CAL recommends to SELL CEYLON TOBACCO COMPANY

Go down

CAL recommends to SELL CEYLON TOBACCO COMPANY  Empty CAL recommends to SELL CEYLON TOBACCO COMPANY

Post  hariesha on Wed Aug 07, 2013 12:45 pm

1H2013 EARNINGS REVIEW - MAINTAIN A SELL



In 1H2013, CTC reported profits of LKR4.3bn (+10% YoY) despite a c.7% YoY decline in volumes. Improving net revenue margins (23.5% in 1H2013 vs. 23% in 1H2012) supported by an upward price revision in Oct 2012 (LKR2/stick) led to a 10% growth in profitability. The recent LKR3/stick price hike in July 2013 which was 81% higher than the LKR1.65/stick levy increase is likely to drive net revenue margins* to 24% for 2013E. CAL revises 2013E profit to LKR8.9bn (+9% YoY) from our previous estimate of LKR8.5bn (+4% YoY) taking into account the recent price revision and an overall volume decline of 8 YoY%. CAL maintains a SELL on CTC based on declining sales volumes and an 85% premium to CAL's fair value of LKR649.
Attachments
CAL recommends to SELL CEYLON TOBACCO COMPANY  Attachment
CTC- 1H2013 Earnings Review - SELL - 07 July 2013.pdf You don't have permission to download attachments.(650 Kb) Downloaded 28 times

hariesha

Posts : 74
Reputation : 43

Back to top Go down

Back to top


 
Permissions in this forum:
You cannot reply to topics in this forum