TOKYO CEMENT COMPANY (LANKA) PLC

Ekanayake90 wrote:Fly ash cement grabs over third of sales at Sri Lanka’s Tokyo Cement
Thursday July 25, 2019 10:28:00
 

ECONOMYNEXT – Tokyo Cement Plc said its blended hydraulic cement made with fly ash from Sri Lanka’s coal power plants has made rapid market gains and made up 35 percent of sales by the March 2019 quarter.

"The new cement, which is not only stronger, but also contains sulphide resistance, and has more water impervious properties that ordinary Portland cement…:, Managing Director S R Gnanam told shareholders.

"..[O]ver the medium term we hope to transition from Portland to the more sophisticated, Blended Hydraulic Cement," Managing Director S R Gnanam told shareholders.

The cement is made to international standard with technical assistance from the firm’s Japanese partners Ube Cment.

"Ube provided Tokyo with on-site engineers to monitor the manufacturing process, to ensure international quality. Our manufacturing facilities continue to maintain technical communications with Ube."

The firm launched the product last year. In the June 2018 quarter BHC cement was only 5 percent of market share. But it had increased to 35 percent my March 2019, taking the market "by storm" Tokyo said.

BHC is made with ‘top-grade’ fly ash from coal plants in Norochcholai, in the Western coast of Sri Lanka. Fly ash from different coals may have different chemical properties or granular sizes.

Tokyo said a fly ash separator was set up in the second quarter of 2018/2019 year to develop the highest quality blended hydraulic cement.

The BHC cement complies to Sri Lanka Standard SLS 1247:2015 Strength Class 42.5N and BS EN 197-1:2011 under type CEB IV/A (V) 42.5 N – SR international standard, the firm said.

The introduction of fly ash as a partial substitute for some raw material making it the ‘greenest’ cement in Sri Lanka, the firm said. Tokyo also generates renewable power for its factories.

Tokyo Cement has the capacity to produce up to 2.8 million metric tonnes a year. In 2018 following monetary instability with a steep currency collapse the overall market has contracted, and the firm said it had excess capacity.

Tokyo had increased production 7.63 percent by gaining market share recording revenues of 38.49 billion rupees in the year ending March 2019.

The firm also produces other materials such including sand, plaster and tile adhesives. (Colombo/July25/2019)

Thank you so much for this material!!! 

Teller wrote:SLIC/EPF factor to consider
EPF strongly should not touch tokyo

Cliff777 wrote:EPF already owns 4.2% of TKYO.X. Currently EPF share of investments in the CSE is 3% of its portfolio. They are planning to raise it to 6% in 2020 as it was in the news. So it is highly likely that EPF will increase its stake in TOKY.X during the year. Further, this also means that circa LKR 36 billion additional funds will be invested in the CSE by the EPF this year if they raise their stake to 6% of its portfolio which they clearly announced.

Ekanayake90 wrote:Last year EPS - (1.23) DPS RS 0.30 paid when the company making losses

9M(current yr) EPS - 4.25  (DPS RS 1.2-1.5 can be expected)

Cliff777 wrote:OSEA pays higher dividend because their growth potential is low. I think what one needs to focus on when deducing the future share price is growth potential of the firm, profitability and of course the technical position. Considering these the potential share price increase of TKYO will be greater than the OSEA dividend yield of 7.81% by 12 May, which is the payment date of OSEA dividend. Unlike TKYO, OSEA YoY profits has fallen.