JKSB: Full Year Highlights: Watawala Plantations PLC (WATA): FY19
FY19 was a year of transition to a new business model for WATA focusing on two products palm oil and milk. Reduction in turnover and profits during the year are attributable to the segregation of the tea business at the end of 2QFY18. GP and EBIT margins expanded from 25% to 37% and from 24% to 34% (YoY) respectively for the Group during FY19. Dairy segment which commenced business from 4QFY18 posted revenues of Rs.493Mn during FY19.
We currently project WATA’s full year FY20E earnings to reach Rs.910Mn. As the local production for both edible oil and milk falls short of the country’s demand, further consolidation of operations with an expected uptick in volumes and higher capacity utilization for both products augurs well for future growth. At the current price of Rs.20.90, WATA trades at an FY20E P/E of 4.62x, at a discount to the plantations sector in our coverage universe.
•JKSB is one of 15 founding members of the Colombo Stock Exchange with roots in share trading dating back to 1896, and is a subsidiary of John Keells Holdings PLC (JKH), the largest listed entity on the Colombo Stock Exchange with a market capitalization of US$ 1.3bn.
•JKSB’s core client base is Foreign Institutional Investors, Local Institutions and HNWI’s
•JKSB has a co-branded Research tie up with CIMB and a Research Referral agreement with Credit Suisse, along with trade execution relationships with several other global and regional securities firms.
•JKSB’s trade execution partners include Credit Suisse, CIMB, Merrill Lynch, Exotix, Daiwa, Convergex, Deutsche Asia Securities and Morgan Stanley
•JKSB is a research contributor to Bloomberg on ‘KEEL’
•The JKSB Research Universe covers 72 stocks across 15 sectors, with most Research efforts focused on approximately 45 of the more liquid counters.
•The JKSB Universe constitutes 67% of total market cap and approximately 80% of turnover at the CSE.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.