HAYLEYS FABRIC PLC (MGT.N0000)

Hayleys Fabric PLC is the pioneer in textiles manufacturing in Sri Lanka, providing end-to-end textiles solutions from design to manufacturing of fabric made out of natural and synthetic fibers. Hayleys Fabrics was formerly known as Hayleys MGT Knitting Mills PLC.

…Although the results, at a glance, do not reflect a good year, mainly due to market conditions and other external cost increases, the Company has made extensive progress to regain profitability and unit cost reductions which was seen in the 4th quarter of 2017/18..(CEO Statement-Annual Report 2017/18)

Further the  CEO goes on elaborating ..”The strategies adopted by the Company for long term sustainability in having a broad based geographical market such as USA, UK & Europe, be selective with its customer base and to lead in innovation continued during the year under review…”

Somewhere in the report CEO states that all these efforts starts to materialise in the 4^th Quarter 2017/18, where things started to turn to profit from there onwards.

The Revenue in USD is clearly increasing Q2Q and Same quarters previous year  at a progressive rate. The Annual Report says that the Capacity Utilisation is 78% for 2017/18 same as last year. Therefore this is clearly through the materialisation of Forecast of high end market orders as stated by CEO .
 


 
Though the Annual Report discusses about cost reduction I didn’t see the GP margin increasing but decreasing. This is due to the sharp increases in Yarn Prices and USD appreciation.

But the most Notable area is it started to Turnaround from Losses to Profit, and profits now started to increase at a considerable rate Q2Q. The reduction in Finance cost Q2Q is a clear sign that the Company cashflow is improving, and soon MGT will bring this to the lowest possible level. Cash Balances getting steady and increasing Q2Q. Soon the Debts should started coming down too
 
Cash balance increased from 227Mn in Dec 2017 to 1.2Bn in December 2018.




lets look at the Shareholding structure for last 3 Quarters. And you will know whos selling and why the price went low . Soon someone will grab the opportunity



 
Therefore on a simple calculation if MGT could sustain the current profit they can report an EPS this year Rs. 1.50.  then a guaranteed 2.0 ( 0.50 x 4).  We can clearly see there is potential to further growth in Revenue , and profits through improved margin because the CEO talks about the learning Curve period, and I believe there will be Finance Cost reduction due to better cashflows and WCAP management. If we play around with these numbers I am sure MGT can touch an EPS =3.0
 
 
Its gonna be a high flyer in coming days. Good Luck
 
HE

Hawk Eye wrote:…Although the results, at a glance, do not reflect a good year, mainly due to market conditions and other external cost increases, the Company has made extensive progress to regain profitability and unit cost reductions which was seen in the 4th quarter of 2017/18..(CEO Statement-Annual Report 2017/18)

Further the  CEO goes on elaborating ..”The strategies adopted by the Company for long term sustainability in having a broad based geographical market such as USA, UK & Europe, be selective with its customer base and to lead in innovation continued during the year under review…”

Somewhere in the report CEO states that all these efforts starts to materialise in the 4^th Quarter 2017/18, where things started to turn to profit from there onwards.

The Revenue in USD is clearly increasing Q2Q and Same quarters previous year  at a progressive rate. The Annual Report says that the Capacity Utilisation is 78% for 2017/18 same as last year. Therefore this is clearly through the materialisation of Forecast of high end market orders as stated by CEO .
 


 
Though the Annual Report discusses about cost reduction I didn’t see the GP margin increasing but decreasing. This is due to the sharp increases in Yarn Prices and USD appreciation.

But the most Notable area is it started to Turnaround from Losses to Profit, and profits now started to increase at a considerable rate Q2Q. The reduction in Finance cost Q2Q is a clear sign that the Company cashflow is improving, and soon MGT will bring this to the lowest possible level. Cash Balances getting steady and increasing Q2Q. Soon the Debts should started coming down too
 
Cash balance increased from 227Mn in Dec 2017 to 1.2Bn in December 2018.




lets look at the Shareholding structure for last 3 Quarters. And you will know whos selling and why the price went low . Soon someone will grab the opportunity



 
Therefore on a simple calculation if MGT could sustain the current profit they can report an EPS this year Rs. 1.50.  then a guaranteed 2.0 ( 0.50 x 4).  We can clearly see there is potential to further growth in Revenue , and profits through improved margin because the CEO talks about the learning Curve period, and I believe there will be Finance Cost reduction due to better cashflows and WCAP management. If we play around with these numbers I am sure MGT can touch an EPS =3.0
 
 
Its gonna be a high flyer in coming days. Good Luck
 
HE

Thanks HE

MY FAVORITE TOO............Directors collected 12/= 16/= levels. GL

Hawk Eye wrote:…Although the results, at a glance, do not reflect a good year, mainly due to market conditions and other external cost increases, the Company has made extensive progress to regain profitability and unit cost reductions which was seen in the 4th quarter of 2017/18..(CEO Statement-Annual Report 2017/18)

Further the  CEO goes on elaborating ..”The strategies adopted by the Company for long term sustainability in having a broad based geographical market such as USA, UK & Europe, be selective with its customer base and to lead in innovation continued during the year under review…”

Somewhere in the report CEO states that all these efforts starts to materialise in the 4^th Quarter 2017/18, where things started to turn to profit from there onwards.

The Revenue in USD is clearly increasing Q2Q and Same quarters previous year  at a progressive rate. The Annual Report says that the Capacity Utilisation is 78% for 2017/18 same as last year. Therefore this is clearly through the materialisation of Forecast of high end market orders as stated by CEO .
 


 
Though the Annual Report discusses about cost reduction I didn’t see the GP margin increasing but decreasing. This is due to the sharp increases in Yarn Prices and USD appreciation.

But the most Notable area is it started to Turnaround from Losses to Profit, and profits now started to increase at a considerable rate Q2Q. The reduction in Finance cost Q2Q is a clear sign that the Company cashflow is improving, and soon MGT will bring this to the lowest possible level. Cash Balances getting steady and increasing Q2Q. Soon the Debts should started coming down too
 
Cash balance increased from 227Mn in Dec 2017 to 1.2Bn in December 2018.




lets look at the Shareholding structure for last 3 Quarters. And you will know whos selling and why the price went low . Soon someone will grab the opportunity



 
Therefore on a simple calculation if MGT could sustain the current profit they can report an EPS this year Rs. 1.50.  then a guaranteed 2.0 ( 0.50 x 4).  We can clearly see there is potential to further growth in Revenue , and profits through improved margin because the CEO talks about the learning Curve period, and I believe there will be Finance Cost reduction due to better cashflows and WCAP management. If we play around with these numbers I am sure MGT can touch an EPS =3.0
 
 
Its gonna be a high flyer in coming days. Good Luck
 
HE

Union assurance purchase price 16.5.They must have sold in loss those 7million shares.

Any target price? i think this is trading at its 52 weeks lowest level?

MGT.N0000 will pass 13 rs. level very soon. good collection going these days.

This is another counter to be watched.Price increase 8.6 to 9(4%) but in small quantities.

EPS    1.26

NAV   16.1

P/B    0.57

PE      7.2

It is running in profit for last 3 quarters.MGT reduced waste and raw material cotton prices also low.Let's see next quarter result...

MGT will pass 13 rs. level very soon

yes , my PV outer bubble points to set 14.80 for MGT. if you have extra funds this is real value for money. i got some insider info that the business is going on really well . MGT buyers & holders are real winners.

Uaecoindubai wrote:yes , my PV outer bubble points to set 14.80 for MGT. if you have extra funds this is real value for money. i got some insider info that the business is going on really well . MGT buyers & holders are real winners.

Looks good news.

Uaecoindubai wrote:yes , my PV outer bubble points to set 14.80 for MGT. if you have extra funds this is real value for money. i got some insider info that the business is going on really well . MGT buyers & holders are real winners.

Thanks dear

Teller=uaecoindubai,
My reply about management when it was trading around 9/=, good stocks no need promotion again and again. Value will come up one day. Teller always against low qualiy stocks. Some members angry with me. Truth is bitter always. Always try to buy quality stocks and hold. Because we are investors not gamblers

13 + plus reached. A good entry level suggestion by chanaka. Tellers set 14.80 LKR, at the time of calculation ,, i was wondering how it can reach 9 to 14, i compare the result ,not only one time but sevaral times. Every time 14+. Hahahaaa...its amaxing ..it reached 13 plus..what a gain ...

Will touch 15 for sure sooner than later

TELLERS target was 14.80 LKR, he recommended 8.50 Levels. Above 14.80 no guarantee from my side. GL

Heavily overheated and had appreciated more than 50% over the last one month. The guys who bought are now dumping be careful as its overvalued at present!

Teller has re calculated MGT price , based on weighted volumues average VS acceleration known as VAROOM, MGT definitely touch 18.40 LKR for a share. Kindly note 14.80 target revised to 18.40 LKR, as per latest trading statistics.GL

Teller wrote:Teller has re calculated MGT price , based on weighted volumues average VS acceleration known as VAROOM, MGT definitely touch 18.40 LKR for a share.  Kindly note 14.80 target revised to 18.40 LKR, as per latest trading statistics.GL

Even down market MGT shows strong support against resistence. Depreciation of rupee will be favourable for them.

Definitely 18.40 can confirm now, based on accelerated upward curve.
teller recommended 9.0 to 14.80 -status achieved
Next 14.80 to 18.50 -status 50% achieved

Teller, ela kiri

Good quarter report ahead... it will move with TJL...most of export companies done well in Q2...hurry up and get in to Train... it will pass 18 soon...

Teller carefully calculated 18.40 under hid first revised target.
If it achieves Management will give 100% returns those who entered my recommended level 9 LKR