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Aitken Spence PLC is a Sri Lanka-based holding company. The Company's segments include Tourism sector, Maritime & Logistics sector, Strategic Investments and Services sector. The Company's Tourism sector includes hotels, inbound and outbound travels, and airline general sales agency (GSA). The Company's Maritime & Logistics sector includes maritime and port services, freight forwarding and courier, integrated logistics, airline GSA (cargo) and maritime education. Its Strategic Investments sector includes power generation, printing and packaging, apparel manufacturing and plantations. Its Services sector includes inward money transfer, elevator agency, insurance, property and technology. In addition, the Company provides management and related services to its subsidiaries. The Company's subsidiaries include Ace Apparels (Pvt) Ltd., Ace Freight Management (Pvt) Ltd., Ace Windpower (Pvt) Ltd., Aitken Spence Apparels (Pvt) Ltd. and Aitken Spence Insurance (Pvt) Ltd.
Aitken Spence (SPEN) is the fourth largest listed conglomerate on the Colombo Bourse with a market capitalization of USD337.8 mn trading on 42% discount to the more liquid John Keells Holdings (JKH.SL:LKR240.1) (possibly due to the liquidity premium which JKH commands) and a 25% discount to the Diversified sector, which trades on 16.2X (4 quarterly earnings).
SPEN which has exposure to Tourism, Logistics, Power generation, Plantations and other services generates 83% of its net earnings from the chief contributing Tourism sector whilst still trading below the Leisure sector with a 24% discount. The group currently yields a ROE of 11.4% (FY14) whilst earnings which grew at 16% CAGR, FY10-FY14 are expected to grow c.16% YoY in FY15E-FY16E. We forecast net profit of LKR4,247.6 mn for FY15E (up 15.7% YoY) and LKR4,932.9 mn for FY16E (up 16.1% YoY). The stock trades on 10.4x forecast FY15E net profit and 8.9x estimated FY16E net profit whilst trading at a discount of c.18% to its sum of the parts valuation of LKR127.4.
Therefore we maintain our recommendation BUY.
Red More...
http://research.srilankaequity.com/t892-aitken-spence-fourth-largest-listed-conglomerate-on-the-colombo-bourse
Aitken Spence (SPEN) is the fourth largest listed conglomerate on the Colombo Bourse with a market capitalization of USD337.8 mn trading on 42% discount to the more liquid John Keells Holdings (JKH.SL:LKR240.1) (possibly due to the liquidity premium which JKH commands) and a 25% discount to the Diversified sector, which trades on 16.2X (4 quarterly earnings).
SPEN which has exposure to Tourism, Logistics, Power generation, Plantations and other services generates 83% of its net earnings from the chief contributing Tourism sector whilst still trading below the Leisure sector with a 24% discount. The group currently yields a ROE of 11.4% (FY14) whilst earnings which grew at 16% CAGR, FY10-FY14 are expected to grow c.16% YoY in FY15E-FY16E. We forecast net profit of LKR4,247.6 mn for FY15E (up 15.7% YoY) and LKR4,932.9 mn for FY16E (up 16.1% YoY). The stock trades on 10.4x forecast FY15E net profit and 8.9x estimated FY16E net profit whilst trading at a discount of c.18% to its sum of the parts valuation of LKR127.4.
Therefore we maintain our recommendation BUY.
Red More...
http://research.srilankaequity.com/t892-aitken-spence-fourth-largest-listed-conglomerate-on-the-colombo-bourse
