TILE AND CERAMIC SECTOR

Watch VONE. Share prices of all its major subsidiary companies have gone up exponentially.. RCL, LWL, TILE, LFIN, were among the biggest gainers since the election. The holding company VONE was kept down.. now its starting to move up

Promoney wrote:Watch VONE. Share prices of all its major subsidiary companies have gone up exponentially.. RCL, LWL, TILE, LFIN, were among the biggest gainers since the election. The holding company VONE was kept down.. now its starting to move up

Yeah VONE is having majority shares of RCL neh?   

Ye there is a chance for a run. did u buy VONE?

I collected yesterday when it was pushed down, and more today. If you check the earnings and net asset value, VONE is the best valued diversified holdings company at the current price level.

Yes i agree. VONE is interesting.
i missed it yesterday.but why isn't it paying dividends 

Sri Lanka market is growth based. It neither efficient nor liquid enough to benefit from dividend payouts. You would have noticed the price doesn't adjust properly cum dividend and ex dividend. For some companies when a dividend is declared the price doesn't go up equally it might be less.. and when its ex dividend, the price may fall way below the ex price.. for some companies the opposit happens.. So the dividend doesnt play a role, coz the market price goes way above or below.. adjusted radically based on market forces.. Some good dividend companies have not given the long term investor the return coz the share price has fallen way below the cumulative dividends that have been declared all throughout..

Yeah that's kinda true.
What's ur target for VONE? technical charts don't show anything wrong but what about fundamentals?

@Promoney : Whats ur idea about CFVF?

Promoney wrote:Sri Lanka market is growth based. It neither efficient nor liquid enough to benefit from dividend payouts. You would have noticed the price doesn't adjust properly cum dividend and ex dividend. For some companies when a dividend is declared the price doesn't go up equally it might be less.. and when its ex dividend, the price may fall way below the ex price.. for some companies the opposit happens.. So the dividend doesnt play a role, coz the market price goes way above or below.. adjusted radically based on market forces.. Some good dividend companies have not given the long term investor the return coz the share price has fallen way below the cumulative dividends that have been declared all throughout..

Can this be due to information about dividends is known to a few before it becomes public and the price has already adjusted before the announcement. And when we buy after the announcement hoping that the price will go up, the insiders sell to us and get the profit????

If you re holding the share long term for dividends, it wouldn't matter when the price goes up and adjusts. Giving a dividend means and equal amout is reduced from the net assets, which is a reduction in the capital, so it evetually amounts to the same thing. So its not like interest you get on deposits. Interest is not paid out of the deposit value.

My personal recommendation for CFVF is, collect and hold.

Okay will see

:Dold members

fireshelter wrote: :Dold members

 Where are they 

Promoney wrote:My personal recommendation for CFVF is, collect and hold.

Yeah good to collect and hold but i'm gonna try it at the best time. (it's close)

Dont have to push the price up and collect. Patiently collect..

Promoney wrote:Dont have to push the price up and collect. Patiently collect..

Yeah but i wanna try that.
which will give us maximum gain in short time.

when we got stuck our money in a share, that's the worst.
Better to wait till the right time.

Promoney wrote:Dont have to push the price up and collect. Patiently collect..

Still it's not the time. That's why i am waiting haha

But it's close   

vone sound stock but very poor dividend

anges wrote:vone sound stock but very poor dividend

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

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