Monday, March 10, 2014

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


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