PLC is state owned, and with good income

ccsentha · 1 PLC is state owned, and with good income Sat Apr 07, 2012 10:30 pm

ccsentha

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PLC is state owned, and with good income and with lower P/E.
It could be a future gem.

What do you think guys?

sriranga · 2 Re: PLC is state owned, and with good income Sat Apr 07, 2012 10:58 pm

sriranga

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Public Holdings
The percentage of shares held by the public as at 31st December 2011 was 28.11%.

PLC is state owned, and with good income Plc10

Rajaraam · 3 Re: PLC is state owned, and with good income Sun Apr 08, 2012 1:30 pm

Rajaraam

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ccsentha wrote:PLC is state owned, and with good income and with lower P/E.
It could be a future gem.

What do you think guys?

PLC is a very good company in the Banking and Finance sector. In fact PLC is the current leader in leasing business in the country. Their profit after Tax (PAT) has increased from Rs 748 mn in 2007 t0 Rs. 1047 mn in 2009, Rs 1200 mn in 2010 and Rs. 2580mn in 2011

PAT -for 9 months ending 31.12.2011 ......=Rs. 3377 mn
PAT -for 3 months ending 31.12.2011 ......=Rs. 843 mn
EPS -for 9 months ending 31.12.2011 ......=Rs. 2.66
EPS - the for Quater ending 31.12.2011 ..=Rs. 0.61
Net Asset Value(NAV)............................=Rs. 10.61
Number of shares issued.............................................=1560 mn
----Number of shares before IPO.............=78 mn
----After Share Split 1 in to 15 before IPO=78x15=1170 mn
----Shares isssued on IPO...............................= 390 mn
----Total shares after IPO ..............................=1560 mn

Non Performing Advance ratio-2009..........=2.9%
Non Performing Advance ratio-2010..........=1.2%

Number of Branches...............................=37
Number of window offices at PB branches..=121

They also have several subsidiaries;
1. SMLL-Peopls Finance Ltd
2. Peoples Insurance Ltd
3. Peoples Leasing Property Development Company Ltd
4. Peoples Leasing Havelock Properties Ltd
5. Peoples Microfinance Ltd

PLC also won the 2 nd Runner-up Award in the Best Corporate Citizen Award 2010 organized by Ceylon Chamber of Commerce..
Another strong point is the backing of the Peoples Bank; state owned commercial Bank which has recorded the highest profit in the banking sector for the last financial year.

Looking at above figures I strongly believe that PLC has a bright future

Last edited by Rajaraam on Sun Apr 08, 2012 2:09 pm; edited 1 time in total

Redbulls · 4 Re: PLC is state owned, and with good income Sun Apr 08, 2012 2:01 pm

Redbulls

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Rajaraam wrote:

ccsentha wrote:PLC is state owned, and with good income and with lower P/E.
It could be a future gem.

What do you think guys?

PLC is a very good company in the Banking and Finance sector. In fact PLC is the current leader in leasing business in the country. Their profit after Tax (PAT) has increased from Rs 748 mn in 2007 t0 Rs. 1047 mn in 2009, Rs 1200 mn in 2010 and Rs. 2580mn in 2011

PAT -for 9 months ending 31.12.2011 ......=Rs. 3377 mn
PAT -for 3 months ending 31.12.2011 ......=Rs. 843 mn
EPS -for 9 months ending 31.12.2011 ......=Rs. 2.66
EPS - the for Quater ending 31.12.2011 ..=Rs. 0.61
Net Asset Value(NAV)............................=Rs. 10.61
Number of shares issued.........................=1560 mn
Non Performing Advance ratio-2009..........=2.9%
Non Performing Advance ratio-2010..........=1.2%

Number of Branches...............................=37
NumbPLC is a very good company in the Banking and Finance sector. In fact PLC is the current leader in leasing business in the country. Their profit after Tax (PAT) has increased from Rs 748 mn in 2007 t0 Rs. 1047 mn in 2009,Rs 1200 mn in 2010 and Rs. 2580mn in 2011

PAT -for 9 months ending 31.12.2011 ......=Rs. 3377 mn
PAT -for 3 months ending 31.12.2011 ......=Rs. 843 mn
EPS -for 9 months ending 31.12.2011 ......=Rs. 2.66
EPS - the for Quater ending 31.12.2011 ..=Rs. 0.61
Net Asset Value(NAV)............................=Rs. 10.61
Number of shares issued.............................................=1560 mn
----Number of shares before IPO.............=78 mn
----After Share Split 1 in to 15 before IPO=78x15=1170 mn
----Shares isssued on IPO...............................= 390 mn
----Total shares after IPO ..............................=1560 mn

Non Performing Advance ratio-2009..........=2.9%
Non Performing Advance ratio-2010..........=1.2%

Number of Branches...............................=37
Number of window offices at PB branches..=121

They also have several subsidiaries;
1. SMLL-Peopls Finance Ltd
2. Peoples Insurance Ltd
3. Peoples Leasing Property Development Company Ltd
4. Peoples Leasing Havelock Properties Ltd
5. Peoples Microfinance Ltd

PLC also won the 2 nd Runner-up Award in the Best Corporate Citizen Award 2010 organized by Ceylon Chamber of Commerce..
Another strong point is the backing of the Peoples Bank; state owned commercial Bank which has recorded the highest profit in the banking sector for the last financial year.

Looking at above figures I strongly believe that PLC has a bright future

Well analysed Raja.
Thanks a lot,we need more like this.

smallville · 5 Re: PLC is state owned, and with good income Mon Apr 09, 2012 5:02 am

smallville

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OK here's my 50 cents Wink

PLC's June 2011 net profit has been lifted by a one-off reversal of general loan loss provisions (page 92, 93 (section 11.4) of prospectus.)
Provisions reversal during the first quarter of 11/12 amounting to LKR1,611 Mn (Page 84 of the prospectus). "Upon the continuous review of accounting policy on general provisioning, the current provision of Rs. 1,611,476,404 was reversed. This was done as a result of the continuous increase in the quality of the Company’s lending portfolio, the improved economic conditions of the country in all key sectors and the deterioration in market risk which was evidenced by the strong economic growth rate of 8% in the year 2010."
So provision reversals were 1,611 million but when income tax (451 million rupees) and value added tax (97 million rupees) were adjusted the net effect was 1,063 million rupees. This is a non cash benefit.
This brings the recurring June 2011 profit of PLC to Rs 615 Mn. against Rs 1,727.42 Million reported at group level.

Total number of shares as at 31/12/2011 - 1,655 Mn
preference shares (locked in for 1 year) – 95 Mn
Employee Shares (locked in for 1 year) transferred back to PLC - 54.6mn (http://www.cse.lk/cmt/uploadAnnounceFiles/2321325649133_1103.pdf)

Therefore, the number of shares that can be traded IMO – 1655 – (95+54.6) = 1505.4 Mn

However for calculations, 1655 Mn are the no. of shares..

So now if you redo this;
PAT for 9 months ending 31.12.2011 = Rs. 3377 Mn - Rs1,727.42 + Rs 615 mn = Rs. 2264.58 Mn.
So 9 months EPS comes to around = 2264.58 / 1655 = Rs. 1.36
Annualised EPS = Rs. 1.81

Total shareholders' funds = Rs. 17,501 Mn (removing minority interest)
Net assets value per ordinary share = 17,501 / 1655 = 10.57

Last Traded close = 11.50
Training P/E = 11.50/1.81 = 6.35
PBV = 11.50/10.57 = 1.08

So the market is willing to pay 6.35 for the company’s earnings Wink

However, in the view of PBV, 1X PBV is massively undervalued, WHY? We consider the financial institutes to trade at a 2X - 2.5 X PBV in normal terms, anything above 3X is considered overvalued..

Remember I said, PLC could come down to 15 or below? Well it went to 11 too..

My concluion is; Now PLC's price has come down to the correct level after its earnings ajdustments done, hence the current price is valuable for a collector for 2-5 years holding..

Pls do your own analysis in details, this is just a financial summery and for serious buys you should also analyse D/E ratios, Current ratios and other investor related research on the subject matter.. Also the market direction is really important as if market goes South, u may find this in 9-10 region..