KAPI analysis

can anyone describe about kap.N?
i hav some ideas to touch this share first tym.
thanks in advance,

kj wrote:can anyone describe about kap.N?
i hav some ideas to touch this share first tym.
thanks in advance,

Hi Kj

U can click on this link to see the lengthy discussion including positive and negative about KAPI.....

http://forum.srilankaequity.com/t210-kapi-is-on-track-in-developing-new-projects

http://forum.srilankaequity.com/t1760-construction-and-manufacturing-to-drive-2011-stock-profits-keep-on-eye-kapi

If u have any info about KAPI, pls share with us...

Future Projects

1. Purchasing of Northern Power Company Private Limited, a 40MW HFO power plant located in Chunnakam, Jaffna, as the largest provider of electricity to the Jaffna Peninsula

2. KAPI’s subsidiary CML-MTD Construction (Pvt.) Ltd. Has received the contract to undertake many road and bridge construction projects across the nation.

3. Provide total solution for hydropower power plants in Sri Lanka one-stop-shop concept for mini hydropower companies in the country. In partnership with the world’s largest hydropower company, the Andritz Group.

4. Received contracts for the Southern Highway and other major highways and roads throughout the island.

5. KAPI won the bid to construct Colombo- Katunayake expressway

6. Expand and consolidate its subsidiaries of Walkers Piling and Walkers Engineering by installing two new piling machines worth Rs. 200 million, that has been ordered and two more are in the pipeline in expectation of the construction boom.

Financial Review....

Third quarter performance highlights that KAPI started to generate revenue from new contracts and projects, which have been pointed out in this post…

After the rights issue, as I predicted the 4th quarter and coming quarters results will be remarkable in terms of profit and its value… This 3rd quarter performance is the first step to entering into KAPI's new milestone....

KAPI 3rd quarter results @ Glance - ( Income Statement & Balance Sheet – Group)

Revenue For the quarter - Rs.653,195,579 – 129% increased

Revenue For 9 months - Rs.1,553,568,289 – 45% increased

Operational Profit For the quarter - Rs.179,910,318 – 520% increased

Operational Profit For 9 months - Rs.242,379,741 – 89% increased

Net Profit For the quarter - Rs.126,059,112 – 768% increased

Net Profit For 9 months - Rs.110,218,497 – 641% increased

EPS For the quarter (Before the Right issue) - Rs.22.05 whereas 2009- Rs.2.54

EPS For 9months (Before the Right issue) - Rs.19.28 whereas 2009 – Rs.2.60

Net assets Per Share (Before the Right issue) – Rs.47.18 ---- 2009 Rs. 43.35

The Financial highlights after the rights issue based on 3rd Quarter Results…


The Right Issue

Right issue 19:1 @ 33

Total Share issued on Rights ----------------- 108,639,283

Total Proceeds From Rights ----------------- Rs. 3,585,096,339.00

NAV/ Share After Rights

Equity ----------------------------------------------- Rs.479,584,783

Total Proceeds From Rights ----------------- Rs. 3,585,096,339

Total -----------------------------------------------Rs. 4,064,681,122

Total No of Shares After Rights-------------- 114,357,140

NAV Per Share ---------- Rs.35.54 ( Business Value Per Share)

Total Attributable Value to Equity Shareholder ------------ Rs. 269,778,996

Total Proceeds From Rights ----------------- --------------------Rs. 3,585,096,339

Total ----------------------------------------------- -------------------- Rs. 3,854,875,335

Total No of Shares After Rights----------------------------------- 114,357,140

NAV Per Share ---------- Rs. 33.70 ( Value /Share to Equity Shareholder)

EPS / Share After Rights

Total Group Earnings --------- ---------------------------------- Rs.110,218,497

Total No of Shares After Rights----------------------------------- 114,357,140

EPS/ Share ------------- Rs. .96

Total borrowing of Group ( As per Dec 2010)


Interest Bearing loans---------------------------------- Rs. 849,770,754

Non Interest Bearing loans--------------------------- Rs. 3,597,928,709 ( this may be received from related company to acquire the

company , stated in the propose of right issue)

Overdraft ------------------------------------------------ Rs. 311,689,918

Total Borrowings --------------------------------------- Rs. 4,759,389,381

Total Interest Expenses.-----------------------------------Rs 112,228,527

The Purpose of right Issue

The purpose for which the proceeds of the issue are to be utilized
1. To capitalize loans received for the acquisition of companies previously
2. To acquire Northern Power Company (Pvt) Ltd
3. To Finance Working Capital of the company

http://www.cse.lk/cmt/uploadAnnounceFiles/9961288151500_444.pdf

The proceeds of this Rights Issue will be used for the 100% purchase of Northern Power Company Private Limited, a 30MW HFO power plant located in Chunnakam, Jaffna, as the largest provider of electricity to the Jaffna Peninsula. The balance of the Rights Issue proceeds will be used for capital expenditure and working capital requirements of the MTD Group of Companies.

http://srilankastockpicks.blogspot.com/2010/12/mtd-walkers-plc-announce-rights-issue.html

We do not know about the numbers of the loans received for the acquisition of companies previously and the amount required to acquire Northern Power Company (Pvt) Ltd. However I would say major part of the loan will be settled from the right issue. Hence Finance cost amounts Rs.67Mn will be reduced and this would strengthen the bottom line. This scenario will highlight only on 4th quarter results.

Let us workout the utilization of right issue

Total Proceeds From Rights ----------------- ----------Rs. 3,585,096,339

Interest Bearing loans---------------------------------- Rs. 849,770,754

Non Interest Bearing loans--------------------------- Rs. 3,597,928,709 ( this may be received from related company to acquire the company , stated in the propose of right issue)

Overdraft ------------------------------------------------ Rs. 311,689,918

Total Borrowings --------------------------------------- Rs. 4,759,389,381

We do not the company preference to settle the loan facility. As stated in the purposes of right issue announcement, part of non interest bearing loan will be settled from the right issue proceeds and part of interest bearing loan also will be settled…

We can see only the restructured and sound balance sheet from the 4th quarter by reflecting above numbers. Further income generate from new projects (mentioned in previous) also will contribute to strengthen the company performance and value…


Keep on Investing in growth sectors……


Happy Trading...

thank u so mch for this valuable details ....

@Seyon, Thanks for your analysis. If you look at 3Q financial report, Rs141.55 million is added to the gross profit as other income. They have not mentioned how they got this other income. Any idea?

Monster wrote:@Seyon, Thanks for your analysis. If you look at 3Q financial report, Rs141.55 million is added to the gross profit as other income. They have not mentioned how they got this other income. Any idea?

Hi Monster

When u analyze the segment info (page 9) Rs.135Mn comes from power generation operated by Northern power company (new subsidiary). This other income may be resulted from negative goodwill on acquisition of Northern power company.. ( This is i guessed... may be some other source of income..)

Generally i do not come to the conclusion from the bottom line, since there may be rise up in the profit from other operating income such as negative goodwill on acquisition, reversal of impairment and other provisions...

Look at the KAPI Gross profit From 221Mn to 322Mn.... this is good sign for the operational growth...As i mentioned coming quarter results and financial statement would give good picture of KAPI performance and the value of the share.....

Hope i answer ur question.......


Happy Trading...

KAPI added other flavor to its service mix by acquiring Sri Lanka’s largest marine engineering companies

With the recent acquisition of one of Sri Lanka’s largest marine engineering companies, MTD Walkers has re-entered the marine engineering industry to now become the biggest ship repair company in Sri Lanka.

MTD Walkers said yesterday it has paid Rs. 275 million to acquire flamboyant but award winning entrepreneur Kiran Atapattu-founded Colombo Engineering Enterprises (CEE), a fully integrated, ultra-modern ship repairing facility which is strategically located within the port of Colombo. The new company is rebranded as Colombo Engineering Services Ltd.

MTD Walkers Chief Operating Officer Lal Perera said: “This is a very exciting time in our company’s development.

By re-creating this division for marine services we will be able to meet the needs of all marine engineering services required for ships plying our waters.

Our acquisition of Colombo Engineering Enterprises will allow us to serve our clients with a dedicated specialist team and the Walkers workshop will add value to manage the complex calculations and operations these projects require.” The new company, Colombo Engineering Enterprises will leverage on the existing Walkers’ fully equipped workshop to expand the current services offered by the Company.

During the past, the lack of proper ship repair services has meant that many of the ships had to bypass the port of Colombo and travel to Singapore.

“With the port of Colombo strategically positioned in the Indian Ocean’s shipping route, it is vital that we have fully equipped and well managed workshop that will ensure these ships do not bypass us for their repairs. Now we can boast of having one of the best workshops in this region and we intend on expanding the Marine Engineering sector of Walkers rapidly” said Perera.

Post acquisition the new owners have appointed Kiran Atapattu as the Head of the Marine Engineering Division, of MTD Walkers Plc with immediate effect.

With his years of experience in this industry, Atapattu will continue to lead the operations delivering strategic services to vessels entering the port of Colombo. “Now we become the biggest marine engineering company in Sri Lanka and are geared to compete with anyone in this region. Clients will retain their existing points of contact in terms of commissioning Colombo Engineering Services Ltd., for all marine engineering services.”

Colombo Engineering Services Ltd. has fully-equipped marine engineering facilities for ship repair work, the most modern technology and equipment for underwater services and backed-up by a fleet of high-powered crafts to respond to requirements in the high seas. All its functions and services are performed whilst the ships are afloat and therefore dry-docking or any special berthing requirements are definitely not required. Its entire operations are carried out on ships during discharging or loading of cargo or containers, when bunkering, or when the ships are at anchor outside the harbour. Afloat repairs are also carried out on ships in the high seas.

MTD Walkers Plc has had as its core businesses the manufacture of tea machinery, and have now ventured into other engineering functions such as piling (heavy foundations), steel fabrication and other infrastructure development projects. MTD Walkers Plc has a group of subsidiaries namely: CML-MTD Construction LTD, Walker Sons & Company Engineers Ltd, Walkers Piling Private Limited, Northern Power Co. Ltd., MTD Walkers Projects and Colombo Engineering Services Ltd.