reports
- Naveed Majeed
Sri Lanka: Equity Strategy - Deep Value Unveiled As Hyperinflation Sub...
* As hyperinflationary dynamics begin to subside, the residual effect has unveiled a large dislocation in valuations of listed domestic players. * Steep price increases taken by domestic firms have been more than enough to offset a decline in volumes over 2022, resulting in strong revenue and earnings growth to new highs, despite a deteriorating macro picture. With the expansion in bottom line to new highs, it is our view that valuations need to adjust accordingly with the risk premium ...
JKH.N0000 JOHN KEELLS HOLDINGS PLC
ACL.N0000 ACL CABLES
CARG.N0000 CARGILLS (CEYLON) PLC
CCS.N0000 CEYLON COLD STORES
CTC.N0000 CEYLON TOBACCO
DIST.N0000 DISTILLERIES CO. OF SRI LANKA PLC
LLUB.N0000 CHEVRON LUBRICANTS LANKA PLC
HHL.N0000 HEMAS HOLDINGS
LION.N0000 LION BREWERY
NEST.N0000 NESTLE LANKA
GLAS.N0000 PIRAMAL GLASS CEYLON PLC
- Naveed Majeed
Sri Lanka: Consumer Sector Update 2023 - The Dividends of Recovery
* Steep price increases taken by domestic retail and consumer firms in 2022 were more than enough to offset a decline in volumes, resulting in strong revenue and earnings growth. * We saw a similar outcome unfolding in Turkey last year, where hyperinflation in the country led to record revenue and earnings growth for supermarket chains and consumer companies. * Recent electricity tariff and PAYE tax increases are negative headwinds for overall consumption in the near-term, but mode...
- Naveed Majeed
Hemas Holdings: A Vastly Underestimated Consumer Play With Lucrative U...
Underappreciated and undervalued HHL Consumer business offers compelling upside bet… * Hemas is one of the few Sri Lankan consumer names capable of achieving regional scale and presence. * We believe the company is well positioned to execute value accretive regional acquisitions in the consumer space and pursue an aggressive internationalization strategy given its strong consumer portfolio and balance sheet strength, in line with its stated internationalization and export strategy. ...
Hemas Holdings Plc: 1 director
A director at Hemas Holdings Plc bought 2,500,000 shares at 72.000LKR and the significance rating of the trade was 100/100. Is that information sufficient for you to make an investment decision? This report gives details of those trades and adds context and analysis to them such that you can judge whether these trading decisions are ones worth following. Included in the report is a detailed share price chart which plots discretionary trades by all the company's directors over the last two year...
- Naveed Majeed
Hemas Holdings: 1Q FY22 - Near-term headwinds, but growth story intact
We revise our estimates considering ongoing macroeconomic headwinds, a surge in COVID-19 infections and ongoing school closures. Our new sum-of-the-parts (SOTP) valuation-based target price moves to LKR 104.00/share, based on our revised estimates. Including a FY22E dividend of LKR 1.85/share, we derive a total shareholder return of +41.9%. We maintain our BUY rating. HEMS reported a 1Q FY22 net profit to equity shareholders of LKR 637bn, down 25.9% QoQ, missing our estimate. The Consumer seg...
- Naveed Majeed
Hemas Holdings: 4Q FY21 - Poised to deliver in FY22E; Atlas recovery w...
We maintain our sum-of-the-parts (SOTP) valuation-based target price for HHL at LKR 140.00/share. Including a FY22E dividend of LKR 2.50/share, we derive a total shareholder return of +66.7%. BUY. HEMS reported a 4Q FY21 net profit to equity shareholders of LKR 860mn, up 93.5% YoY, beating our estimates. Strong YoY earnings recovery was led by the Consumer segment and followed by Healthcare, which together accounted for more than 95.0% of group revenues during the quarter. In FY22E, we expect...
- Naveed Majeed
Hemas Holdings: Sri Lanka: HHL SL - Strong growth story intact as HEMS...
Including a strong result in 3Q FY21, divestment of the Leisure segment and strong earnings expectations for FY22E, our sum-of-the-parts (SOTP) valuation-based target price goes to LKR 140.00/share (previously LKR 130.00/share). Including a FY22E dividend of LKR 1.50/share, we derive a total shareholder return of +65.3%. BUY. HEMS reported a 3Q FY21 net profit to equity shareholders of ~LKR 1.4bn, up 43.0% YoY, beating our estimates. Earnings recovery was mainly led by the Consumer segment an...
- Isuri Munasinghe
- Kavinda Perera
- Lakshini Fernando
- Naveed Majeed
Sri Lanka: 2021 Equity Strategy - Zero In On The Recovery
* Colombo All Share Price Index ( recovered all losses since bottoming out in May 56 7 since May, +8.6% YTD) A Manufacturing drive led the gains opportunities remain in large caps that are yet to pickup * Negative interest rates is the key catalyst equities will remain the preferred asset class in 2021 amidst a low interest rate environment * We forecast ASPI to reach 7 400 7 600 in 2021 with local investors continuing to carry the mantle * Global investors would look to rebal...
SAMP.N0000 SAMPATH BANK
HNB.N0000 HATTON NATIONAL BANK PLC
COMB.N0000 COMMERCIAL BANK OF CEYLON
AAIC.N0000 SOFTLOGIC LIFE INSURANCE PLC
JKH.N0000 JOHN KEELLS HOLDINGS PLC
AEL.N0000 ACCESS ENGINEERING
CCS.N0000 CEYLON COLD STORES
HHL.N0000 HEMAS HOLDINGS
RCL.N0000 ROYAL CERAMICS LANKA
- Naveed Majeed
Hemas Holdings: 2Q FY21 - Strong growth story leaves room for further ...
With a stronger-than-expected earnings result in 2Q FY21, we revise our estimates upwards, leading to our DCF valuation-based 12-month target price of LKR 105.00/share (previously LKR 72.00/share). We expect HEMS to maintain a payout of 28.0% for the year, resulting in a total return of +39.2%. BUY. HEMS reported a 2Q FY21 net profit to equity shareholders of LKR 1.3bn compared to a profit of LKR 460mn in 2Q FY20, beating our estimate and the guidance provided by the company. Earnings ...
- Mangalee Goonetilleke
Hemas Holdings: Healthcare and domestic consumer drive growth
Including revisions to our estimates, we maintain our DCF valuation-based target price at LKR 72.00/share. At this point, we do not expect HEMS to pay a dividend in FY21E. As a result, we derive a total return of +20.0% and maintain our BUY rating. HEMS reported a 1Q FY21 net profit to equity shareholders of LKR 260mn compared to loss of LKR 376mn in 1Q FY20, beating our estimate and the guidance provided by the company. Earnings were mainly led by Healthcare, while the COVID-19 led lockdown ...
- Isuri Munasinghe
- Kavinda Perera
- Lakshini Fernando
- Mangalee Goonetilleke
- Naveed Majeed
Sri Lanka Focus List: 8 stocks – a mix of value and growth
Equities saw a ‘V-shaped’ recovery in May and June, largely driven by local participation, as foreign investors continued to exit. The ASPI has seen a measured upward move, and the trend seems to be continuing. With economic activities resuming, we see our base case economic scenario taking effect. While major debt-repayment concerns are somewhat easing, bond markets indicate that the fiscal risk is being priced in. We highlight eight stocks, which hold upside potential in the current envi...
- Mangalee Goonetilleke
Hemas Holdings: Exposure to essential sectors sets a stronger recovery
We incorporate the impact on earnings for FY21-23E and value HEMS at LKR 72.00/share (previously LKR 98.50/share) on our DCF-based valuation. At this point, we do not expect HEMS to pay a dividend in FY21E. As a result, we derive a total return of +17.5% and maintain our BUY rating. HEMS reported a 4Q FY20 net profit to equity shareholders of LKR 480mn, down 33.6% YoY. While Healthcare revenues saw a notable improvement during the quarter, the COVID-19 lockdown resulted in a negative impact ...
- Mangalee Goonetilleke
Spending recovery to help dormant local H&PC business; upgrade to Buy
Recovery in consumer business key contributor to earnings upside In a spending recovery, the home and personal care (H&PC) segment is second in line to see a pickup in demand after food retailing. As such, with a strong portfolio in the local H&PC market, we expect HEMS to see a notable pickup in demand. While HEMS has invested in product development, the business has remained relatively dormant with flat volume growth over the past two years on the back of depressed consumer spending. With i...
- Dishan Leo
JKSB: Quarterly Highlights: Hemas Holdings PLC (HHL): 1QFY20
HHL concluded 1QFY20 posting a decline in revenues (-2.3% YoY) while profits saw a sharp contraction by 199.9% (YoY) mainly due to 1) the economic slowdown seen overall in the aftermath of the Easter Sunday attacks, 2) impacts to the business mix which saw high margins segments such as FMCG been severely affected during the quarter, 3) losses in the leisure segment due to the after effects from tourism with a sharp drop in arrivals in the months of May and June and 4) overall subdued consumer en...
- Dishan Leo
JKSB: Quarterly Highlights: Hemas Holdings PLC (HHL): 4QFY19
HHL concluded FY19 posting healthy growth in revenues (+28.5% YoY) alongside improved earnings (25.4% YoY) for the year. However, results for FY19 was skewed due to the acquisition of Atlas in 1QFY18. The contribution of Atlas to HHL’s full year earnings alongside a one off gain from disposal of Hemas Southern Hospital, fair vale gains and unrealized exchange losses had a significant impact on the full year results for HHL. GP margins for FY19 contracted from 35.50% to 33.52% owing to the steep ...
- Dishan Leo
JKSB Quarterly Highlights_Hemas Holdings PLC (HHL)_3QFY19
Quarterly results comparison was skewed due to the acquisition of Atlas in January 2018 with HHL posting strong revenue growth (+46.8% YoY) and earnings (+50.4% YoY) for 3QFY19 amid sluggish conditions in the consumer segment. Atlas drove quarterly earnings posting robust growth in revenue (+13% YTD) and profitability (+13% YTD) for the quarter ended. The sharp depreciation of the rupee during the period alongside a slowdown in the consumer and logistics segments resulted in a compression in ...
- Usama Jiffry
- Usama Jiffry
Hemas Holdings PLC - Earnings Review 2QFY2018
The macroeconomic context affecting the company will have a bearing on the future performance of the counter given the role of disposable income, taxes, etc. on consumption. The company also believes the overall business environment will be challenging in the second half of the year as well. Therefore the near term will have challenges for the company. Improvements in the Bangladesh environment and recoveries in economic conditions will provide the impetus for the company in the short to medium ...
- Usama Jiffry
Hemas Holdings PLC - Earnings Review 4QFY2017
HHL has proved to be a consistent counter growing its core business sectors. The healthcare and FMCG sectors have over the recent past experienced growth momentum in its top line. The company has been successful in mitigating the effects of the VAT increases affecting its core businesses. We believe the current price level of the counter factors in the short term opportunities present for the company. We are also of the view that the growth momentum from its investments in Bangladesh and local...
Ford Equity International Rating and Forecast Report
Ford Equity International Research Reports cover 60 countries with over 30,000 stocks traded on international exchanges. A proprietary quantitative system compares each company to its peers on proven measures of business value, growth characteristics, and investor behavior. Ford's three recommendation ratings buy, hold and sell, represent each stock’s return potential relative to its own country market.. The rating reports which are generated each week, include the fundamental details behind...
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