI. TJL continues to maintain its sustainable

dividend policy, attractive balance sheet position and strong

growth potential generating an intrinsic value of LKR 26.50.

The target price creates a potential upside of 16.6% to the

current price. Hence, we recommend a BUY.

Target Price – LKR 26.50

Recommendation – BUY

Analysts – Vaishalie Shakespeare

Date – 05.02.2015
Page 1 of 5
Page 2 of 5

NDB Securities (Pvt) Ltd – Textured Jersey Lanka PLC – 5th February 2015 2

Cash rich, debt free balance sheet- TJL managed to maintain its near debt

free balance sheet with a net cash position of LKR 1.65 Bn. However, higher

requirement for working capital from the capital expansion combined with

the decline in interest rates on dollar deposits led to the net cash balance

declining by 29.0% YoY as at December 2014.

Extended testing phase for multi fuel boiler plant – The anticipated cost

savings through the multi fuel boiler plant was not materialised due to fine

tuning work being undertaken to achieve the expected efficiencies during

the testing phase in accordance to the management. We contemplate that

the savings will materialise from FY15/16. Nevertheless, TJL benefited by

the cost savings on electricity after the decline in electricity tariffs of 25.0%

that was initiated in November last year.
Page 2 of 5
Page 3 of 5

NDB Securities (Pvt) Ltd – Textured Jersey Lanka PLC – 5th February 2015 3

Income Statement

Figures in USD FY11/12(A) FY12/13(A) FY13/14(A) FY14/15(E) FY15/16(E) FY16/17(E)

Sales 109,393,204 84,443,330 97,867,362 106,066,588 108,718,253 118,720,332

Cost of Sales (97,504,078) (74,653,038) (86,665,853) (93,123,623) (94,840,683) (103,179,505)

Gross Profit 11,889,126 9,790,292 11,201,509 12,942,965 13,877,570 15,540,827

Selling and Administrative Expenses (4,486,628) (2,649,605) (3,220,804) (3,529,810) (3,828,697) (4,229,397)

Operating Profit 7,402,498 7,365,043 8,106,738 10,322,969 10,572,582 11,449,150

Net Finance Cost (1,492,696) 456,168 695,687 578,099 594,854 737,968

Profit/(Loss) Before Tax 5,909,802 7,821,211 9,176,177 10,901,068 11,167,435 12,187,118

Income Tax (295,379) 12,446 (281,208) (483,407) (299,236) (321,750)

Profit/(Loss) for the Period 5,614,423 7,833,657 8,894,969 10,417,661 10,868,199 11,865,368

Balance Sheet

Figures in USD FY11/12(A) FY12/13(A) FY13/14(A) FY14/15(E) FY15/16(E) FY16/17(E)

Non-Current Assets

Property, Plant and Equipment 20,207,598 18,057,781 16,684,471 17,856,543 18,743,404 19,265,443

Capital Work-In-Progress 129,744 534,624 5,971,059 7,446,059 4,896,059 1,996,059

Intangible Assets 350,875 324,147 434,263 390,697 368,023 386,017

Receivables and Prepayments 714,955 736,905 706,827 706,827 706,827 706,827

21,403,172 19,653,457 23,796,620 26,400,126 24,714,313 22,354,346

Current Assets

Inventories 15,191,544 14,164,212 14,735,967 13,890,079 14,146,191 15,389,988

Trade and Other Receivables 11,467,043 10,910,017 10,001,146 10,839,032 11,110,007 12,132,128

Cash and Cash Equivalents 9,970,860 17,334,301 16,247,126 17,472,329 22,993,638 27,037,013

36,629,447 42,408,530 40,984,239 42,201,439 48,249,836 54,559,129

Total Assets 58,032,619 62,061,987 64,780,859 68,601,567 72,964,150 76,913,477

Equity and Liabilities

Capital and Reserves

Stated Capital 28,203,841 28,624,940 28,624,940 28,624,940 28,624,940 28,624,940

Retained Earnings 14,396,354 16,745,669 20,006,745 23,652,926 27,456,796 29,829,869

Total Equity 42,600,195 45,370,609 48,781,479 52,427,660 56,231,530 58,604,603

Non-Current Liabilities

Deferred Tax Liabilities 567,203 533,994 734,513 1,217,920 1,517,157 1,838,907

Retirement Benefit Obligations 564,723 435,175 753,358 753,358 753,358 753,358

1,131,926 969,169 1,487,871 1,971,278 2,270,515 2,592,265

Current Liabilities

Trade and Other Payables 9,178,118 12,882,560 14,114,067 13,800,615 14,055,077 15,290,863

Borrowings 5,122,380 2,839,649 397,443 402,014 407,029 425,745

14,300,498 15,722,209 14,511,510 14,202,629 14,462,106 15,716,609

Total Equity and Liabilities 58,032,619 62,061,987 64,780,860 68,601,567 72,964,150 76,913,477

Financials
Page 3 of 5
1 of 5
Displaying TJL Earnings Update 05.02.15.pdf.



Last edited by D.G.Dayaratne on Sat Feb 07, 2015 4:24 pm; edited 1 time in total (Reason for editing : correction)

Teller

Teller
Moderator
Moderator
Thanks buddy


_________________




Teller said is said..

Back to top  Message [Page 1 of 1]

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