Bansei Royal Resorts IPO

Sri Lanka based Bansei Royal Resorts Hikkaduwa Limited has decided to list the firm in the Colombo Stock Exchange.

Accordingly, the resort firm will list the firm in the Colombo bourse as an introduction.

CSE has given approval to the firm to list 53,728,000 ordinary voting shares by way of an introduction.

The shares would be listed on the Diri Savi Board of the CSE.

Asiri Central Hospital delist from CSE

The latest company to announce delisting is Asiri Central Hospitals, which announced this decision on Thursday to the CSE. This followed an announcement by loss-making Beruwala Walk Inn PLC on Monday seeking permission from the CSE to delist the company in a bid to turn-around the organization and return to profits have failed over the past few years. “The company has been reporting losses almost every year since the tsunami as the hotel was extensively damaged and rendered non-operational unless huge capital is injected to demolish and reconstruct the hotel”.

Last month Kuruwita Textile Mills announced it was delisting for the same reasons as Beruwala Walk Inn.

The three companies said that they will take all necessary steps in accordance with the terms of the regulations issued by SEC pertaining to delisting of shares, including the convening of an Extra-Ordinary General Meeting of the shareholders to seek their approval.

Earnings Review Q3 FY 14- Aitken Spence Hotel Holdings PLC

 

An increase in overall occupancies drove AHUN’s revenue growth in Q3 FY 14. Gross revenue grew 15.8% YoY to LKR 3.4bn to which the Sri Lankan (SL) and South Asian (SA) segments contributed ~27% and 73% respectively. The SL and SA segments recorded gross revenues of LKR 933mn (+16.2% YoY) and LKR 2.5bn (+15.7% YoY) respectively. AHUN recorded an EBIT of LKR 948mn (+ 31.7% YoY) on higher revenue. During the period AHUN entered into an agreement with Spanish hotel group ‘RIU Hotels’ to construct a 500 room resort in Ahungalla. The expected cost of the project is ~USD 100mn. Further, an additional 240 rooms will be added to the group portfolio in FY 2015E. Based on DCF valuation we have arrived at a TP of LKR 82 with an upside of 13% to CMP. We recommend BUY.  

 

                                                                                                                            Source: Company data and BRS Research

 

 

 

BRS Equity Research | Bartleet Religare Securities (Pvt) Ltd, Sri Lanka

 

CIC Holdings PLC- (CIC-LKR 45.50) - Initiation Report

 

Looking for a clear direction : HOLD

 

CIC is a diversified company with a majority exposure to agriculture. With the top line forecasted to grow tamely at 1.6% three-year CAGR, CIC is attempting to realign strategy by shedding some of the loss making units. While we are positive of the efforts’ medium term results, we are concerned about the working capital financing CIC is likely to endure caused by the delay in the Government payment of the fertilizer subsidy. A DCF based valuation suggests a Target Price (TP) of LKR 48. CIC trades at 10.3x PE ratio in FY 2015E after a forecast loss in FY 2014E. We feel with the uncertainty of the subsidy payments coupled with the thin margins of the key business segments and the low forward ROEs, these forward trading multiples are not a bargain. We recommend HOLD.

 

 

 

	Source: Company data and BRS Research

 

 

 

 

 

 

 

 

BRS Equity Research | Bartleet Religare Securities (Pvt) Ltd, Sri Lanka

Sri Lankan IT-BPO and Knowledge Services industry taught importance of going public by CSE

 Sri Lanka's Colombo Stock Exchange (CSE) and the regulator, Securities and Exchange Commission (SEC), in association with the Sri Lanka Association of Software and Service Companies (SLASSCOM) is scheduled to host a forum to educate the IT-BPO and Knowledge Services industry on the importance of going public.

The Forum is another step to attract companies that are of high value and worth to the capital market, in order for them to enter into a mutually beneficial partnership of wealth creation and value addition with the public, the CSE said in a statement.

The potential-issuer relations forum will be held on the 5th of March at the Dialog Future World Auditorium, from 08.30 a.m. to 11.00 a.m.

The programme will commence with an introduction to the benefits of listing by CEO of CSE Rajeeva Bandaranaike, followed by a presentation on "Valuing your Company" by Vice-President of Copal Amba (A Moody's Subsidiary) Asanka Herath. Chairman of SLASSCOM Madu Ratnayake will also speak at the event.

The CEOs and CFOs of potential-issuer companies from the target industry will be given an opportunity to pose their questions to a distinguished panel of the capital market.

The panel will comprise Director of CSE Ray Abeywardena, AGM of Regulatory Affairs at CSE Renuke Wijayawardhane, and Deputy Director General & Officer-in-Charge of SEC Dhammika Perera. The panel will be moderated by Executive Director of SLASSCOM Imran Furkan.

The forum is further seen as an ideal opportunity for the decision makers of these entrepreneurial endeavors to mingle and network with the senior management representatives of Investment Banks, to build mutually beneficial relationships for the future, the statement said.

"Sri Lankan IT/BPM industry is on a rapid growth trajectory and gaining increasing attention globally. We would anticipate a growth of over 23% YoY this year at industry level, therefore many of the SLASSCOM companies are now gearing for their next phase of growth. Listing on the Stock Market would create avenues for companies to raise funds for this growth acceleration and will provide the general public an opportunity to participate in this very exciting growth phase of the industry, as investors. We are delighted to work with SEC and CSE to help companies understand the journey of raising funds from the capital market," Chairman of SLASSCOM Mr. Madu Ratnayake said.

"The Sri Lankan Capital Market is a vibrant atmosphere where long established, as well as entrepreneurial businesses can thrive by raising capital and maintaining a high standard of accountability to their stakeholders. By entering this affirmative environment, members of the knowledge services industry in Sri Lanka can benefit a great deal," Deputy Director General and Officer-in-Charge of SEC Dhammika Perera said.

"Listing on the Stock Exchange helps a company enhance its corporate profile and gives it a competitive advantage, while helping the company increase its worth by attracting strategic investors and high value employees. These benefits boost the prestige of a company and can thereby be utilized to fund the next stage of a company's expansion strategy," CEO of CSE Rajeeva Bandaranaike said.

-colombo page