Conglomerate, Hayleys PLC (HAYL) posted LKR278.9 mn net earnings for 3QFY10 (Vs LKR74.3 mn in 3QFY09) whilst recording LKR831.5 mn, a four-fold increase for the first nine months of the year.
HAYL's post tax earnings have increased three-fold during the quarter in concern, resulting cumulative earnings of LKR831.5 mn which has recorded a stunning four-fold growth when compared with the corresponding period last year.
This is on the back of a strong manufacturing sector with considereable stakes in the global market coupled with reviving consumer and leisure sector which have supported the reported group earnings.
We forecast FY10E net profit revised up to reach LKR1,031.5 mn (up by a staggering 231% YoY) and to mark the highest ever profits achieved by the group. Further we project the conglomerate to record a net profit of LKR1,083.1 mn in FY11E (up by a conservative 5% YoY) owing to diversity of the company which is poised for growth in manufacturing, agricultural and leisure sectors.
Share is fairly valued on 16.0X projected FY10E earnings and 15.2X forecast FY11E net profit whilst trading on 1.3X PBV. - Maintain BUY
Sri Lanka Equity Analytics
World Trade Centre
Colombo, Sri Lanka
Email: info@srilankaequity.com
Web: www.srilankaequity.com
Monday, February 8, 2010
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