source - CAL Research
Friday, June 1, 2012
Thursday, May 31, 2012
Sanasa Dev. Bank debuts on CSE today; IFC buys 3.57% stake for Rs. 99 m
Sanasa Development Bank Ltd. (SDBL) will debut today on the Main Board, enhancing the already well-represented banks, finance and insurance sector of the Colombo Stock Exchange.
SDBL will be the 34th Main Board listed firm in the sector and the 58th overall inclusive of Diri Savi Board firms within the financial services sector. In the broader market, SDBL will be the 281st listed company.
The listing of 25.17 million shares is following an introduction. The reference price of SDB share is Rs. 125.
Prior to the listing the World Bank’s private sector investment arm, International Finance Corporation (IFC) has acquired a 3.57% stake amounting to 900,000 shares for Rs. 99 million.
Analysts are of the view that IFC’s confidence in SDBL augurs well for the new entrant, apart from its own unique strengths.
Sanasa Insurance Company owns a 4.17% stake and People’s Leasing Company holds 3.97%.
Several regional Sanasa trust companies are among other major shareholders whilst there are 63,290 shareholders comprising of SANASA societies which collectively hold a 77% stake in SBDL.
In 2011, SDBL posted an after tax profit of Rs. 345 million, up from Rs. 323 million in the previous year and a mere Rs. 54 million five years ago. Its asset base is Rs. 21.17 billion, up from Rs. 17.5 billion in 2010 and Rs. 8.5 billion in 2007. Liabilities amounted to Rs. 18.1 billion, up from Rs. 15.3 billion in 2010 and Rs. 7.7 billion five years ago.
As at 29 February 2012, SDBL had a customer base of approximately 788,000 account holders and its public deposits base amounted to approximately Rs. 16.1 billion. Its loans and advances amounted to Rs. 14.8 billion as at end 2011, up from Rs. 11.1 billion in 2011 and Rs. 5.3 billion in 2007.
SDBL has 47 branches and 41 extension branches situated islandwide. More than 8,400 credit societies also function as virtual branches of SDB, attracting customers to its ranks.
It also currently enjoys credit rating of ‘BB+(lka)’ with a stable outlook from Fitch Rating Lanka Limited and long and short term financial institution ratings of ‘BBB’ and ‘P3’ respectively with a stable outlook from RAM Ratings.
SDBL was established in 1997 as the main credit institution for the SANASA movement, which was formed in 1978. The SANASA movement has grown to include 8,424 SANASA primary societies and 35 SANASA district unions. It is present in all provinces of Sri Lanka. The functionality of the movement has also expanded from providing basic credit facilities to include insurance, education and training, construction and even travel arrangements.
SANASA societies collectively hold a majority stake in SDBL. It is a unique financial institution when compared to other institutions in Sri Lanka due to its heritage linked to co-operative movement with the aim of fostering sustainable economic development through the provision of credit to the rural poor.
Other unique features of SDBL include provision of technical assistance programs, entrepreneurship skill development, collective business enterprises and information technology assistance to the Community. These features have expanded SDBL’s focus from simply profits to a broader goal of overall betterment of communities.
Over the past 14 years, SDBL has become an integral part of pioneering microfinance industry in the country. SDBL has been able to partner effectively with the vast network of SANASA primary societies as well as fraternal members of SANASA movement to reach the masses that remained excluded from mainstream development to improve income as well as develop sustainable livelihoods and sustainable communities.
source - www.ft.lk
SDBL will be the 34th Main Board listed firm in the sector and the 58th overall inclusive of Diri Savi Board firms within the financial services sector. In the broader market, SDBL will be the 281st listed company.
The listing of 25.17 million shares is following an introduction. The reference price of SDB share is Rs. 125.
Prior to the listing the World Bank’s private sector investment arm, International Finance Corporation (IFC) has acquired a 3.57% stake amounting to 900,000 shares for Rs. 99 million.
Analysts are of the view that IFC’s confidence in SDBL augurs well for the new entrant, apart from its own unique strengths.
Sanasa Insurance Company owns a 4.17% stake and People’s Leasing Company holds 3.97%.
Several regional Sanasa trust companies are among other major shareholders whilst there are 63,290 shareholders comprising of SANASA societies which collectively hold a 77% stake in SBDL.
In 2011, SDBL posted an after tax profit of Rs. 345 million, up from Rs. 323 million in the previous year and a mere Rs. 54 million five years ago. Its asset base is Rs. 21.17 billion, up from Rs. 17.5 billion in 2010 and Rs. 8.5 billion in 2007. Liabilities amounted to Rs. 18.1 billion, up from Rs. 15.3 billion in 2010 and Rs. 7.7 billion five years ago.
As at 29 February 2012, SDBL had a customer base of approximately 788,000 account holders and its public deposits base amounted to approximately Rs. 16.1 billion. Its loans and advances amounted to Rs. 14.8 billion as at end 2011, up from Rs. 11.1 billion in 2011 and Rs. 5.3 billion in 2007.
SDBL has 47 branches and 41 extension branches situated islandwide. More than 8,400 credit societies also function as virtual branches of SDB, attracting customers to its ranks.
It also currently enjoys credit rating of ‘BB+(lka)’ with a stable outlook from Fitch Rating Lanka Limited and long and short term financial institution ratings of ‘BBB’ and ‘P3’ respectively with a stable outlook from RAM Ratings.
SDBL was established in 1997 as the main credit institution for the SANASA movement, which was formed in 1978. The SANASA movement has grown to include 8,424 SANASA primary societies and 35 SANASA district unions. It is present in all provinces of Sri Lanka. The functionality of the movement has also expanded from providing basic credit facilities to include insurance, education and training, construction and even travel arrangements.
SANASA societies collectively hold a majority stake in SDBL. It is a unique financial institution when compared to other institutions in Sri Lanka due to its heritage linked to co-operative movement with the aim of fostering sustainable economic development through the provision of credit to the rural poor.
Other unique features of SDBL include provision of technical assistance programs, entrepreneurship skill development, collective business enterprises and information technology assistance to the Community. These features have expanded SDBL’s focus from simply profits to a broader goal of overall betterment of communities.
Over the past 14 years, SDBL has become an integral part of pioneering microfinance industry in the country. SDBL has been able to partner effectively with the vast network of SANASA primary societies as well as fraternal members of SANASA movement to reach the masses that remained excluded from mainstream development to improve income as well as develop sustainable livelihoods and sustainable communities.
source - www.ft.lk
Bourse lifts from 22-month low on bargain hunting
Reuters: The stock market rose on Wednesday for the first time in eight sessions as investors snapped up discount shares after month-end settlements and margin calls.
The main index rose 0.79 per cent, or 37.90 points, to 4,851.16, up from its lowest close since 20 July 2010.
“There has been some bargain hunting,” said one stockbroker, speaking on condition of anonymity. “It seems the month end settlements are over and (we have) seen some buying coming in.”
The bourse had lost 7.8 per cent in seven consecutive sessions until Wednesday, as mostly retail investors unloaded their stakes as a result of concerns about new regulatory measures, uncertainty over the rupee currency, rising interest rates, and slowing economic growth.
Last week, the Securities and Exchange Commission (SEC) issued a rule barring brokers from selling shares for six months from the day of buying, a move which triggered selling.
Foreign investors sold a net Rs. 110.4 million worth of shares on Wednesday, but they have been net buyers of Rs. 22.5 billion so far this year. Turnover was Rs. 673.7 million.
The market is one of the worst performers in Asia, having fallen 19.91 per cent since the start of the year.
The rupee fell to 132.40/60 against the dollar on Wednesday, its lowest since 25 April, from Tuesday’s close of 132.00/10 on importer demand for dollars in light trade.
source - www.ft.lk
The main index rose 0.79 per cent, or 37.90 points, to 4,851.16, up from its lowest close since 20 July 2010.
“There has been some bargain hunting,” said one stockbroker, speaking on condition of anonymity. “It seems the month end settlements are over and (we have) seen some buying coming in.”
The bourse had lost 7.8 per cent in seven consecutive sessions until Wednesday, as mostly retail investors unloaded their stakes as a result of concerns about new regulatory measures, uncertainty over the rupee currency, rising interest rates, and slowing economic growth.
Last week, the Securities and Exchange Commission (SEC) issued a rule barring brokers from selling shares for six months from the day of buying, a move which triggered selling.
Foreign investors sold a net Rs. 110.4 million worth of shares on Wednesday, but they have been net buyers of Rs. 22.5 billion so far this year. Turnover was Rs. 673.7 million.
The market is one of the worst performers in Asia, having fallen 19.91 per cent since the start of the year.
The rupee fell to 132.40/60 against the dollar on Wednesday, its lowest since 25 April, from Tuesday’s close of 132.00/10 on importer demand for dollars in light trade.
source - www.ft.lk
Aitken Spence profits up by 46%, Dividends by 40%
With a stellar performance from its tourism sector, Aitken Spence PLC has reported its highest-ever profit before tax of Rs. 5.5 billion for 2011/12.
The company posted a consolidated profit after tax of Rs. 4.7 billion for the year financial year ended 31 March 2012, Aitken Spence said in a statement.
The blue chip showed a net profit attributable to the shareholders of Rs. 3.7 billion, a remarkable 46.2 per cent increase from last year, while revenue grew by 22 per cent to Rs. 30.7 billion. During the year Aitken Spence realised a gain of Rs. 655 million with the strategic decision to sell the company’s stake in Colombo International Container Terminals Ltd.
Aitken Spence reported an exceptional growth in earnings per share of 46.3 per cent to Rs. 9.14 and announced a dividend of Rs. 1.40 per share which is an increase of 40 per cent over the previous year.
The Group’s fourth quarter net profit attributable to shareholders surged by 92.8 per cent to Rs. 1.76 billion while profit after tax swelled to Rs. 2.14 billion, a 73.5 per cent increase over the corresponding period in the previous year. Net revenue for the final quarter rose by 39.1 per cent to Rs. 9.65 billion.
Aitken Spence Deputy Chairman and Managing Director, J M S Brito said, “The hallmarks of our success and sustainability have been our ability to harness the right business opportunities; our capacity and agility to reposition, realign and reinvent ourselves to capitalize on market realities; and the business acumen and instincts of our team of well-honed professionals whose bold decisions have paved the way for the stable and solid results.”
The Tourism sector of Aitken Spence achieved a record Rs. 2.6 billion profit from operations. This was an outstanding 65.3 per cent improvement in performance in comparison to the previous year.
Revenue from the Tourism sector grew by 13 per cent to Rs. 11.3 billion. The Tourism sector contributed nearly 50 per cent of the Group’s profit from operations in the financial year 2011/12, regaining is position as the number one contributor.
The highest contributor towards the sector’s growth was the Group’s resort properties in the Maldives. The results followed a strategic revision of our operations in the Maldives, taking into account the present market realities and trends. The Group’s six resorts compete in different market segments, but are collectively positioned in the 4 star and 5 star categories, which has seen a heavy demand in a market studded with up market resorts.
The Sri Lankan hotels recorded operating profits on par with 2010/11, due solely to closures of several key properties for refurbishment. Heritance Tea Factory performed exceptionally well during the year, while Heritance Ahungalla also returned a satisfactory performance. Heritance Ayurveda Maha Gedara opened its doors during the year as an authentic Ayurveda resort and has been well accepted by the market. The Dambulla wing of Heritance Kandalama was closed for six months for construction of a conference hall and refurbishment of guest rooms. The conference hall is expected to be completed by July 2012. The Sands by Aitken Spence, the Kalutara resort acquired in 2010, opened in May 2012 following an extensive refurbishment. A further 90 rooms will be added to the property by end 2013. In a first for Sri Lanka, The Sands will operate as an all inclusive hotel with dine around concept, offering three dining options to guests.
With the tourism industry shifting towards a more sustainable business model by making itself greener and more socially responsible, Aitken Spence hotels are proud to have been at the forefront of promoting sustainable tourism, long before its hype in the industry. This year the various properties were rewarded for this commitment by receiving a plethora of awards. To name a few, The Heritance Tea Factory was the only hotel to win a PATA Grand Award in the ‘Heritage and Culture’ category, while the Group’s hotels swept the boards at the National Energy Efficiency Awards 2011, winning Gold (Heritance Kandalama), Silver (Heritance Tea Factory) and Bronze (Heritance Ahungalla) in the Large Scale Hotel Sector category.
The sector’s Indian operations continue on a management model and further expansion is envisaged. The hotels in the Oman segment turned around, recording satisfactory growth.
The destination management segment of the Group enjoyed its best year on record, strengthening its leadership position with a substantial growth year on year by enabling to achieve a healthy mix of tourists from the traditionally strong European sector as well as from new generating markets such as India, Middle East and Eastern Europe.
The Cargo Logistics sector of the Group recorded its best performance to date achieving a profit from
operations of Rs. 846.8 million, which was a 40.7% growth over the previous year. This profitability was generated from a revenue that grew by 13.9% over the previous year to Rs. 4.7 billion.
The maritime segment of the sector enjoyed exceptional growth in profitability despite the immense competitive pressure faced by the global maritime industry.
The logistics segment of the Cargo Logistics sector which handles the land based logistics continued its fine performance, marking the sixth year of continuous growth and quadrupling earnings during that period. The largest player in Sri Lanka offering a full spectrum of logistics services, the segment continued to invest further in building capacity. The freight forwarding segment experienced the ripple effects of tough global conditions, as the slowdown in the European and the US economies continued throughout 2011.
The Strategic Investments sector recorded a net revenue of Rs. 14 billion for the financial year, a growth of 30.3 per cent compared to the previous year. Its net profit from operations rose by 17.7 per cent to Rs. 1.1 billion. The sector includes the Group’s Power, Printing, Plantations and Garments segments.
The power segment continued to achieve a positive performance during the year, whilst moving forward with its initiatives for the generation of renewable energy in Sri Lanka and taking its first steps to venture overseas to set up and operate power generation plants in the region. These positive results were achieved despite the significant impact the closure the segment’s main power plant in Embilipitiya in the beginning of the year due to a technical failure which was subsequently corrected by the equipment supplier. The power generation companies of Aitken Spence leads the industry in environmental, health & safety and quality standards.
The printing segment enjoyed a satisfactory year, regaining market share in the packaging industry and enhancing capacities to position itself as a preferred print partner for high quality products for local and export markets. Operations have begun at the newly constructed state-of-the-art green factory complex in Mawaramandiya.
The Services sector of the Group recorded a net revenue of Rs. 1.7 billion during the year 2011/12, achieving a 13.3% growth over the previous year, while the Sector’s net profit from operations rose by 23.5 per cent to Rs. 977.6 million.
“Extensive efforts were undertaken during 2011/12 for capacity building on sustainability with the Group committing over 60,000 man hours towards capacity building on sustainability topics and implementation of the strategy”, added J M S Brito, Deputy Chairman and Managing Director of Aitken Spence PLC.
During the financial year, Aitken Spence invested in over Rs. 30 million in community investments including a contribution of Rs. 15 million for the Gemi Diriya Sanitation and Water Project which benefited about 350 families within the immediate vicinity of the Embilipitiya power plant. The company also commissioned a road development project in close vicinity of its container yard at a cost of about Rs. 8 million. Ninety per cent of the Group’s sustainability committee members, who are responsible for the execution of sustainability driven strategies at subsidiary level, have been trained since the Human Rights at the Workplace programme was introduced in 2010 to the Group.
Majority of which received their training during the 2011/12 financial year.
source - www.ft.lk
The company posted a consolidated profit after tax of Rs. 4.7 billion for the year financial year ended 31 March 2012, Aitken Spence said in a statement.
The blue chip showed a net profit attributable to the shareholders of Rs. 3.7 billion, a remarkable 46.2 per cent increase from last year, while revenue grew by 22 per cent to Rs. 30.7 billion. During the year Aitken Spence realised a gain of Rs. 655 million with the strategic decision to sell the company’s stake in Colombo International Container Terminals Ltd.
Aitken Spence reported an exceptional growth in earnings per share of 46.3 per cent to Rs. 9.14 and announced a dividend of Rs. 1.40 per share which is an increase of 40 per cent over the previous year.
The Group’s fourth quarter net profit attributable to shareholders surged by 92.8 per cent to Rs. 1.76 billion while profit after tax swelled to Rs. 2.14 billion, a 73.5 per cent increase over the corresponding period in the previous year. Net revenue for the final quarter rose by 39.1 per cent to Rs. 9.65 billion.
Aitken Spence Deputy Chairman and Managing Director, J M S Brito said, “The hallmarks of our success and sustainability have been our ability to harness the right business opportunities; our capacity and agility to reposition, realign and reinvent ourselves to capitalize on market realities; and the business acumen and instincts of our team of well-honed professionals whose bold decisions have paved the way for the stable and solid results.”
The Tourism sector of Aitken Spence achieved a record Rs. 2.6 billion profit from operations. This was an outstanding 65.3 per cent improvement in performance in comparison to the previous year.
Revenue from the Tourism sector grew by 13 per cent to Rs. 11.3 billion. The Tourism sector contributed nearly 50 per cent of the Group’s profit from operations in the financial year 2011/12, regaining is position as the number one contributor.
The highest contributor towards the sector’s growth was the Group’s resort properties in the Maldives. The results followed a strategic revision of our operations in the Maldives, taking into account the present market realities and trends. The Group’s six resorts compete in different market segments, but are collectively positioned in the 4 star and 5 star categories, which has seen a heavy demand in a market studded with up market resorts.
The Sri Lankan hotels recorded operating profits on par with 2010/11, due solely to closures of several key properties for refurbishment. Heritance Tea Factory performed exceptionally well during the year, while Heritance Ahungalla also returned a satisfactory performance. Heritance Ayurveda Maha Gedara opened its doors during the year as an authentic Ayurveda resort and has been well accepted by the market. The Dambulla wing of Heritance Kandalama was closed for six months for construction of a conference hall and refurbishment of guest rooms. The conference hall is expected to be completed by July 2012. The Sands by Aitken Spence, the Kalutara resort acquired in 2010, opened in May 2012 following an extensive refurbishment. A further 90 rooms will be added to the property by end 2013. In a first for Sri Lanka, The Sands will operate as an all inclusive hotel with dine around concept, offering three dining options to guests.
With the tourism industry shifting towards a more sustainable business model by making itself greener and more socially responsible, Aitken Spence hotels are proud to have been at the forefront of promoting sustainable tourism, long before its hype in the industry. This year the various properties were rewarded for this commitment by receiving a plethora of awards. To name a few, The Heritance Tea Factory was the only hotel to win a PATA Grand Award in the ‘Heritage and Culture’ category, while the Group’s hotels swept the boards at the National Energy Efficiency Awards 2011, winning Gold (Heritance Kandalama), Silver (Heritance Tea Factory) and Bronze (Heritance Ahungalla) in the Large Scale Hotel Sector category.
The sector’s Indian operations continue on a management model and further expansion is envisaged. The hotels in the Oman segment turned around, recording satisfactory growth.
The destination management segment of the Group enjoyed its best year on record, strengthening its leadership position with a substantial growth year on year by enabling to achieve a healthy mix of tourists from the traditionally strong European sector as well as from new generating markets such as India, Middle East and Eastern Europe.
The Cargo Logistics sector of the Group recorded its best performance to date achieving a profit from
operations of Rs. 846.8 million, which was a 40.7% growth over the previous year. This profitability was generated from a revenue that grew by 13.9% over the previous year to Rs. 4.7 billion.
The maritime segment of the sector enjoyed exceptional growth in profitability despite the immense competitive pressure faced by the global maritime industry.
The logistics segment of the Cargo Logistics sector which handles the land based logistics continued its fine performance, marking the sixth year of continuous growth and quadrupling earnings during that period. The largest player in Sri Lanka offering a full spectrum of logistics services, the segment continued to invest further in building capacity. The freight forwarding segment experienced the ripple effects of tough global conditions, as the slowdown in the European and the US economies continued throughout 2011.
The Strategic Investments sector recorded a net revenue of Rs. 14 billion for the financial year, a growth of 30.3 per cent compared to the previous year. Its net profit from operations rose by 17.7 per cent to Rs. 1.1 billion. The sector includes the Group’s Power, Printing, Plantations and Garments segments.
The power segment continued to achieve a positive performance during the year, whilst moving forward with its initiatives for the generation of renewable energy in Sri Lanka and taking its first steps to venture overseas to set up and operate power generation plants in the region. These positive results were achieved despite the significant impact the closure the segment’s main power plant in Embilipitiya in the beginning of the year due to a technical failure which was subsequently corrected by the equipment supplier. The power generation companies of Aitken Spence leads the industry in environmental, health & safety and quality standards.
The printing segment enjoyed a satisfactory year, regaining market share in the packaging industry and enhancing capacities to position itself as a preferred print partner for high quality products for local and export markets. Operations have begun at the newly constructed state-of-the-art green factory complex in Mawaramandiya.
The Services sector of the Group recorded a net revenue of Rs. 1.7 billion during the year 2011/12, achieving a 13.3% growth over the previous year, while the Sector’s net profit from operations rose by 23.5 per cent to Rs. 977.6 million.
“Extensive efforts were undertaken during 2011/12 for capacity building on sustainability with the Group committing over 60,000 man hours towards capacity building on sustainability topics and implementation of the strategy”, added J M S Brito, Deputy Chairman and Managing Director of Aitken Spence PLC.
During the financial year, Aitken Spence invested in over Rs. 30 million in community investments including a contribution of Rs. 15 million for the Gemi Diriya Sanitation and Water Project which benefited about 350 families within the immediate vicinity of the Embilipitiya power plant. The company also commissioned a road development project in close vicinity of its container yard at a cost of about Rs. 8 million. Ninety per cent of the Group’s sustainability committee members, who are responsible for the execution of sustainability driven strategies at subsidiary level, have been trained since the Human Rights at the Workplace programme was introduced in 2010 to the Group.
Majority of which received their training during the 2011/12 financial year.
source - www.ft.lk
Wednesday, May 30, 2012
Sri Lankan stocks up 1.07 percent
May 30, 2012 (LBO) – Sri Lankan share prices recovered on Wednesday, after nearly a week of sustained selling, with buying interest in selected blue-chip counters, brokers said.
The broader All Share Price index gained 1.07 percent or 51.86 points to close at 4,865.12, while the more liquid 25-stock Milanka Price Index added 14.66 points or 0.33 percent to end at 4,327.97.
Nearly half of Wednesday’s turnover of 673.9 million rupees came from conglomerate John Keells Holdings PLC, according to Colombo Stock Exchange figures.
Market heavyweight JKH, with investments in transport, leisure and food, closed down 2.80 rupees at 185.00 rupees. Over 2.1 million shares worth 391.3 million rupees changed hands during the day.
Three-large blocks of JKH shares of 271,000, 430,275 and 1 million parcels crossed the trading floor at 185.00 rupees a share each.
A separate block of 158,943 JKH shares was also sold at 187.80 rupees.
Central Finance PLC, one of the country’s largest finance houses, closed up 7.70 rupees to 131.00 rupees on trades of 554,718.
Brokers said two blocks of Central Finance of 275,000 share each, crossed the floor at a pre-agreed price of 135.00 rupees each.
Citrus Leisure PLC, which owns a few beach front properties, fell 1.70 rupees to 21.30 rupees on trades of 1.7 million shares.
source - www.lbo.lk
The broader All Share Price index gained 1.07 percent or 51.86 points to close at 4,865.12, while the more liquid 25-stock Milanka Price Index added 14.66 points or 0.33 percent to end at 4,327.97.
Nearly half of Wednesday’s turnover of 673.9 million rupees came from conglomerate John Keells Holdings PLC, according to Colombo Stock Exchange figures.
Market heavyweight JKH, with investments in transport, leisure and food, closed down 2.80 rupees at 185.00 rupees. Over 2.1 million shares worth 391.3 million rupees changed hands during the day.
Three-large blocks of JKH shares of 271,000, 430,275 and 1 million parcels crossed the trading floor at 185.00 rupees a share each.
A separate block of 158,943 JKH shares was also sold at 187.80 rupees.
Central Finance PLC, one of the country’s largest finance houses, closed up 7.70 rupees to 131.00 rupees on trades of 554,718.
Brokers said two blocks of Central Finance of 275,000 share each, crossed the floor at a pre-agreed price of 135.00 rupees each.
Citrus Leisure PLC, which owns a few beach front properties, fell 1.70 rupees to 21.30 rupees on trades of 1.7 million shares.
source - www.lbo.lk
Tuesday, May 29, 2012
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