TILE AND CERAMIC SECTOR

@KavinduTM wrote:

@anges wrote:vone sound stock but very poor dividend

yeah. now i was talking about CFVF  what's ur idea about it ?

VONE is also good. waiting for the right time

@KavinduTM wrote:

@KavinduTM wrote:

@anges wrote:vone sound stock but very poor dividend

yeah. now i was talking about CFVF  what's ur idea about it ?

VONE is also good. waiting for the right time

both shares are good in my opinion ! cfvf has better dividend payout ! looks more attractive ! i bought cfvf around 19 and sold at 40 ! waiting for it to go down to around 30 to buy again ! vone try to buy below 15 and hold ! hope you have holding power

@anges wrote:

@KavinduTM wrote:

@KavinduTM wrote:

@anges wrote:vone sound stock but very poor dividend

yeah. now i was talking about CFVF  what's ur idea about it ?

VONE is also good. waiting for the right time

both shares are good in my opinion ! cfvf has better dividend payout ! looks more attractive ! i bought cfvf around 19 and sold at 40 ! waiting for it to go down to around 30 to buy again ! vone try to buy below 15 and hold ! hope you have holding power

Yeah but CFVF won't come that much down.
No i can't xD. it's boring to hold 

All the major VONE subsidiaries (TILE, LWL, RCL and LFIN) started going up again yesterday, except for Horana Plantation, which made an expected loss.

We maintain our BUY rating and with a revised target price of LKR 102.00/share (-1.9 to old; +33.5% upside; +41.4% TSR) following the downgrade of subsidiary estimates. TILE reported an EPS of LKR 5.09/share for 3Q FY20, above our expectation of an EPS of LKR 4.09/share for the quarter. Revenues came in LKR 2,278mn, up 45.1% QoQ during the period (- 3.8% YoY) which according to TILE was predominantly volume driven. With aggressive promotions to drive volumes, TILE has now moved to take on the top spot in volumes sold in the Sri Lankan tile industry. We maintain our view of a pickup in residential demand in FY21E, which currently is the main driver of volumes as the projects segment remains dormant. BUY.
Key statistics
Increased domestic production drives up margins
Revenues came in LKR 2,278mn, growing 45.1% QoQ (-3.8% YoY). Demand conditions remained slow during the quarter while a pickup in demand was seen during December. Despite plants running at full capacity, yields stood at ~78.0% due to efficiency issues with the new capacity. While the company adjusted its products by 8.0% for the decline in VAT, this was offset by reducing discounts by 5.0% in 3Q. We expect this to have a positive impact on TILE’s cashflow going forward. While revenues were flat, TILE posted a gross margin increase by 11.8pp YoY to 38.4% in 3Q FY20 driven by a 20.0% pick up in domestic production while imports fell 32.0%. We note that domestic tiles have gross margins of ~42.0% while imported tiles command margins of ~19.0%.
TILE moves to No. 1 spot in volumes sold in 2019
While industry volumes saw a 33.0% drop in 2019 to 16.0mn sqm, TILE moved up to take the market leader position in the floor tile market, surpassing RCL’s Rocel. At the end of 2019, TILE’s market share reached 21.5%, followed closely by Rocel at 20.8%, Macktiles with 9.2%, and interestingly, imports falling to 48.5% of the market (from 60.0% in 2017). We attribute the higher volumes to TILE’s aggressive promotions while the market share was mainly gained on the sale of lower margin, low priced product range, which has worked effectively in a time of a consumer spending slowdown. With up to 90.0% of sales in 2019 coming from residential demand, we expect TILE to benefit from a rebound in residential demand in 2020. We expect TILE to remain aggressive in FY21E to retain its market share position.
Reduced access to China to delay first export order on tripartite contract
Management note that the tripartite agreement with Foshan Shiwan Yulong Ceramic Co Ltd (Yulong) and Benjamin Maloy will be delayed by ~3-4 weeks due to delays in procuring the machinery required for the expansion. With the delay expected to be for a short period, we do not expect a major financial impact from this. As such, we do not make any changes to our estimates.
We revise FY21E target price to LKR 102.00/share FY21E. BUY.
As mentioned above, we expect a stronger pick up in volumes from residential demand in FY21E. We value the share at a TP of LKR 102.00/share (-1.9 to old; +33.5% upside; +41.4% TSR) in line with its 5-year historic P/E average of 5.6x
-Asia Securities-

@Promoney wrote:All the major VONE subsidiaries (TILE, LWL, RCL and LFIN) started going up again yesterday, except for Horana Plantation, which made an expected loss.

All TILE, LWL, RCL will run together. I recommended all 3 of them.

All 3 TILE shares are worthy @ current prices. Chance to buy

What an attractive prices.

My valuation for RCL is 175 at least. Let's see

@bonbon wrote:My valuation for RCL is 175 at least. Let's see

Thanks
LWL can reach 125 then 

With super result RCL reached Rs 162 last week

LWL only Rs 108

Both NAV over Rs 200

EPS RS 9 and 11 for LWL and RCL

I think LWL can reach Rs 160 if RCL reach 200

Tomorrow RCL 190+++++

Tomorrow is the day for tile lovers....most of them will get surprise from the market start

RCL ... PARQ ...LWL

in tile sector looking asset value is rubbish . You have to check profit for each dollar sale also cash per share . Cash flow per share and account receivable and inventory frequency is much important . We talked our youtube Rcl around 60 , and told the possibilities . Now iadvise you to exit from RCL. . Your guys got 300% enough profit.
https://youtu.be/FheIbluG4mI

@Teller,

This time I'm not same page with you. may be RCL will some price drop. for long run it will have good move.
for me now I don't think they need any help from LB(cash flow issue) like you mention old days. Q4 they will make much better cash flow.
I'm worry only about, due to COVID if they have to close down their factory.

And I don't think GOV will make room for china tiles future

Actually the way you value tile companies are not correct . Tile requires massive resources upto customers hand . The process is complicated and heavy cash flow concerns. What i believe investors pay tiles in high will have a higher cry too.

LWL is still good to enter.. my target it will reach 150/- easily. Demand is very high

@dilshangac wrote:LWL is still good to enter.. my target it will reach 150/- easily. Demand is very high

Yes dilshangac definitely all the tile sector companies will benefit from the import restrictions and it will continue even after the BUDJET as they are can manufacture locally.

@judecroos wrote:

@dilshangac wrote:LWL is still good to enter.. my target it will reach 150/- easily. Demand is very high

Yes dilshangac definitely all the tile sector companies will benefit from the import restrictions and it will continue even after the BUDJET as they are can manufacture locally.

I am very positive with regards to Tile Sector. But if someone plans to enter i strongly recommend to study the charts too before entering, because even if it is a very good share it is of utmost importance that you enter in the right price to maximize opportunities.

Just a kind reminder on the importance of “Entry Price”

Good Luck !

comparatively, to the RCL(152)/PARQ(71)/LWL(120),   TILE(117) has a chance to extend its share value.

TILE Dividend

LWL Dividend:
Voting Share (N)
Yes
Date Of Initial Announcement
10 Nov 2020
Dividend Per Share (Rs.)
Voting : 3.60
Type Of Dividend
First Interim
Financial Year
2020/2021
Shareholder Approval
Not Required
XD Date
19 Nov 2020
Payment Date
09 Dec 2020
Share Transfer Book
Open

Description
Interim Dividend For The Year Ending 31st March 2021

Will see continue of Ceramic rally

https://www.youtube.com/watch?v=bTIoP6KUtuU TILE already has future potential in exports and will have more benefits from import ban as they focus in low end tile market which has more influence from import ban