(Reuters) - The London Stock Exchange is in talks with Sri Lanka's Securities and Exchange Commission over allowing trading of some of the island nation's shares on the London bourse and vice versa, a regulator official said on Monday.
An agreement will help Sri Lanka's selected blue chips to be traded in London, opening up its market to foreign investors.
"This is still in an initial stage. We hope to progress after the discussion and if happens, it will be a great opportunity for Sri Lanka," Malik Cader, the director general of the SEC told Reuters in the sidelines of a national economic forum in Sri Lanka's capital, Colombo.
Cader declined to comment on the time frame for the process.
The LSE (LSE.L), which was forced to abort its $3.5 billion merger with Canada's TMX Group last week, has links with Sri Lanka after buying Sri Lankan technology company, Millennium IT.
The SEC is encouraging foreign companies to list on the Colombo Stock Exchange .CSE in order to get access to trade their shares in London market.
(Reporting by Shihar Aneez; Editing by Louise Heavens)
Sunday, July 10, 2011
Friday, May 20, 2011
Q411 Earnings Review - Royal Ceramics PLC (RCL)- bartleetstock
Net Revenue up 29.2% YoY to LKR 5,751mn from LKR 4,451mn
We believe the growth in volumes to be the key catalyst that led to top line growth. The prices have remained constant for both its Tile and Sanitary ware segment; indicating that the growth in volumes drove revenue in FY 2011. We expect a Net Revenue growth of 19.1% to LKR 6,848mn (previous estimate- LKR 7,460mn) for FY 2012E and a growth of 20.9% to LKR 8,279mn for FY 2013E, further steered by increased volumes.
Flat Gross Profit Margins
RCL achieved a Gross Profit growth of 25.4% to LKR 2,656mn in FY 2011. We expect RCL’s Gross Profit to grow by 17.4% YoY to LKR 3,120mn (previous estimate- LKR 3,446mn) in FY 2012E and by 22.8% to LKR 3,828 in FY 2013E. Gross Profit margins are expected to be steady at 45.6% for FY 2012E and 46.2% for FY 2013E.
EBIT growth of 27.2% in FY 2011 to LKR 1,579mn (previous estimate – LKR 1,560mn)
EBIT is adjusted for non-recurring gains of LKR 164mn in FY 2011. We expect an EBIT growth of 5.5% to LKR 1,665mn (previous estimate-LKR 1,875mn) in FY 2012E and 25.2% to LKR 2,085mn in FY 2013E. We believe the growth in volumes coupled with cost savings will aid in EBIT growth.
Valuation – Attractive at the current price of LKR 155.60; upside potential of 11.8%
Based on our new estimates we have arrived at a target price of LKR 173.93(previous estimate-LKR 165.28). Our valuations are based on a WACC of ~ 9.4% and terminal growth of 3.0%. The WACC is based on a debt to equity of 50%, beta of 0.91(based on ASPI vs. RCL stock price movements), risk free rate of 7.3% and an equity risk premium of 4.0%.
Regards,
BMS Equity Research Team | Bartleet Mallory Stockbrokers
Thursday, May 12, 2011
Recommendations for Expolanka IPO
Broker pulse on Expolanka IPO
Broker Comment
- Acuity Yes
- Asha Phillip Yes/Medium to Long Term
- Asia Securities Yes
- Assetline Neutral/Yes Long Term
- Ceylinco Yes
- CT Smith Yes
- DNH Yes/Medium to Long Term
- Heraymila Yes
- IIFL Ceylon Yes/Long Term
- John Keells Yes
- NDB Report Out Today
- Richard Peiris Neutral/Yes Long Term
- SC Securities Yes
- Taprobane Yes
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