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KEGALLE PLANTATIONS PLC (KGAL.N0000)

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26KEGALLE PLANTATIONS PLC  (KGAL.N0000) - Page 2 Empty Re: KEGALLE PLANTATIONS PLC (KGAL.N0000) Tue Mar 27, 2012 10:21 pm

Gaja


Associate Director - Equity Analytics
Associate Director - Equity Analytics

npp wrote:these two dividends should considerably reflect in RICH's dividend also I'm guessing. greedy?

or its done with the purpose of showing a certain level of profitability?

27KEGALLE PLANTATIONS PLC  (KGAL.N0000) - Page 2 Empty Re: KEGALLE PLANTATIONS PLC (KGAL.N0000) Wed Mar 28, 2012 12:17 am

greedy


Manager - Equity Analytics
Manager - Equity Analytics

npp wrote:these two dividends should considerably reflect in RICH's dividend also I'm guessing. greedy?

RICH is a share I have not looked at much in the past & never Invested too .. I guess Smile.

RICH recent Dividend payments ;

Financial Year 2010/2011 Interim 0.20 +Final 0.10) 0.30 per share in total LKR 581mn (1,938mn shares*.30)
Financial Year 2011/2012 (Interim) 0.40 per share in total LKR775mn (1,938mn shares*.40)

I looked at RICH accounts. RICH's cash position is not that promising to pay dividends. The company not the group should have adequate cash to pay dividends. If you look at the latest accounts of RICH for the Q/E 31/12/2011, RICH at the company level has a net short term borrowings of LKR1,721mn.....

Short term borrowings (possibly ODs & other Borrowings) LKR 1,799mn
Cash at bank and in hand LKR 78mn
Net short term Borrowings LKR 1,721mn


Unless they get more dividends form subsidiary companies they wont be able to pay bigger dividends like what they paid in interim (40 cents/share).

The dividend payments coming from KGAL & NAMU can boost company level cash balances a bit;

KGAL LKR7.50 per share*17.5mn shares ======> LKR131mn
NAMU LKR4.50 per share *14.5mn shares =====> LKR66mn

Together LKR197mn dividends to RPC Planation management services limited which in turn may pay dividends to RICH. But these dividends are 10cents per share of RICH (LKR197mn/1,938mn shares of RICH).

My guess is that these dividends will not have big boost to RICH cash position to pay dividends. However, one has to consider dividends from other subsidiaries of RICH as well..


28KEGALLE PLANTATIONS PLC  (KGAL.N0000) - Page 2 Empty Re: KEGALLE PLANTATIONS PLC (KGAL.N0000) Wed Mar 28, 2012 12:42 am

Fresher


Moderator
Moderator

greedy wrote:
npp wrote:these two dividends should considerably reflect in RICH's dividend also I'm guessing. greedy?

RICH is a share I have not looked at much in the past & never Invested too .. I guess Smile.

RICH recent Dividend payments ;

Financial Year 2010/2011 Interim 0.20 +Final 0.10) 0.30 per share in total LKR 581mn (1,938mn shares*.30)
Financial Year 2011/2012 (Interim) 0.40 per share in total LKR775mn (1,938mn shares*.40)

I looked at RICH accounts. RICH's cash position is not that promising to pay dividends. The company not the group should have adequate cash to pay dividends. If you look at the latest accounts of RICH for the Q/E 31/12/2011, RICH at the company level has a net short term borrowings of LKR1,721mn.....

Short term borrowings (possibly ODs & other Borrowings) LKR 1,799mn
Cash at bank and in hand LKR 78mn
Net short term Borrowings LKR 1,721mn


Unless they get more dividends form subsidiary companies they wont be able to pay bigger dividends like what they paid in interim (40 cents/share).

The dividend payments coming from KGAL & NAMU can boost company level cash balances a bit;

KGAL LKR7.50 per share*17.5mn shares ======> LKR131mn
NAMU LKR4.50 per share *14.5mn shares =====> LKR66mn

Together LKR197mn dividends to RPC Planation management services limited which in turn may pay dividends to RICH. But these dividends are 10cents per share of RICH (LKR197mn/1,938mn shares of RICH).

My guess is that these dividends will not have big boost to RICH cash position to pay dividends. However, one has to consider dividends from other subsidiaries of RICH as well..



you may have a point, but,
the recent 0.40/- dividend was anyway paid out of a non-recurrent gain.
but according to few historical reports, RICH has always maintained that amount of borrowings (group & company). Yet it paid the 0.10/- final dividend in May 2011 (0.20/- interim in Nov 2010)
this was when KGAL paid 2.50/- interim and 0.50/- final later on and NAMU paid 1/- interim and 0.70/- final later on.

*my points here are only based on the dividends paid by KGAL and NAMU this year compared to last. I have not taken the time to research any other points at this time.

29KEGALLE PLANTATIONS PLC  (KGAL.N0000) - Page 2 Empty Re: KEGALLE PLANTATIONS PLC (KGAL.N0000) Wed Mar 28, 2012 1:15 am

greedy


Manager - Equity Analytics
Manager - Equity Analytics

npp wrote:
greedy wrote:
npp wrote:these two dividends should considerably reflect in RICH's dividend also I'm guessing. greedy?

RICH is a share I have not looked at much in the past & never Invested too .. I guess Smile.

RICH recent Dividend payments ;

Financial Year 2010/2011 Interim 0.20 +Final 0.10) 0.30 per share in total LKR 581mn (1,938mn shares*.30)
Financial Year 2011/2012 (Interim) 0.40 per share in total LKR775mn (1,938mn shares*.40)

I looked at RICH accounts. RICH's cash position is not that promising to pay dividends. The company not the group should have adequate cash to pay dividends. If you look at the latest accounts of RICH for the Q/E 31/12/2011, RICH at the company level has a net short term borrowings of LKR1,721mn.....

Short term borrowings (possibly ODs & other Borrowings) LKR 1,799mn
Cash at bank and in hand LKR 78mn
Net short term Borrowings LKR 1,721mn


Unless they get more dividends form subsidiary companies they wont be able to pay bigger dividends like what they paid in interim (40 cents/share).

The dividend payments coming from KGAL & NAMU can boost company level cash balances a bit;

KGAL LKR7.50 per share*17.5mn shares ======> LKR131mn
NAMU LKR4.50 per share *14.5mn shares =====> LKR66mn

Together LKR197mn dividends to RPC Planation management services limited which in turn may pay dividends to RICH. But these dividends are 10cents per share of RICH (LKR197mn/1,938mn shares of RICH).

My guess is that these dividends will not have big boost to RICH cash position to pay dividends. However, one has to consider dividends from other subsidiaries of RICH as well..



you may have a point, but,
the recent 0.40/- dividend was anyway paid out of a non-recurrent gain.
but according to few historical reports, RICH has always maintained that amount of borrowings (group & company). Yet it paid the 0.10/- final dividend in May 2011 (0.20/- interim in Nov 2010)
this was when KGAL paid 2.50/- interim and 0.50/- final later on and NAMU paid 1/- interim and 0.70/- final later on.

*my points here are only based on the dividends paid by KGAL and NAMU this year compared to last. I have not taken the time to research any other points at this time.

You too have a point I guess Smile. But what is the motive to sell Asian Alliance Insurance? I guess RICH was under pressure because of less dividend payments in the past. The motive for sale could be a payment of dividend.. (I'm not 100% sure)

See the dividend history

FY2011/2012========> 0.40
FY2010/2011========> 0.30
FY2009/2010========> 1.00 (before Subdivision of shares 1:15)
FY2008/2009========> Nil
FY2007/2008========> Nil

I guess a final dividend of 10 to 20 cents maximum Smile.

30KEGALLE PLANTATIONS PLC  (KGAL.N0000) - Page 2 Empty Re: KEGALLE PLANTATIONS PLC (KGAL.N0000) Wed Mar 28, 2012 1:39 am

Slstock


Director - Equity Analytics
Director - Equity Analytics

greedy wrote:


But what is the motive to sell Asian Alliance Insurance?


RICH has started their own insurance business. So they may have found no need to keep another as they can dispose AAIC with capital gain.

31KEGALLE PLANTATIONS PLC  (KGAL.N0000) - Page 2 Empty Re: KEGALLE PLANTATIONS PLC (KGAL.N0000) Wed Mar 28, 2012 1:51 am

greedy

greedy
Manager - Equity Analytics
Manager - Equity Analytics

slstock wrote:
greedy wrote:


But what is the motive to sell Asian Alliance Insurance?


RICH has started their own insurance business. So they may have found no need to keep another as they can dispose AAIC with capital gain.

Ok You are right.

They sold Asian Alliance in Sept 2011 & started new Insurance company in January 2012. I mean the sale happened first. RICH could have bought the entire AAIC because Asia Capital too exited from AAIC. May be RICH found the offer price attractive.

32KEGALLE PLANTATIONS PLC  (KGAL.N0000) - Page 2 Empty Re: KEGALLE PLANTATIONS PLC (KGAL.N0000) Wed Mar 28, 2012 5:38 am

rishanpossitive


Manager - Equity Analytics
Manager - Equity Analytics

Is today the final day for KGAL action???.XD tomorrow. Shocked

33KEGALLE PLANTATIONS PLC  (KGAL.N0000) - Page 2 Empty Re: KEGALLE PLANTATIONS PLC (KGAL.N0000) Fri Mar 30, 2012 8:17 pm

Gaja


Associate Director - Equity Analytics
Associate Director - Equity Analytics

greedy wrote:
npp wrote:these two dividends should considerably reflect in RICH's dividend also I'm guessing. greedy?

RICH is a share I have not looked at much in the past & never Invested too .. I guess Smile.

RICH recent Dividend payments ;

Financial Year 2010/2011 Interim 0.20 +Final 0.10) 0.30 per share in total LKR 581mn (1,938mn shares*.30)
Financial Year 2011/2012 (Interim) 0.40 per share in total LKR775mn (1,938mn shares*.40)

I looked at RICH accounts. RICH's cash position is not that promising to pay dividends. The company not the group should have adequate cash to pay dividends. If you look at the latest accounts of RICH for the Q/E 31/12/2011, RICH at the company level has a net short term borrowings of LKR1,721mn.....

Short term borrowings (possibly ODs & other Borrowings) LKR 1,799mn
Cash at bank and in hand LKR 78mn
Net short term Borrowings LKR 1,721mn


Unless they get more dividends form subsidiary companies they wont be able to pay bigger dividends like what they paid in interim (40 cents/share).

The dividend payments coming from KGAL & NAMU can boost company level cash balances a bit;

KGAL LKR7.50 per share*17.5mn shares ======> LKR131mn
NAMU LKR4.50 per share *14.5mn shares =====> LKR66mn

Together LKR197mn dividends to RPC Planation management services limited which in turn may pay dividends to RICH. But these dividends are 10cents per share of RICH (LKR197mn/1,938mn shares of RICH).

My guess is that these dividends will not have big boost to RICH cash position to pay dividends. However, one has to consider dividends from other subsidiaries of RICH as well..



It seems they got some money from any other source to pay the 2nd interim dividend

34KEGALLE PLANTATIONS PLC  (KGAL.N0000) - Page 2 Empty Re: KEGALLE PLANTATIONS PLC (KGAL.N0000) Fri Mar 30, 2012 8:23 pm

Redbulls

Redbulls
Director - Equity Analytics
Director - Equity Analytics

Gaja wrote:
greedy wrote:
npp wrote:these two dividends should considerably reflect in RICH's dividend also I'm guessing. greedy?

RICH is a share I have not looked at much in the past & never Invested too .. I guess Smile.

RICH recent Dividend payments ;

Financial Year 2010/2011 Interim 0.20 +Final 0.10) 0.30 per share in total LKR 581mn (1,938mn shares*.30)
Financial Year 2011/2012 (Interim) 0.40 per share in total LKR775mn (1,938mn shares*.40)

I looked at RICH accounts. RICH's cash position is not that promising to pay dividends. The company not the group should have adequate cash to pay dividends. If you look at the latest accounts of RICH for the Q/E 31/12/2011, RICH at the company level has a net short term borrowings of LKR1,721mn.....

Short term borrowings (possibly ODs & other Borrowings) LKR 1,799mn
Cash at bank and in hand LKR 78mn
Net short term Borrowings LKR 1,721mn


Unless they get more dividends form subsidiary companies they wont be able to pay bigger dividends like what they paid in interim (40 cents/share).

The dividend payments coming from KGAL & NAMU can boost company level cash balances a bit;

KGAL LKR7.50 per share*17.5mn shares ======> LKR131mn
NAMU LKR4.50 per share *14.5mn shares =====> LKR66mn

Together LKR197mn dividends to RPC Planation management services limited which in turn may pay dividends to RICH. But these dividends are 10cents per share of RICH (LKR197mn/1,938mn shares of RICH).

My guess is that these dividends will not have big boost to RICH cash position to pay dividends. However, one has to consider dividends from other subsidiaries of RICH as well..



It seems they got some money from any other source to pay the 2nd interim dividend

KEGALLE PLANTATIONS PLC  (KGAL.N0000) - Page 2 Rich10

http://investing.businessweek.com/research/stocks/financials/financials.asp?ticker=RICH:SL&dataset=cashFlow&period=Q¤cy=native

35KEGALLE PLANTATIONS PLC  (KGAL.N0000) - Page 2 Empty Re: KEGALLE PLANTATIONS PLC (KGAL.N0000) Sat Mar 31, 2012 2:33 am

greedy

greedy
Manager - Equity Analytics
Manager - Equity Analytics

Gaja wrote:
greedy wrote:
npp wrote:these two dividends should considerably reflect in RICH's dividend also I'm guessing. greedy?

RICH is a share I have not looked at much in the past & never Invested too .. I guess Smile.

RICH recent Dividend payments ;

Financial Year 2010/2011 Interim 0.20 +Final 0.10) 0.30 per share in total LKR 581mn (1,938mn shares*.30)
Financial Year 2011/2012 (Interim) 0.40 per share in total LKR775mn (1,938mn shares*.40)

I looked at RICH accounts. RICH's cash position is not that promising to pay dividends. The company not the group should have adequate cash to pay dividends. If you look at the latest accounts of RICH for the Q/E 31/12/2011, RICH at the company level has a net short term borrowings of LKR1,721mn.....

Short term borrowings (possibly ODs & other Borrowings) LKR 1,799mn
Cash at bank and in hand LKR 78mn
Net short term Borrowings LKR 1,721mn


Unless they get more dividends form subsidiary companies they wont be able to pay bigger dividends like what they paid in interim (40 cents/share).

The dividend payments coming from KGAL & NAMU can boost company level cash balances a bit;

KGAL LKR7.50 per share*17.5mn shares ======> LKR131mn
NAMU LKR4.50 per share *14.5mn shares =====> LKR66mn

Together LKR197mn dividends to RPC Planation management services limited which in turn may pay dividends to RICH. But these dividends are 10cents per share of RICH (LKR197mn/1,938mn shares of RICH).

My guess is that these dividends will not have big boost to RICH cash position to pay dividends. However, one has to consider dividends from other subsidiaries of RICH as well..



It seems they got some money from any other source to pay the 2nd interim dividend

Yeah, RICH may be receiving dividends from other subsidiaries & also it has a inter-company receivable. Therefore, shouldn't be a problem to pay LKR594mn as dividends (1,938mn shares *.30 = LKR594mn).

36KEGALLE PLANTATIONS PLC  (KGAL.N0000) - Page 2 Empty Re: KEGALLE PLANTATIONS PLC (KGAL.N0000) Sat Mar 31, 2012 2:41 am

greedy

greedy
Manager - Equity Analytics
Manager - Equity Analytics

greedy wrote:
npp wrote:
greedy wrote:
npp wrote:these two dividends should considerably reflect in RICH's dividend also I'm guessing. greedy?

RICH is a share I have not looked at much in the past & never Invested too .. I guess Smile.

RICH recent Dividend payments ;

Financial Year 2010/2011 Interim 0.20 +Final 0.10) 0.30 per share in total LKR 581mn (1,938mn shares*.30)
Financial Year 2011/2012 (Interim) 0.40 per share in total LKR775mn (1,938mn shares*.40)

I looked at RICH accounts. RICH's cash position is not that promising to pay dividends. The company not the group should have adequate cash to pay dividends. If you look at the latest accounts of RICH for the Q/E 31/12/2011, RICH at the company level has a net short term borrowings of LKR1,721mn.....

Short term borrowings (possibly ODs & other Borrowings) LKR 1,799mn
Cash at bank and in hand LKR 78mn
Net short term Borrowings LKR 1,721mn


Unless they get more dividends form subsidiary companies they wont be able to pay bigger dividends like what they paid in interim (40 cents/share).

The dividend payments coming from KGAL & NAMU can boost company level cash balances a bit;

KGAL LKR7.50 per share*17.5mn shares ======> LKR131mn
NAMU LKR4.50 per share *14.5mn shares =====> LKR66mn

Together LKR197mn dividends to RPC Planation management services limited which in turn may pay dividends to RICH. But these dividends are 10cents per share of RICH (LKR197mn/1,938mn shares of RICH).

My guess is that these dividends will not have big boost to RICH cash position to pay dividends. However, one has to consider dividends from other subsidiaries of RICH as well..



you may have a point, but,
the recent 0.40/- dividend was anyway paid out of a non-recurrent gain.
but according to few historical reports, RICH has always maintained that amount of borrowings (group & company). Yet it paid the 0.10/- final dividend in May 2011 (0.20/- interim in Nov 2010)
this was when KGAL paid 2.50/- interim and 0.50/- final later on and NAMU paid 1/- interim and 0.70/- final later on.

*my points here are only based on the dividends paid by KGAL and NAMU this year compared to last. I have not taken the time to research any other points at this time.

You too have a point I guess Smile. But what is the motive to sell Asian Alliance Insurance? I guess RICH was under pressure because of less dividend payments in the past. The motive for sale could be a payment of dividend.. (I'm not 100% sure)

See the dividend history

FY2011/2012========> 0.40
FY2010/2011========> 0.30
FY2009/2010========> 1.00 (before Subdivision of shares 1:15)
FY2008/2009========> Nil
FY2007/2008========> Nil

I guess a final dividend of 10 to 20 cents maximum Smile.

I was wrong here RICH has declared a 30 cents dividend compared 20 cents max I mentioned here.

It is interesting to note that RICH accumulated profit as of 31/12/2011 is LKR571mn added with two dividends from KGAL & NAMU of LKR197mn comes to a total distributable profits of LKR768mn at RICH company level.

Out of which 77% distributed as dividends now! Aggressive dividend policy.

37KEGALLE PLANTATIONS PLC  (KGAL.N0000) - Page 2 Empty Re: KEGALLE PLANTATIONS PLC (KGAL.N0000) Sat Mar 31, 2012 6:28 am

Gaja


Associate Director - Equity Analytics
Associate Director - Equity Analytics

greedy wrote:
greedy wrote:
npp wrote:
greedy wrote:
npp wrote:these two dividends should considerably reflect in RICH's dividend also I'm guessing. greedy?

RICH is a share I have not looked at much in the past & never Invested too .. I guess Smile.

RICH recent Dividend payments ;

Financial Year 2010/2011 Interim 0.20 +Final 0.10) 0.30 per share in total LKR 581mn (1,938mn shares*.30)
Financial Year 2011/2012 (Interim) 0.40 per share in total LKR775mn (1,938mn shares*.40)

I looked at RICH accounts. RICH's cash position is not that promising to pay dividends. The company not the group should have adequate cash to pay dividends. If you look at the latest accounts of RICH for the Q/E 31/12/2011, RICH at the company level has a net short term borrowings of LKR1,721mn.....

Short term borrowings (possibly ODs & other Borrowings) LKR 1,799mn
Cash at bank and in hand LKR 78mn
Net short term Borrowings LKR 1,721mn


Unless they get more dividends form subsidiary companies they wont be able to pay bigger dividends like what they paid in interim (40 cents/share).

The dividend payments coming from KGAL & NAMU can boost company level cash balances a bit;

KGAL LKR7.50 per share*17.5mn shares ======> LKR131mn
NAMU LKR4.50 per share *14.5mn shares =====> LKR66mn

Together LKR197mn dividends to RPC Planation management services limited which in turn may pay dividends to RICH. But these dividends are 10cents per share of RICH (LKR197mn/1,938mn shares of RICH).

My guess is that these dividends will not have big boost to RICH cash position to pay dividends. However, one has to consider dividends from other subsidiaries of RICH as well..



you may have a point, but,
the recent 0.40/- dividend was anyway paid out of a non-recurrent gain.
but according to few historical reports, RICH has always maintained that amount of borrowings (group & company). Yet it paid the 0.10/- final dividend in May 2011 (0.20/- interim in Nov 2010)
this was when KGAL paid 2.50/- interim and 0.50/- final later on and NAMU paid 1/- interim and 0.70/- final later on.

*my points here are only based on the dividends paid by KGAL and NAMU this year compared to last. I have not taken the time to research any other points at this time.

You too have a point I guess Smile. But what is the motive to sell Asian Alliance Insurance? I guess RICH was under pressure because of less dividend payments in the past. The motive for sale could be a payment of dividend.. (I'm not 100% sure)

See the dividend history

FY2011/2012========> 0.40
FY2010/2011========> 0.30
FY2009/2010========> 1.00 (before Subdivision of shares 1:15)
FY2008/2009========> Nil
FY2007/2008========> Nil

I guess a final dividend of 10 to 20 cents maximum Smile.

I was wrong here RICH has declared a 30 cents dividend compared 20 cents max I mentioned here.

It is interesting to note that RICH accumulated profit as of 31/12/2011 is LKR571mn added with two dividends from KGAL & NAMU of LKR197mn comes to a total distributable profits of LKR768mn at RICH company level.

Out of which 77% distributed as dividends now! Aggressive dividend policy.


WILL they declare a final one as well?

38KEGALLE PLANTATIONS PLC  (KGAL.N0000) - Page 2 Empty Re: KEGALLE PLANTATIONS PLC (KGAL.N0000) Sat Mar 31, 2012 7:19 am

Slstock

Slstock
Director - Equity Analytics
Director - Equity Analytics

Gaja wrote:

WILL they declare a final one as well?


Let look at March quarter results then we can maybe predict. But hobestly I think they have done enough for the investors already with Rs 0.7 dividends. They should keep some money to expand and reinvest.

39KEGALLE PLANTATIONS PLC  (KGAL.N0000) - Page 2 Empty Re: KEGALLE PLANTATIONS PLC (KGAL.N0000) Sat Mar 31, 2012 7:52 am

Gaja


Associate Director - Equity Analytics
Associate Director - Equity Analytics

slstock wrote:
Gaja wrote:

WILL they declare a final one as well?


Let look at March quarter results then we can maybe predict. But hobestly I think they have done enough for the investors already with Rs 0.7 dividends. They should keep some money to expand and reinvest.

I agree with u, this time there yield is very good, while they on the expansion of the retail chain, on the insurance business, also having some issues with the tea sector also i think they can't use the sales proceeds they received from the credit cards because of the loan, but why i asked that question is there have to be some reason to declare the 2nd interim dividend yesterday, they could have easily announced this as final dividend on Monday!

This time their payout is higher than expected might be due the one off gain they got, so have to wait and see how thinks going in the future.

40KEGALLE PLANTATIONS PLC  (KGAL.N0000) - Page 2 Empty Re: KEGALLE PLANTATIONS PLC (KGAL.N0000) Sat Mar 31, 2012 12:50 pm

greedy

greedy
Manager - Equity Analytics
Manager - Equity Analytics

Gaja wrote:
slstock wrote:
Gaja wrote:

WILL they declare a final one as well?


Let look at March quarter results then we can maybe predict. But hobestly I think they have done enough for the investors already with Rs 0.7 dividends. They should keep some money to expand and reinvest.

I agree with u, this time there yield is very good, while they on the expansion of the retail chain, on the insurance business, also having some issues with the tea sector also i think they can't use the sales proceeds they received from the credit cards because of the loan, but why i asked that question is there have to be some reason to declare the 2nd interim dividend yesterday, they could have easily announced this as final dividend on Monday!

This time their payout is higher than expected might be due the one off gain they got, so have to wait and see how thinks going in the future.

If that is announced on coming Monday, 2 April 2012 then it cannot be booked in the accounts for the year ending 31 March 2012. That could be the reason why they announced second interim dividend before the year end.

41KEGALLE PLANTATIONS PLC  (KGAL.N0000) - Page 2 Empty Re: KEGALLE PLANTATIONS PLC (KGAL.N0000) Sat Mar 31, 2012 7:59 pm

Gaja


Associate Director - Equity Analytics
Associate Director - Equity Analytics

greedy wrote:
Gaja wrote:
slstock wrote:
Gaja wrote:

WILL they declare a final one as well?


Let look at March quarter results then we can maybe predict. But hobestly I think they have done enough for the investors already with Rs 0.7 dividends. They should keep some money to expand and reinvest.

I agree with u, this time there yield is very good, while they on the expansion of the retail chain, on the insurance business, also having some issues with the tea sector also i think they can't use the sales proceeds they received from the credit cards because of the loan, but why i asked that question is there have to be some reason to declare the 2nd interim dividend yesterday, they could have easily announced this as final dividend on Monday!

This time their payout is higher than expected might be due the one off gain they got, so have to wait and see how thinks going in the future.

If that is announced on coming Monday, 2 April 2012 then it cannot be booked in the accounts for the year ending 31 March 2012. That could be the reason why they announced second interim dividend before the year end.

Thanks for the information, i feel this also they can they that they declared as interim dividends and i hope it will not brought to the accounts

42KEGALLE PLANTATIONS PLC  (KGAL.N0000) - Page 2 Empty Kegalle cash per share Rs. 72.00 Tue Apr 09, 2013 5:56 pm

salt

salt
Vice President - Equity Analytics
Vice President - Equity Analytics

Kegalle dividend should be very high this time
The way RPMC is buying it gives an indication
Its cash rich, short term investments LKR 2,900 millions & Long term investments LKR 557 million. Long term investments in group companies.

Short term investments in treasuries & repos.
If this is correct, cash per share is LKR 72.00.
They might give special dividend ( handsome) once they complete the acquisition.

Even this year EPS is not bad, LKR 18.00 per share

http://www.cse.lk/cmt/upload_report_file/711_1339063116434.pdf

http://www.cse.lk/cmt/upload_report_file/711_1360318417078.pdf








Last edited by salt on Tue Apr 09, 2013 6:29 pm; edited 1 time in total

43KEGALLE PLANTATIONS PLC  (KGAL.N0000) - Page 2 Empty Re: KEGALLE PLANTATIONS PLC (KGAL.N0000) Tue Apr 09, 2013 6:16 pm

Slstock

Slstock
Director - Equity Analytics
Director - Equity Analytics

Or will they save to pay for the Wage increase gratuity?

Anyway this is the king in the sector. Has some hidden assets as well.

44KEGALLE PLANTATIONS PLC  (KGAL.N0000) - Page 2 Empty Re: KEGALLE PLANTATIONS PLC (KGAL.N0000) Tue Apr 09, 2013 6:35 pm

salt

salt
Vice President - Equity Analytics
Vice President - Equity Analytics

slstock wrote:Or will they save to pay for the Wage increase gratuity?

Anyway this is the king in the sector. Has some hidden assets as well.

You mean to say retirement benefit obligation will increase from current 400 million to Rs. 2.2 billion? Is it sensible?

Slstock, you are a senior member... Make your own calculation and present us figures
This wage bill also a nonsense headline like BFL' s so called BOI. Farm in Puttalam.

45KEGALLE PLANTATIONS PLC  (KGAL.N0000) - Page 2 Empty Re: KEGALLE PLANTATIONS PLC (KGAL.N0000) Tue Apr 09, 2013 6:57 pm

Slstock

Slstock
Director - Equity Analytics
Director - Equity Analytics

All I am saying is that there is a possiblity for KGAL to not go for a massive dividend as there is extra expenses due to wage issue. They might they might not.

Who said anything about gratuity is going to be 2.2 billion.

Look at 2011 June quarter report how they handled the wage issue.

KGAL is cash rich, Yes. If you search forum I have commented on KGAL cash rich position several times.
I already said to me this is the king of the sector.


We can't say they will definetly pay a huge dividend because they are cash rich and have investments. RENU is in almost the same boat but they are stingy.

Also if you look at KGAL dividend history they have not been consistent. Last time yes they paid rs 7.5 . But time before that? Maybe this time they will keep the new high dividend trend going.

On consistency matter, I see 1 other rival plantation company giving consistent % wise high dividends over the years.

RPC collecting can be for dividend or maybe they have other plans due to Kgal hidden asset ;-)

This is only giving a different view. They may pay a high dividend.


You don;t have get upset like this becaucse I gave a different thought. I will be happy if they give a massive dividend.
I already hold some other plantation sector shares. And any sector run will benefit me.






salt wrote:
slstock wrote:Or will they save to pay for the Wage increase gratuity?

Anyway this is the king in the sector. Has some hidden assets as well.

You mean to say retirement benefit obligation will increase from current 400 million to Rs. 2.2 billion? Is it sensible?

Slstock, you are a senior member... Make your own calculation and present us figures
This wage bill also a nonsense headline like BFL' s so called BOI. Farm in Puttalam.

46KEGALLE PLANTATIONS PLC  (KGAL.N0000) - Page 2 Empty Re: KEGALLE PLANTATIONS PLC (KGAL.N0000) Tue Apr 09, 2013 7:04 pm

Jake Sully

Jake Sully
Manager - Equity Analytics
Manager - Equity Analytics

Lunu's initial argument is valid. I.e. when a related party keeps on buying means, most most most of the time dividends going to be lovely. BUT they don't have a consistent dividend record.

47KEGALLE PLANTATIONS PLC  (KGAL.N0000) - Page 2 Empty Re: KEGALLE PLANTATIONS PLC (KGAL.N0000) Tue Apr 09, 2013 7:06 pm

Jake Sully

Jake Sully
Manager - Equity Analytics
Manager - Equity Analytics

Of course they will pay dividend but will it be same as last year?

48KEGALLE PLANTATIONS PLC  (KGAL.N0000) - Page 2 Empty Re: KEGALLE PLANTATIONS PLC (KGAL.N0000) Tue Apr 09, 2013 7:08 pm

Slstock

Slstock
Director - Equity Analytics
Director - Equity Analytics

Also note RPC has been buying KGAL from time to time. I remember in 2011 august to septemebr they bought KGAL at Rs 140+

Also when the share price was around Rs 80 in early 2012.




Jake Sully wrote:Lunu's initial argument is valid. I.e. when a related party keeps on buying means, most most most of the time dividends going to be lovely. BUT they don't have a consistent dividend record.

49KEGALLE PLANTATIONS PLC  (KGAL.N0000) - Page 2 Empty Re: KEGALLE PLANTATIONS PLC (KGAL.N0000) Tue Apr 09, 2013 7:10 pm

Jake Sully

Jake Sully
Manager - Equity Analytics
Manager - Equity Analytics

Same situ for LHL. Hope they will pay more than last year as the RP is buying continuously.

50KEGALLE PLANTATIONS PLC  (KGAL.N0000) - Page 2 Empty Re: KEGALLE PLANTATIONS PLC (KGAL.N0000) Tue Apr 09, 2013 7:27 pm

Gaja


Associate Director - Equity Analytics
Associate Director - Equity Analytics

Am not certain about the dividend, but one thing i noted in the last few days they wanted to achieve more than 75%, now they did it! but what is the intention behind it?

51KEGALLE PLANTATIONS PLC  (KGAL.N0000) - Page 2 Empty Re: KEGALLE PLANTATIONS PLC (KGAL.N0000) Tue Apr 09, 2013 7:28 pm

Slstock

Slstock
Director - Equity Analytics
Director - Equity Analytics


Gaja,

I already hinted one possible reason ;-)


Gaja wrote:Am not certain about the dividend, but one thing i noted in the last few days they wanted to achieve more than 75%, now they did it! but what is the intention behind it?

52KEGALLE PLANTATIONS PLC  (KGAL.N0000) - Page 2 Empty Re: KEGALLE PLANTATIONS PLC (KGAL.N0000) Tue Apr 09, 2013 7:33 pm

Gaja


Associate Director - Equity Analytics
Associate Director - Equity Analytics

slstock wrote:
Gaja,

I already hinted one possible reason ;-)


Gaja wrote:Am not certain about the dividend, but one thing i noted in the last few days they wanted to achieve more than 75%, now they did it! but what is the intention behind it?

Are u referring this

Hmm, sadly I sold my KGAL for a need but KGAL is real value share in the sector. Hmm is RPC looking at a hidden asset in KGAL ;-) ?

53KEGALLE PLANTATIONS PLC  (KGAL.N0000) - Page 2 Empty Re: KEGALLE PLANTATIONS PLC (KGAL.N0000) Tue Apr 09, 2013 7:37 pm

Slstock

Slstock
Director - Equity Analytics
Director - Equity Analytics

Well I mentioned the same in this post also about the hidden asset . Actually it is not that hidden if one looks.

I did not want to say it outright and give all info . No fun right. Leave people interested do some work themselves right Smile



Gaja wrote:
slstock wrote:
Gaja,

I already hinted one possible reason ;-)


Gaja wrote:Am not certain about the dividend, but one thing i noted in the last few days they wanted to achieve more than 75%, now they did it! but what is the intention behind it?

Are u referring this

Hmm, sadly I sold my KGAL for a need but KGAL is real value share in the sector. Hmm is RPC looking at a hidden asset in KGAL ;-) ?

54KEGALLE PLANTATIONS PLC  (KGAL.N0000) - Page 2 Empty Re: KEGALLE PLANTATIONS PLC (KGAL.N0000) Tue Apr 09, 2013 8:20 pm

salt

salt
Vice President - Equity Analytics
Vice President - Equity Analytics

@slstock,
Such a long explanation. To be frank, this whole argument about wage is fallacy
It's nothing extraordinary, this plantation industry is one of the oldest industry & wage has been going up throughout the history. We knew about this since our childhood. Industry is however coping with it.

I agree with you on rest of the thing..

55KEGALLE PLANTATIONS PLC  (KGAL.N0000) - Page 2 Empty Re: KEGALLE PLANTATIONS PLC (KGAL.N0000) Tue Apr 09, 2013 9:39 pm

Chinwi

Chinwi
Associate Director - Equity Analytics
Associate Director - Equity Analytics

salt wrote:@slstock,
Such a long explanation. To be frank, this whole argument about wage is fallacy
It's nothing extraordinary, this plantation industry is one of the oldest industry & wage has been going up throughout the history. We knew about this since our childhood. Industry is however coping with it.

I agree with you on rest of the thing..

In this case I agree with salt 100%.

Few weeks ago, I did some rough study on paper for some plantation companies to see whether there is a mammoth impact in their outcome due to this wage issue.

I took 6-7 year quarterly data for consideration and management costs, other costs , revenue etc. were tabled separately to study.

Surprisingly the impact by the so called wage devil was negligible for some companies. There were some other reasons for up and down in time to time in their bottom-line.

I cannot give exact details or names of the stocks. I did it in very lazy manner to verify my thinking. Because I had the suspicion about this so called wage devil for many months.

This misconception generalized to the entire industry could be a reason for the delaying of plantation rally.

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