Hemas Holdings 4QFY12 Report

Sstar Wed Jun 13, 2012 12:14 pm

Hemas Holdings’ (HHL) 4QFY12 net earnings increased 19.6% YoY to LKR 372.1m, although FY12 net earnings remained broadly flat at LKR1.2bn, in line with our estimate. 4QFY12 earnings growth was primarily driven by higher finance income. Group Ebit margin contracted ~2ppts YoY, owing to margin contraction in the leisure, healthcare and power sector, which offset the margin improvement seen in the FMCG and transportation sector. Palm oil prices eased off from their highs in early FY12, which is likely to result in improved margins in the FMCG business. Net earnings would be further strengthened by: i) increased revenue from the hospital segment, ii) commissioning of the new mini hydro power plant, and iii) the re-opening of Hotel Serendib. The rebranded, premium 75-room hotel Avani Bentota is expected to make a full-year contribution in FY13ii. We expect HHL to deliver 21.1% net earnings Cagr over FY12-14ii. We upgrade our recommendation to a BUY with a target price of LKR28 (40% upside).

Attachments

: IIFL - Hemas Holdings - 4QFY12 - 20120613.pdf You don't have permission to download attachments.(827 Kb) Downloaded 17 times

: IIFL - The Front Page _SL_ -20120613.pdf You don't have permission to download attachments.(691 Kb) Downloaded 8 times