RCL - 31.12.2011

http://www.cse.lk/cmt/upload_report_file/683_1327060702367.12.2011.pdf

Thanks Gaja

Company has produced Rs 595 million as net profit during the period, which is around 20% improvement compared to the previous quarter and 45% improvement compared to the same period a year ago. RCL is currently trading just below PE 8. RCL should worth at least 170/- by considering PE ration 10.

Company chairman Mr A.M. Weerasinghe has disposed around 650,000 shares during the period. His stake has dropped from 8.33% to 7.75%.

its a encouraging result in this economic situation.will other companies also produce good results?lets see how others perform.

Monster wrote:Company has produced Rs 595 million as net profit during the period, which is around 20% improvement compared to the previous quarter and 45% improvement compared to the same period a year ago. RCL is currently trading just below PE 8. RCL should worth at least 170/- by considering PE ration 10.

Company chairman Mr A.M. Weerasinghe has disposed around 650,000 shares during the period. His stake has dropped from 8.33% to 7.75%.

In a bear market it is not uncommon to see good counters trading below 5 PER. As such RCL may further drop to around 100 or more within this year.

This is what LBO says about RCL report.

Jan 21, 2012 (LBO) - Sri Lanka's Royal Ceramics group, a tile and bathware maker said net profits for the December 2012 quarter rose 44.2 percent to 595 million rupees from a year earlier, with gross revenues growing 27 percent to 2.3 billion rupees.
The group reported earnings of 5.38 rupees for the quarter.

For the year to December group profits were 1.48 billion rupees up 45 percent giving earnings of and 13.39 rupees. The stock last traded at 133.30 rupees.

Group gross revenues grew 23 percent to 5.8 billion rupees.

In the December quarter, group net revenues grew 27 percent to 2.13 billion rupees, cost of sales grew 23.7 percent to 1.1 billion rupees and gross profits grew at a faster 30.8 percent to 1.0 billion rupees.

At the core tile firm profits grew 58 percent to 366 million rupees helped by 128 million rupees in share sales.

Associate companies' share of losses were reported as 8.1 million rupees.

In June 2011, the bought a 20 percent stake in Lewis Brown & Company, the parent of Sri Lanka's Delmege Forsyth group for 624 million rupees in a acquisition led by its parent Vallibel One Plc.

It had also bought 100 percent of Everpaint and Cheminal Industries in Pairl 2011 at 70.4 million rupees. It also fully owns Rocell Bathware.

illuminati wrote:

Monster wrote:Company has produced Rs 595 million as net profit during the period, which is around 20% improvement compared to the previous quarter and 45% improvement compared to the same period a year ago. RCL is currently trading just below PE 8. RCL should worth at least 170/- by considering PE ration 10.

Company chairman Mr A.M. Weerasinghe has disposed around 650,000 shares during the period. His stake has dropped from 8.33% to 7.75%.

In a bear market it is not uncommon to see good counters trading below 5 PER. As such RCL may further drop to around 100 or more within this year.

This is a baseless statement from a spineless bear.. U don't see any value of a company rather than trying to bring the price down
All the statements of yours carry an emblem of "it may come down.." mark.. U must be the horrible bear we have seen for sometime..
Ok.. we all have dream prices for the counters we like, i.e. I like if I can get RCL@80, VONE@15, LFIN@100, etc.. etc... But we cant be so irresponsible to say a counter can come down without elaberating it nuh?

In a bear market, not only RCL, almost all fundamental stocks go down rapidly and trade far below its fair value..
So if RCL goes to 100 or below its a rare chance to pick a very good company with strong earnings patterns..
SL expects a 30% increase in tourist arrival this year hence the hotel sector developments is a must.. With the infrastructure and hotel sector developments, products of RCL will also have a demand amidst a fierce competition from LWL, etc...

thanks smallvillie,
someone has to point out these things.At the moment i dont have any RCl but really appreciate the RCL as one of few growth companies in CSE with a good business.

But who is willing to buy casino kings shares ? VONE, LFIN, RCL , ...

All the companies (fuel business) are used to expand self owned (casino) business.

Recently he got a big dividend only for him self from LFIN
Transferred SAMP @300 from 100% owned his account to 80%(?) owned VONE.
LFIN, RCL are using to expand main businesses without respecting return to specific subsidiaries

smallville wrote:

illuminati wrote:

Monster wrote:Company has produced Rs 595 million as net profit during the period, which is around 20% improvement compared to the previous quarter and 45% improvement compared to the same period a year ago. RCL is currently trading just below PE 8. RCL should worth at least 170/- by considering PE ration 10.

Company chairman Mr A.M. Weerasinghe has disposed around 650,000 shares during the period. His stake has dropped from 8.33% to 7.75%.

In a bear market it is not uncommon to see good counters trading below 5 PER. As such RCL may further drop to around 100 or more within this year.

This is a baseless statement from a spineless bear.. U don't see any value of a company rather than trying to bring the price down
All the statements of yours carry an emblem of "it may come down.." mark.. U must be the horrible bear we have seen for sometime..
Ok.. we all have dream prices for the counters we like, i.e. I like if I can get RCL@80, VONE@15, LFIN@100, etc.. etc... But we cant be so irresponsible to say a counter can come down without elaberating it nuh?

In a bear market, not only RCL, almost all fundamental stocks go down rapidly and trade far below its fair value..
So if RCL goes to 100 or below its a rare chance to pick a very good company with strong earnings patterns..
SL expects a 30% increase in tourist arrival this year hence the hotel sector developments is a must.. With the infrastructure and hotel sector developments, products of RCL will also have a demand amidst a fierce competition from LWL, etc...

Thanks smallville for the clarification.

I'm always suspicious of the account books cooked by the valibel family.

Royal ceramic core business is 90% or more tiles. Check the total revenue figures,
2010 - 4279,
2011 - 4422.

So sales only improved by mere 3%. Main growth is on the other 10% business bathware. So it's better if RCL wind up their core business, distribute the money to investors and go into solely bathware business. But that won't happen. Anyway I'm suspicious of any Perera's accountants.

The local investors have this false optimism for so long, that this will improve, that will grow, those things will give massive profits. But in reality that day hasn't come so far after so many years.
If somebody says new construction projects and hotels will improve the sales. The reality. You have to understand many of the building projects import the raw materials from the outside. I have seen this remark in many of the annual reports by the directors. Sometimes it's because the project is funded by the foreign country. E.g. China. So they go for their suppliers not the local companies. If you take star hotels I think bath fittings are usually European, not local.

Anyway it doesn't matter if RCL profitable or not. It's just a private property of the Perera. When he want to take the money out he will sell something and suck out your profits. If he wants a loan RCL will give a loan at near zero interest. If he wants to buy some company he will direct RCL to buy the company. So as a minority shareholder you are powerless, you get nothing. You're like a passenger in a Sri Lankan bus.

Interesting info. hasi17.

smallville wrote:

illuminati wrote:

Monster wrote:Company has produced Rs 595 million as net profit during the period, which is around 20% improvement compared to the previous quarter and 45% improvement compared to the same period a year ago. RCL is currently trading just below PE 8. RCL should worth at least 170/- by considering PE ration 10.

Company chairman Mr A.M. Weerasinghe has disposed around 650,000 shares during the period. His stake has dropped from 8.33% to 7.75%.

In a bear market it is not uncommon to see good counters trading below 5 PER. As such RCL may further drop to around 100 or more within this year.

This is a baseless statement from a spineless bear.. U don't see any value of a company rather than trying to bring the price down
All the statements of yours carry an emblem of "it may come down.." mark.. U must be the horrible bear we have seen for sometime..
Ok.. we all have dream prices for the counters we like, i.e. I like if I can get RCL@80, VONE@15, LFIN@100, etc.. etc... But we cant be so irresponsible to say a counter can come down without elaberating it nuh?

In a bear market, not only RCL, almost all fundamental stocks go down rapidly and trade far below its fair value..
So if RCL goes to 100 or below its a rare chance to pick a very good company with strong earnings patterns..
SL expects a 30% increase in tourist arrival this year hence the hotel sector developments is a must.. With the infrastructure and hotel sector developments, products of RCL will also have a demand amidst a fierce competition from LWL, etc...

This is all bullshit talk of a wounded bear as I never commented on RCL fundamentals nor its business environment.Even a kindergarten kid could understand what I said. Six months ago it was all about chicken and rubber. Now It is really funny to see once a raging bull trying to wear bear "Jungies" The crux of the matter is spineless bears are winning the battle. The market is sure to plummet to unbelievable depths during this year burning most of the empty headed bulls.

illuminati wrote:
This is all bullshit talk of a wounded bear as I never commented on RCL fundamentals nor its business environment.Even a kindergarten kid could understand what I said. Six months ago it was all about chicken and rubber. Now It is really funny to see once a raging bull trying to wear bear "Jungies" The crux of the matter is spineless bears are winning the battle. The market is sure to plummet to unbelievable depths during this year burning most of the empty headed bulls.

Dude.. Now I know for sure u cant analyse a value of share at all.. This is what I'm trying to highlight abt u.. U dont know RCL's fundamentals but talk of getting it at 100.. Any one with a head of a Ladybug would know if a bear market continues, all counters can come further down.. RCL is only an example.. So pls.. either u elaborate with facts or try to window dress ur theories with some cock and bull kinda stories to make it attractive..

I figured out U can only do two things;

1) Always try the level best to Condemn share discussed by others or try to point its less in value while u grasp the facts and figures nicely enlightened (may be u think of collecting it when market goes further down)
2 Repeat point no.1 AMA U CAN..

Have u at least seen Hasi17's nice interpretation of facts abt RCL's growth???? There are some facts that we dont see sometimes which others see which they bring up..

I do not have a personal anger, neither do I know u.. But as far as forum goes, pls be good enough to bring an argument or your reasoning with facts. Otherwise this is not healthy for a forum..

Forums need all kinds of ppl. bulls bears, balance ones to understand the stocks in black and white..

hasi17 wrote:I'm always suspicious of the account books cooked by the valibel family.

Royal ceramic core business is 90% or more tiles. Check the total revenue figures,
2010 - 4279,
2011 - 4422.

So sales only improved by mere 3%. Main growth is on the other 10% business bathware. So it's better if RCL wind up their core business, distribute the money to investors and go into solely bathware business. But that won't happen. Anyway I'm suspicious of any Perera's accountants.

The local investors have this false optimism for so long, that this will improve, that will grow, those things will give massive profits. But in reality that day hasn't come so far after so many years.
If somebody says new construction projects and hotels will improve the sales. The reality. You have to understand many of the building projects import the raw materials from the outside. I have seen this remark in many of the annual reports by the directors. Sometimes it's because the project is funded by the foreign country. E.g. China. So they go for their suppliers not the local companies. If you take star hotels I think bath fittings are usually European, not local.

Anyway it doesn't matter if RCL profitable or not. It's just a private property of the Perera. When he want to take the money out he will sell something and suck out your profits. If he wants a loan RCL will give a loan at near zero interest. If he wants to buy some company he will direct RCL to buy the company. So as a minority shareholder you are powerless, you get nothing. You're like a passenger in a Sri Lankan bus.

Thanks Hasi17, its a nice interpretations of unseen or unchecked facts.. I was under the impression the new projects would bring business to the table but now I see things can go haywire too
What's ur opinion? Lets take Mr D Pere's business portfolio - when u think of RCL its a huge one he hold, and as u said, he can do many things with this.. And they've done some expansions for anticipated growth in demand for Ceramic products.. How would you see this in years to come??

Do u think the same with the rest of the umbrella? We have LFIN, VFIN and VONE the holder to check..

Thanks.. its a good elaboration after all

Smallville

Why the hell should any one be angry with any body. This is a public forum and any one has the freedom to comment the way he or she wishes. This may not be the exact way you convey things. I expect this kind response from you and many others in the forum since it is biased towards the bulls. How many times we see comments like the the market will fly, this rally that rally etc etc and were they backed by reasons ? No. In fact they are cheered upon.

I respect your freedom to express whatever you wish the way you want and I expect the same freedom to expose the bulls my way.

illuminati

You have the freedom in all aspects as others, and u might've understood we've blasted all kinds of promotional aspects with facts and figures where-ever possible so that even a new comer would understand the pure attempts of the respective crowd.

All are given freedom to talk and express their views unlike other forums which require admin inter vision to authorize posts (specially new logins) and the freedom doesn't mean any of the members to talk crap here.. WE respect the community and their ideas but not their attempts to bring down the ppl, forum or the entire society.. So if any1 talks of a bull or bear run there must be reasons, i.e. for me its technical, for u it may be another factor but we must be responsible enuf to elaborate with facts rather than saying "it will go up/down"

I'm not a bull or a bear either.. I have reasons to believe the market is not in a good shape to go up but then again some big shots enter and uplift the market to the next level for their gain so then the market may reach its high for all of us to clean the mess we were...

I assure you, that you gain my respect in every aspect if you talk in sense..
Exposing bulls ain't gonna help the forum readers, what helps is; exposing the bitter facts abt companies, share promoters in forum..

We must understand "With great power comes great responsibility"

As you have finally admitted that you are waiting to get out of the mess once the market improves hence I understand your frustration and anxiety whenever someone expresses bearish sentiments. I stand by every word I posted in this forum and please don,t expect others to behave the way you want. Why do you say the market is not in good shape? As I see it the market is heading in the right direction predicted by a few people in this forum.

smallville,

no point of arguing. They will understand one day when experienced enough. If a company continues to grow, then there is nothing to worry about the price that trades.
we can not expect all the construction projects to use RCL's products. But there will be an increment in the demand somewhat. [Thats a reasonable assumption than assuming increasing tourists will eat all BFL's chicken. lol]

Well if the core business is not grown, its a real concern. But the fact that they identified a related growing sector and use that opportunity to make profit is a good indication. No business has to stuck upto its core business. If they can increase shareholder's value, thats the important bit.

Feel so funny when ppl call DP casino guy / Hari the boos guy. They have seen an opportunity in the market and filled that gap. Its not like DP go n play casino to make money, or Hari just get drunk every night as its his business. They are supplying whats demanded by the market. whats so wrong with that. See from where they started and where they are now.

DP owns nearly 80% or more of VONE. You think he will risk nearly 20billion to make small personal gains ? There are board of directors, shareholders, stakeholders of all these listed companies. Then how can the chairman take money at 0% interest from these companies? ?

chamith wrote:

DP owns nearly 80% or more of VONE. You think he will risk nearly 20billion to make small personal gains ?

If he owns 80%, does he have to worry about share price of VONE?
My view is that, unless he wants to sell part of his stake, he will not worry about share price. But he will worry about earnings. Sadly increase in share price will not increase EPS. So, instead of jacking up the share price, D.P may do things to increase EPS, and let the market to decide share price.

Genting wrote:

chamith wrote:

DP owns nearly 80% or more of VONE. You think he will risk nearly 20billion to make small personal gains ?

If he owns 80%, does he have to worry about share price of VONE?

Would you like when the shares you brought go down?
Simple as that

chamith wrote:
Would you like when the shares you brought go down?
Simple as that

True, he bought RCL, SAMP etc shares. Using those he created VONE shares.
My point is, as long as he is not hoping to exit, he will not worry about the market price. Especially at a time like this.

When things become green and when he want's to sell part of his stake, the share will sky rocket!

illuminati wrote:As you have finally admitted that you are waiting to get out of the mess once the market improves hence I understand your frustration and anxiety whenever someone expresses bearish sentiments.

Dude, did I talk abt me? Ur English writing is good but u have a problem with the reading it seems.. I stand for the crowd @ large who were stuck buying reasonable prices but sighing due to market condition not getting improved.. Since I'm too bearish abt the market movements I dont mind ur being bearish, I only stand against u for dispersing negativity without evidence..

illuminati wrote:
Why do you say the market is not in good shape? As I see it the market is heading in the right direction predicted by a few people in this forum.

If the market is heading in right direction why the hell u always talk abt getting counters lower than now?? If market is to go up, shares prices will also increase know.. I dont understand ur contradictory arguments.. Dont be an agent of any negativity community..
U cant give reasons as to why ur bearish while I give reasons why I'm bearish..This could make u a joker in the forum..

Honestly ur hate is towards the moderators and crowd who talked abt chicken and plantations.. WHY???? may be u've bought and couldn't sell or u missed the bus..
As I said, if anything was said by me or other mods as the way u see it called promotions, or even by other members, those were backed up with the technical or fundamental reasoning than saying "this will go up/down", "you can get this counter low in a month,etc.."
Even at that point u might see its promotional but majority done see it cuz there were points given for the members to read and understand.. But if they have a problem understanding what they read, can we help????

chamith wrote:smallville,

no point of arguing. They will understand one day when experienced enough. If a company continues to grow, then there is nothing to worry about the price that trades.
we can not expect all the construction projects to use RCL's products. But there will be an increment in the demand somewhat. [Thats a reasonable assumption than assuming increasing tourists will eat all BFL's chicken. lol]

True true.. However hard someont tried these ppl never want to understand the point..

As u can see this is the reason why most of the seniors are not posting or replying comemtns these days..

ATTITUDE is EVERYTHING!!!

Let the idiots drive for awhile as we take a break, in a month's time forum will have to be shutdown with the bombarded criticism..

RCL will grow. No question about that. Business will be good. There will be profits on paper. But all the profits will go to the major shareholders. Other investors will get nothing unless they become traders. One of the important things in value investing is good investor friendly management. Otherwise no point in investing. Book profits doesn't mean anything unless they grow your wealth.

How low can we become to say some business tycoon is so great knowing that because he took ownership of a government business virtually for nothing while the rest of the citizens work day and night and take loans in their whole life time to build a house and buy a car in legal means, or because a tycoon pointed guns and threatens the director board and the journalists to take control of the businesses, or because somebody became successful by running a gambling center, or somebody became successful in creating artificial rallies and stealing money from the foolish investors and build hotels.